Air Europa has accepted a €300 million offer from Turkish Airlines for a minority stake in the Spanish carrier, marking a major shake-up in Europe’s aviation landscape.

The deal, signed on Tuesday by Air Europa Chairman Juan José Hidalgo, will see Turkish Airlines provide €275 million as a loan, which will later be converted into shares pending regulatory approval. An additional €25 million will go toward the immediate purchase of shares, giving Turkish Airlines 26–27% ownership in Air Europa.

The fresh capital, combined with Air Europa’s existing cash balance, will be used to repay a €475 million pandemic-era bailout loan from SEPI, Spain’s state-owned holding company.

This move places Turkish Airlines alongside IAG, the parent company of Iberia, which already owns 20% of Air Europa. Iberia had once sought a full acquisition, but the plan collapsed after European regulators raised concerns about competition.

The new partnership is expected to reshape alliances in the region, as Air Europa strengthens its financial position while Turkish Airlines expands its influence in Western Europe.