Published by Global Banking & Finance Review®
Posted on January 21, 2025
2 min readLast updated: January 27, 2026
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Air Europa hires PJT Partners to raise funds through debt and capital increase to repay €475M owed to the government.
MADRID/LONDON (Reuters) -Spanish airline Air Europa has hired adviser PJT Partners to raise cash through debt, and possibly a capital increase, to pay back debt owed to the government, a spokesperson for the airline said on Tuesday.
The airline, which is 20% owned by British Airways owner IAG Group, is seeking funds to pay an outstanding package of loans worth a total 475 million euros ($491.8 million) granted by the government during the pandemic, the spokesperson said.
Air Europa would first raise money through a capital increase of potentially up to 20%, and then new debt to pay the government loans, according to a source with knowledge of the talks.
Spanish website El Confidencial, which was ahead with the news, said that 20% of Air Europa could be valued at 240 million euros.
The Spanish airline said last November that several parties, including Air France-KLM, had expressed an interest in acquiring a 20% stake in the company.
The spokesperson said on Tuesday no decision had been made on whether the operation would include debt, equity or both, nor their respective amounts.
PJT Partners did not immediately respond to requests seeking comment.
($1 = 0.9659 euros)
(Reporting by Inti Landauro and Andres Gonzalez; Editing by Charlie Devereux, David Latona and Jan Harvey)
The article discusses Air Europa hiring PJT Partners to raise funds to repay government debt.
Air Europa owes €475 million to the government.
IAG Group owns 20% of Air Europa.
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