Is there a breakdown in relations between Air Europa and Etihad Airways

Air Europa’s international expansion ambitions in the Middle East have suffered a major setback as the Spanish airline, owned by the Hidalgo family, prepares to definitively sever its strategic alliance with Etihad Airways.

An internal message sent to the company’s scheduling committee reveals that it is now highly likely that the direct route between Madrid and Abu Dhabi, currently suspended due to the geopolitical situation and the war, will never be reinstated by the Iberian carrier.

This codeshare and crew lease agreement, signed with great fanfare just a year ago and hailed at the time as an ideal gateway by President Juan José Hidalgo, has run into deep economic and operational disagreements that have strained relations between the two partners by 2026.

As early as last March, Air Europa formally notified the Emirati airline of its intention to terminate their contract unless the financial terms were revised favorably. The Spanish carrier considered the route entirely unprofitable due to Etihad’s disproportionate demands regarding crew sizes and the catering standards imposed on board.