International Airlines Group (IAG) has agreed to buy the remaining 80% of Air Europa that it did not previously own, subject to regulatory approval which is expected to take up to 18 months. It is reported IAG has agreed to pay 400 million euros which is close to 424 million USD.
In August 2022, IAG paid 100 million euros for a 20% stake in Air Europa.
IAG has stated that the acquisition will help them improve in the Latin America market as well as to be able to expand in Asia while essentially allowing Madrid to compete with other major European gateways.
The talks of purchase have been going on since the beginning of the pandemic but came to a halt during the pandemic before resuming in March of 2022. The original plan was to remove Air Europa from the SkyTeam alliance and convert the loyalty program over to Avios, though no official plans have been announced. IAG stated that the Air Europa brand will remain but be under the management of Iberia.
IAG also owns Aer Lingus, British Airways, Iberia, Vueling and other airlines throughout the European region.