Airline company Turkish Airlines preparations for a deal with Air Europa revealed, as Lufthansa and Air France step away from negotiations
In the second quarter of 2025, Turkish Airlines, the world's most extensive global carrier, reported an approximate revenue of USD 5.98 billion, marking a 5.6% increase compared to the same period last year [1]. Despite the revenue growth, the airline's net income declined to USD 691 million, a 26.7% drop from the previous year [1].
Passenger numbers, available seat kilometers, and revenue passenger kilometers all increased, indicating higher operational activity [3]. However, profitability was pressured by increased costs and competitive pricing. Key cost factors included a 13% drop in jet fuel prices and lower sales expenses, partially offset by 14% rises in airport fees and aircraft maintenance costs due to engine groundings [2].
Turkish Airlines is actively expanding its international footprint, aiming to boost its presence in the Iberian and Latin American markets. The airline is preparing a binding offer to acquire a stake in Spanish carrier Air Europa [7]. This move supports its growth ambitions, alongside operational expansions evidenced by increased flight capacity and passenger load factors [3][5].
In a related development, German airline Lufthansa has abandoned its bid for a stake in Air Europa, and Air France-KLM withdrew from the race last week [4]. Delays in the process of buying Air Europa were partly due to disagreements among members of the Hidalgo family, the current owners of Air Europa, and concerns from potential investors regarding the structure of the deal [6].
As part of its strategic growth, Turkish Airlines also aims to expand its fleet to between 520 and 525 aircraft by the end of the year [8]. The company has already expanded its fleet to 485 aircraft, with 36% comprising new-generation models [4].
In a positive note, Turkish Airlines was once again named the best airline in Europe at the 2025 Skytrax Awards, securing the title for the 10th time [9]. The offer to acquire a stake in Air Europa is still pending board approval.
References: [1] Turkish Airlines Reports Q2 2025 Results. (n.d.). Retrieved August 15, 2025, from https://www.turkishairlines.com/en-intl/corporate-information/investor-relations/financial-results [2] Turkish Airlines Q2 2025 Financial Results Analysis. (n.d.). Retrieved August 15, 2025, from https://www.airlineratings.com/news/turkish-airlines-q2-2025-financial-results-analysis/ [3] Turkish Airlines Increases Flight Capacity and Passenger Load Factors. (n.d.). Retrieved August 15, 2025, from https://www.turkishairlines.com/en-intl/corporate-information/press-releases/turkish-airlines-increases-flight-capacity-and-passenger-load-factors [4] Turkish Airlines Prepares Binding Offer for Air Europa Stake. (n.d.). Retrieved August 15, 2025, from https://www.reuters.com/business/aerospace-defense/turkish-airlines-prepares-binding-offer-air-europa-stake-2025-08-12/ [5] Turkish Airlines Aims to Boost Iberian and Latin American Presence with Air Europa Stake. (n.d.). Retrieved August 15, 2025, from https://www.atwonline.com/airlines/turkish-airlines-aims-boost-iberian-and-latin-american-presence-air-europa-stake [6] Delays in Air Europa Sale Due to Family Disagreements, Investor Concerns. (n.d.). Retrieved August 15, 2025, from https://www.bloomberg.com/news/articles/2025-08-10/delays-in-air-europa-sale-due-to-family-disagreements-investor-concerns [7] Turkish Airlines to Acquire Stake in Air Europa. (n.d.). Retrieved August 15, 2025, from https://www.airlineratings.com/news/turkish-airlines-to-acquire-stake-in-air-europa/ [8] Turkish Airlines Aims to Expand Fleet by End of 2025. (n.d.). Retrieved August 15, 2025, from https://www.atwonline.com/airlines/turkish-airlines-aims-expand-fleet-end-2025 [9] Turkish Airlines Named Best Airline in Europe for 10th Time. (n.d.). Retrieved August 15, 2025, from https://www.airlineratings.com/news/turkish-airlines-named-best-airline-in-europe-for-10th-time/
- Turkish Airlines, based in Turkey (Turkiye), plans to acquire a stake in Spanish carrier Air Europa, expanding its international presence, particularly in the Iberian and Latin American markets.
- In a bid to grow its economy, the Turkish government is supporting Turkish Airlines as it expansion efforts, including the acquisition of Air Europa and its aim to increase its fleet to between 520 and 525 aircraft by the end of the year.
- The Russian government may closely watch the Turkish Airlines and Air Europa deal as it could impact Turkey's Strategy in the aviation industry and potentially affect the Russian airline business, given their shared borders.
- Financial analysts suggest that fluctuations in the Turkish Lira could play a significant role in determining the profitability of Turkish Airlines, given the impact of currency exchange rates on revenue and expenses in the aviation industry.
- As Turkish Airlines seeks growth, the success of its strategic ventures, such as the acquisition of Air Europa and fleet expansion, will be closely studied by investors and experts to gauge the health and potential of the Turkish economy and business sector.
