Fri Aug 01 16:00:00 UTC 2025: **Air France-KLM Backs Out of Air Europa Stake Acquisition**

**Paris, France** – Air France-KLM has abandoned its pursuit of a stake in Spanish airline Air Europa after failing to reach an agreement with the airline’s holding company, Globalia. The French-Dutch conglomerate confirmed the withdrawal on Thursday, but specific reasons for the breakdown in negotiations remain unclear. It is widely speculated that Air France-KLM rejected Globalia’s $1.1 billion valuation of Air Europa.

Air Europa is currently seeking to raise capital to repay approximately $546 million in COVID-19 pandemic-related loans from the Spanish government. Earlier this year, the airline solicited bids for a roughly 20% stake.

Lufthansa Group and Turkish Airlines remain in the running, with Lufthansa CEO Carsten Spohr acknowledging the complexity of the negotiations. International Airlines Group (IAG), parent company of British Airways and Iberia, previously attempted to acquire Air Europa outright but withdrew due to regulatory concerns. IAG still owns 20% stake of the airline.

Air Europa is Spain’s third-largest airline, trailing Iberia and Vueling. This announcement comes as Air France-KLM also revealed its intention to acquire a majority stake in Scandinavian Airlines (SAS).

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