Air France-KLM Withdraws Bid for Air Europa, Other Airlines Still Interested in Buying

Updated: July 31, 2025, 6:14pm CDT

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Air Europa Is Still For Sale
Final Thoughts

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After offering to buy a majority stake in Spanish airline Air Europa, the Air France-KLM Group has pulled out.

According to Reuters, a spokesperson for Air France-KLM confirmed that the duo were unable to settle on a price with Air Europa.

Air France-KLM might have retracted their offer, but at least 2 more airlines remain interested. Let’s take a look.

Air Europa Is Still For Sale

Air France-KLM’s negotiations with Globalia, the Spanish company that owns Air Europa, started in March.

Now, 4 months later, it appears Globalia’s valuation of Air Europa at $1.1 billion is likely to have been the nail in the coffin for Air France-KLM — almost 3x the group’s original offer of $327 million.

Air Europa business class seats short haul — In addition to long-haul aircraft, Air Europa has a fleet of 17 Boeing 737s that operate short-haul routes that connect Spain with the rest of Europe. Image Credit: Daniel Ross

Germany’s Lufthansa Group, which has just completed its acquisition of Italian flag carrier ITA Airways, also offered to acquire 25% of the Spanish carrier for €240 million (approximately $274 million). Carsten Spohr, Lufthansa’s CEO, confirmed in the airline’s recent earnings call that complex discussions are still in progress.

Next to join the race was Turkish Airlines in June. The national carrier of Türkiye wants to own a minority stake in the airline.

With its extensive route network to Latin America and the Caribbean, it’s no surprise there’s interest in Air Europa. The airline with the winning bid would gain access to a healthy network of nonstop long-haul routes from Air Europa’s principal hub in Madrid (MAD) — routes the other airline does not currently serve, such as:

Asunción, Paraguay (ASU)
Caracas, Venezuela (CCS)
Córdoba, Argentina (COR)
Medellin, Colombia (MDE)
Montevideo, Uruguay (MVD)
San Juan, Puerto Rico (SJU)

San Pedro Sula, Honduras (SAP)
Santa Cruz de la Sierra, Bolivia (VVI)
Santo Domingo, Dominican Republic (SDQ)
Santiago de los Caballeros, Dominican Republic (STI)
Punta Cana, Dominican Republic (PUJ)

An acquisition from Air France-KLM made logical sense, as Air Europa is an existing member of the SkyTeam Alliance, meaning the airlines already cooperate. For example, it’s already possible to credit Air Europa flights to Air France-KLM’s Flying Blue loyalty program.

Bottom Line:

After Air France-KLM recinded its offer to own a majority stake in Air Europe, Lufthansa Group and Turkish Airlines remain in the running.

Final Thoughts

It’s a shame Air France-KLM and Globalia couldn’t come to an agreement, as Air Europa would have slotted in nicely with Air France-KLM and the existing route network. There also wouldn’t be any questions about changing airline alliances.

Air Europa’s options are now down to the Lufthansa Group and Turkish Airlines as it looks for a cash influx after struggling with debt post-COVID-19, including the nearly $550 million in loans it took out from the Spanish government to stay afloat during the pandemic.

Though each airline plans to own a smaller stake than Air France-KLM, the billion-dollar valuation could still be enough to make the remaining bidders reconsider.