Greek carrier Aegean Airlines said on Monday it would start flying to Madrid and Vienna in December.
Aegean, which competes with recently privatised Olympic Air, said it would start a daily service to the Spanish capital from December 1.
A five flights a week service to Vienna will begin December 10.
"Although conditions in the European air transport market are still difficult, we remain focused on implementing our strategic targets... gradually completing the coverage of our European network," managing director Dimitris Gerogiannis said.
Aegean, which started flights to Istanbul this month, is also bidding in the Greek government's tender of state-subsidised routes, seeking to serve 17 mainly island destinations.
The airline carried 2.9 million passengers in the first half, an increase of 9 percent year-on-year.
*Reuters