Lufthansa Considers Strategic Investment In Air Europa: Report

Deutsche Lufthansa DLAKY is reportedly in talks with Spanish airline Air Europa to acquire a potential minority stake.

Air Europa, 20% owned by International Consolidated Airlines Group BABWF, previously saw IAG abandon plans for full ownership due to regulatory hurdles, Reuters reported.

The report highlighted that the Spanish airline is seeking funding to repay pandemic-era government loans totaling 475 million euros ($491.8 million).

Reuters cited Spanish newspaper El Economista that discussions with Lufthansa include the possibility of the German airline acquiring a 20% stake in Air Europa.

The report further mentioned that last November, Air France-KLM also expressed interest in acquiring a stake in Air Europa.

Price Action: DLAKY shares closed higher by 2.57% at $6.59 on Monday.

Image: Shutterstock/ Markus Mainka.