German state exits Condor as Attestor buys out remaining stake

British financial investor Attestor is to take full ownership of Germany's second-largest airline Condor by the end of August 2027, buying out the remaining 49% stake currently held by the federal government and the state of Hesse, Condor said on Friday.

The majority shareholder will exercise a purchase option that was agreed when Attestor first invested in the airline in 2021, Condor said in Frankfurt. "Completion of the transaction (closing) is scheduled for August 31, 2027," the company said in a statement.

The German federal government and the state of Hesse had stepped in during the crisis following the insolvency of Condor's then parent company Thomas Cook and the impact of the Covid-19 pandemic.

Earlier this year, Condor repaid the state aid in advance of the deadline. The aid had taken the form of a €175 million ($200 million) loan from state development bank KfW. Condor is now restructuring its shareholder structure. 

No further details were given, including on the financial terms of the deal.

Condor rebuilds business - but conditions remain difficult

In recent years, the airline has substantially restructured its business. It has renewed its long-haul fleet, is expanding its short and medium-haul fleet and is developing its city flight network as a feeder service for its Frankfurt hub.

Its own feeder connections are important for Condor, as Lufthansa has terminated its previous feeder agreement with the airline. Condor also moved back to Frankfurt Airport after having relocated its headquarters to the suburb of Neu-Isenburg for cost reasons.

Attestor is taking over the remaining Condor shares in difficult economic conditions, however. In the most recent financial year 2024-25, which ended on September 30, earnings before interest and taxes (EBIT) rose by a quarter to €151 million, Condor said in April. Passenger numbers also climbed 13% to just over 9.6 million.

The net loss, however, grew by 13.7% to €110.43 million. The reasons cited were internal loan interest payments to Attestor and high leasing valuations on the airline's mostly still very new aircraft.

Rising fuel prices following the Iran war are also weighing on the airline industry. Condor chief executive Peter Gerber said at an aviation event in Frankfurt in late August that air passengers should expect ticket prices to continue rising, pointing to the situation in The Gulf.