Air Europa and Iberia are engaged in a lengthy process aimed at forming a new national airline powerhouse. The roadmap driven by IAG focuses on securing clearance from competition authorities and ultimately completing a full ownership integration. In 2022, the plan envisaged Air Europa holding a 20% stake in Iberia, with full control of the combined group expected by the end of 2023. As this process progresses, Air Europa seeks to revive flight operations and network activity that were reduced during the pandemic years.
Air Europa plans to broaden its route network this summer, reaching up to 35 European and domestic destinations, a slight trim from the pre-pandemic peak. In addition, it will serve 20 destinations in Latin America and the United States, with a small reduction from 2019 figures. The Globalia group announced that Madrid–Athens and Madrid–Sicily routes will resume this summer, offering two weekly flights in June and July respectively.
Air Europa emphasizes a stronger European presence this season and the consolidation of the expansion strategy launched last spring. The company highlighted a notable rise in sales since late last year, supported by the relaunch of routes. The long-term objective is to restore the pre-pandemic long-haul network by year’s end and maintain the same 23 destinations in the Americas that existed before the disruption.
Looking ahead, the fleet will grow in the upcoming months with eleven new aircraft joining the mix, including six Boeing 787 Dreamliners and five Boeing 737s. This fleet consolidation aims to boost seating capacity, optimize flight frequencies, and expand both leisure and business class offerings for travelers.
After months of negotiations and renegotiations that nearly stalled earlier this year, IAG and Iberia finalized a new transaction framework. This intermediate step is designed to facilitate the potential merger between Iberia and Air Europa and move the process forward toward a more integrated corporate structure.
Under the current plan, the Iberia-IAG umbrella would provide Globalia with a 100 million euro loan, with an option to convert up to 20% of Air Europa into an equity stake. The strategy envisions IAG controlling the 20% stake within six months and, by the end of next year, achieving full ownership of Air Europa and the combined entity, subject to regulatory approvals. The negotiations reflect the core aim of aligning Iberia, British Airways, Vueling, Aer Lingus, and Level under a unified group structure.
In late 2019, the original agreement contemplated an acquisition of Air Europa valued at about 1 billion euros. The subsequent pandemic dramatically altered the financial landscape, reducing the price to roughly 500 million. The overall plan has since been redesigned to provide more time for restructuring and to address European Commission concerns about approving the union of the two groups, ensuring a smoother path to a unified operation.