Turkish Airlines is preparing a binding offer for a minority stake in Air Europa, pending board approval, airline executives confirmed this week during an earnings call.

In a public disclosure statement on Thursday, the carrier said the decision follows a feasibility study that deemed the investment to be ¡°in line¡± with the company¡¯s long-term growth strategy.

Turkish Airlines pointed to Air Europa's presence in the Iberian Peninsula and Latin American market as ¡°enabling scaled and accelerated growth¡±, as well as the potential to create ¡°a leverage effect¡± through subsidiaries and joint ventures.

The Turkish carrier first expressed interest in Air Europa in June after holding non-binding talks. ?

The move comes after European aviation giants Lufthansa and Air France-KLM both abandoned plans for a stake in the Spanish carrier. British Airways parent IAG, which has an existing 20 per cent stake in Air Europa, also backed out of plans to take a majority share in the carrier last year after multiple failed attempts.

Turkish Airlines reported a 7.4 per cent year-on-year increase in passenger revenue for the year¡¯s second quarter, while total revenues rose by 5.6 per cent year-on-year to reach $5.9 billion. The carrier reported an operating profit of $706 million for the quarter, up 19.5 per cent compared to the same period a year prior.