MADRID, Jan 21 (Reuters) - Spanish airline Air Europa

has hired adviser PJT Partners ( PJT ) to raise about 475

million euros ($492 million) in equity and debt, Spanish news

website El Confidencial reported on Tuesday, citing unidentified

industry sources.

Air Europa's management is seeking to raise 240 million

euros ($248.6 million) in fresh equity and to raise 235 million

euros in debt to pay back an outstanding loan granted by the

government during the pandemic, the news website said.

The airline, which is 20%-owned by British Airways owner IAG

Group, could raise the equity through the sale of new

shares equivalent to up to a 20% stake, it added.

Air Europa and PJT Partners ( PJT ) did not immediately respond to

requests seeking comment.

($1 = 0.9654 euros)