Turkish Airlines is preparing to submit a binding offer for a significant minority stake in Spain’s Air Europa, a move aimed at expanding the carrier’s presence in Europe, Latin America, and the Caribbean.

The Istanbul-based airline confirmed during its latest earnings call that the bid is in its final stages, pending board approval. The proposal involves a €275 million loan, convertible into a 26–27% equity stake in Air Europa once regulatory approvals are secured.

The transaction would provide Air Europa with much-needed liquidity to help refinance a government-backed loan, while giving Turkish Airlines access to the Spanish carrier’s extensive Iberian and transatlantic routes. Air Europa’s president, Juan José Hidalgo, has expressed satisfaction with the arrangement, indicating that with IAG (20%) and Turkish Airlines as shareholders, no further equity sales are planned.

The deal follows the withdrawal of both Lufthansa and Air France-KLM from the bidding process, leaving Turkish Airlines as the sole contender. Analysts say the move could create strategic synergies in passenger traffic, cargo operations, and route connectivity between Europe, the Americas, and beyond.

If approved, the agreement would mark one of Turkish Airlines’ most significant European investments to date, potentially reshaping competition across key transatlantic corridors.