Air Europa hires PJT Partners to increase capital and repay debt; El Confidencial reports

Spain’s Air Europa has hired the services of PJT Partners to raise €475 million ($492 million) in order to repay a loan provided by the Spanish government in November 2020, reported Spanish media outlet El Confidencial on January 21, 2025.

The Spanish outlet reported that sources indicate PJT Partners is collaborating with Air Europa’s senior management on two operations. The first involves securing an investor to support a new capital increase of approximately €240 million ($248.6 million).

Additionally, a second operation seeks to reopen access to credit lines, aiming to obtain €235 million ($243.1 million) to prepay “special financing” provided by the Spanish state-owned holding company Sociedad Estatal de Participaciones Industriales (SEPI). The loan was used to reduce the impact of lockdowns during the pandemic, the report added.

A spokesperson for the airline confirmed reports. “Air Europa is working with PJT to consider different possibilities to pay back the debt with SEPI,” the spokesperson said. “That is our main objective right now. Javier Hidalgo is leading this operation.”

The article also noted that PJT Partners has approached various potential investors to acquire up to 20% of Air Europa’s capital through newly issued shares. These include private equity funds and airlines such as Air France-KLM, Lufthansa, Etihad, and Delta.

The airline, 80% owned by the Hidalgo family, aims to complete this phase of the global transaction by the summer.