Air France-KLM and Lufthansa submit bids as TAP Air Portugal privatisation accelerates

Air France-KLM and Lufthansa have both submitted non-binding offers for a minority stake in TAP Air Portugal, marking a key step in the ongoing privatisation process of the Portuguese flag carrier.

In a statement released on April 2, 2026, Air France-KLM confirmed it had formally submitted a non-binding offer to Parpública, expressing strong interest in becoming a strategic partner in TAP’s future development.

“We firmly believe that the next chapter of the airline’s history should be written as part of the Air France-KLM Group,” said CEO Benjamin Smith, highlighting Lisbon’s potential as a Southern European hub with strong connectivity to the Americas, Africa, and Brazil in particular.

German airline group Lufthansa also confirmed it has submitted a non-binding bid for TAP as part of the same privatisation process, according to Portuguese media reports.

Lufthansa, which already owns airlines including Brussels Airlines, Austrian Airlines, Swiss, and recently acquired a majority stake in ITA Airways, is aiming to strengthen its European network strategy further by expanding its presence in Portugal.

Industry sources indicate that International Airlines Group (IAG), parent company of British Airways and Iberia, has also shown interest, although its final participation in the bidding process remains uncertain.

Both Air France-KLM and Lufthansa see TAP’s Lisbon hub as strategically important for transatlantic connectivity, particularly for traffic between Europe, South America, Africa, and North America.

Air France-KLM says TAP would fit into its multi-hub strategy, complementing existing operations in Paris and Amsterdam while expanding connectivity across Southern Europe.

Lufthansa, meanwhile, has previously described Lisbon as a potential “Atlantic hub” within its broader network structure, reinforcing its ambition to grow long-haul connectivity through Southern Europe.

The Portuguese government is aiming to sell up to 49.9% of TAP, with 44.9% allocated to private investors and 5% reserved for employees. The privatisation process is expected to continue into 2026, with the government seeking a strategic partner to strengthen the airline’s long-term competitiveness.

TAP currently operates around 100 aircraft and employs approximately 7,700 staff, including 1,200 pilots. The airline reported a net profit of €125.9 million in the third quarter of 2025, although performance earlier in the year was weaker.

With multiple major European airline groups now formally engaged in the process, the future ownership structure of TAP is set to become one of the most closely watched airline consolidation moves in Europe.

Further steps in the privatisation process are expected in the coming months as Portugal evaluates the submitted proposals.