Condor: From State-Supported Rescue to Full Ownership by Attestor
AeroMorning – John Smith — September 25, 2026
From state support to full private ownership
On 25 September 2026, German leisure airline Condor
announced a reorganisation of its shareholder structure following the early
repayment of the state-supported financing it received during its
restructuring. Attestor, a London-based investment firm founded in 2012 by
German investor Jan-Christoph Peters, has exercised its option to acquire the
remaining 49% of Condor. The shares are currently held by SG
Luftfahrtgesellschaft on behalf of the German federal government and the State
of Hesse. Closing is scheduled for 31 August 2027, after which Attestor is
expected to own 100% of the airline.
Attestor is a long-term, owner-operated investment manager
specialising in turnaround situations. Volkswagen reported in 2021 that it
managed approximately €5.5 billion in assets, with most of its capital coming
from US university endowments and family offices. Its investment model involves
taking significant or controlling stakes in companies facing financial or
operational difficulties, providing capital and working with management on
restructuring and transformation, with the objective of restoring value and
ultimately realising a return on the investment.
From Thomas Cook to COVID-19
Condor’s financial difficulties were largely driven by
external shocks rather than structural weakness in its underlying business. The
European Commission found that Condor had generated approximately €530 million
of cumulative profits between 2008 and 2019, with an average annual profit of
€44.1 million, and described the company as having a functioning and profitable
business model before the pandemic.
The first shock was the September 2019 insolvency of Thomas
Cook, Condor’s parent company. The collapse created severe liquidity problems
and led Germany and Hesse to provide a €380 million state-guaranteed bridging
loan.
Condor then sought a strategic buyer. Polska Grupa Lotnicza
(PGL), the parent company of LOT Polish Airlines, agreed to acquire the airline
in January 2020. PGL withdrew from the transaction on 13 April 2020 as the
COVID-19 crisis created financial and economic difficulties for the group. The
withdrawal extended Condor’s insolvency proceedings by seven months and
generated approximately €23.7 million of additional costs.
COVID-19 then brought the airline industry to an
unprecedented standstill. In April 2020, Condor received further public
support, including a €294 million COVID-19 loan and €256 million to refinance
the earlier bridging loan.
Attestor’s 2021 investment
Attestor entered Condor in 2021, acquiring a 51% stake. The
transaction included €200 million of fresh equity capital for Condor and a
further €250 million commitment for long-haul fleet modernisation. The €200
million was fresh equity injected into the company, rather than the announced
purchase price of the 51% stake. The remaining 49% stayed with SG
Luftfahrtgesellschaft, while Attestor received an option to acquire those
shares later.
The investment was consistent with Attestor’s turnaround
strategy. The firm highlighted Condor’s established brand, business model,
competitive cost position following restructuring and potential to benefit from
the recovery in tourism.
A fundamentally transformed fleet
Fleet renewal has been central to the transformation.
Condor completed the renewal of its long-haul fleet in 2024.
It currently operates 18 Airbus A330-900neos, while three additional aircraft
from previous orders are due to be delivered by the end of 2027. In July 2025,
Condor ordered four more A330-900neos. These aircraft will bring the total
A330neo fleet to 25 by 2031. The airline also holds options for four additional
A330neos.
The short- and medium-haul renewal is still underway. Condor
plans to replace its existing fleet progressively with 43 Airbus A32Xneo-family
aircraft by 2029: 15 A320neos and 28 A321neos. Condor currently operates around
60 aircraft overall.
From leisure carrier to Frankfurt hub strategy
Condor is also changing its network model. Following the end
of its Special Pro-Rate Agreement with Lufthansa at the end of 2024, which had
allowed Condor to use Lufthansa’s network of feeder flights to bring connecting
passengers to its Frankfurt long-haul services, Condor has been developing its
own European city network to generate feeder traffic for its long-haul
operations.
Condor says it now carries around 10 million passengers
annually to more than 70 destinations in Europe, Africa, Asia and North
America. Its European city network is being expanded, while new partnerships
are extending its international reach.
In September 2026, Condor announced an interline agreement
with American Airlines, providing connections from more than 150 U.S. cities to
Condor’s transatlantic gateways in Boston, New York JFK, Los Angeles and, from
May 2027, Chicago.
The financial picture
The operational transformation should not be confused with a
complete financial turnaround.
For the year ended 30 September 2025, Condor generated
approximately €2.5 billion of revenue and carried around 9.6 million
passengers. EBIT was approximately €151 million, indicating positive operating
earnings. However, the airline recorded a €167.5 million loss before tax and a
€167.7 million net loss. The substantial difference between operating earnings
and the bottom line reflects the impact of financial and other non-operating
items, including significant financing costs associated with the fleet renewal
programme.
The balance sheet also retained the legacy effects of the
restructuring, including substantial negative equity. At the same time, Condor
subsequently repaid its remaining state-supported KfW financing in 2026,
enabling the shareholder restructuring now announced.
The next phase
The planned August 2027 transaction completes the ownership
transition established in 2021: from 51% ownership during a crisis to 100%
ownership after the repayment of state support and a major fleet and network
transformation.
For Condor, the next challenge is financial rather than
simply operational: converting its modernised fleet, expanded Frankfurt network
and growing international connectivity into sustained profitability and cash
generation.
For Attestor, the acquisition of the remaining 49% would
complete a long-term turnaround investment, moving Condor from a
state-supported restructuring to a fully privately owned phase of its
development.
