Ahead of its second quarter results, International Airlines Group (IAG) has terminated its agreement to acquire Air Europa. The airline had signed an agreement with Air Europa’s parent company Globalia on February 23, 2023, to acquire an 80% stake in the airline.
IAG said the board of directors had concluded that in the “current regulatory environment, it would not be in the best interests of shareholders to continue with the transaction.”
Globalia will receive €50 million from IAG as a break fee as a result of the termination.
“We believe this decision is in the best interests of our shareholders,” said IAG CEO Luis Gallego. “IAG remains committed to its strategy, including competing effectively from its Madrid hub.
“This is a strategy which is delivering strong results. We will continue to develop our presence in Madrid so that the hub can develop as a rival to Europe's largest hub airports.”
IAG will continue to hold its 20% minority stake in the airline, which it acquired on August 16, 2022.
In its second quarter 2024 results, the group reported total revenues of €8.3bn, up from €7.7bn in the same period last year. Its operating profit was down marginally from €1.25bn to €1.24bn in the quarter. Its profit after tax was down from €1bn to €909 million in the quarter.
IAG terminates Air Europa acquisition
