Air France-KLM announced on Apr. 2 that it has submitted a formal non-binding offer to acquire a minority stake in TAP Air Portugal, marking the first substantive move in the airline’s privatization process. The Portuguese government is offering a 49.9% stake, with 44.9% available to a strategic investor and an additional 5% reserved for employees.
The sale is significant as it could reshape competition among Europe’s major airline groups, with Air France-KLM aiming to secure a key position ahead of rivals such as Lufthansa Group and International Airlines Group (IAG). The government has indicated that it may consider selling its remaining shares at a later stage, making this initial stake potentially more valuable than it appears.
Parpublica, the state holding company managing the sale, will now review all proposals received by the Apr. 2 deadline and prepare an assessment within 30 days. Selected bidders will then be invited to submit binding offers within another 90 days. Benjamin Smith, CEO of Air France-KLM Group, said: “We firmly believe that the next chapter of the airline’s history should be written as part of the Air France-KLM Group, building on this legacy and taking TAP to the next level. TAP is a natural fit within Air France-KLM’s multi-hub strategy, and our ambition is to strengthen the operations at Lisbon while developing connectivity in other cities across the country including Porto.”
TAP currently ranks among Europe’s top twenty airlines by passenger count and fleet size. In 2025 it carried over 16.5 million passengers and reported €3.28 billion in operating revenue during its first nine months of operation that year; its mainline fleet consists entirely of Airbus aircraft with further orders pending.
Lufthansa has confirmed its intention to submit an offer but faces competing priorities following its recent acquisition of ITA Airways in Italy. IAG reportedly remains hesitant due to Portugal’s decision not to sell a majority holding at this stage.
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Looking ahead, Parpublica will continue evaluating bids before moving toward binding offers later this year—a process expected by observers to conclude during the second half.
