Deutsche Lufthansa ( DLAKF ) 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.