Air France-KLM Submits Formal Bid for 44.9% Stake in TAP Air Portugal

Air France-KLM submitted a non-binding proposal on April 2, 2026, to acquire a 44.9% stake in TAP Air Portugal, becoming the first bidder to formally announce its offer ahead of that day's deadline for submissions to Parpública. The Franco-Dutch airline group, whose reference shareholders include the French and Dutch states, framed the move as a strategic priority, with Chief Executive Officer Benjamin Smith declaring that the next chapter of the Portuguese carrier's history should be written within the Air France-KLM Group. The proposal targets a minority stake of up to 44.9% of TAP's capital, positioning the group as a frontrunner in one of Europe's most closely watched aviation privatizations. Lufthansa confirmed it would also submit a proposal before the deadline, while IAG, the owner of British Airways and Iberia, faced uncertainty after Bloomberg reported that a withdrawal was under consideration, though an IAG official source indicated the group had until the deadline to make its decision.

Lisbon eyed as Air France-KLM's sole Southern European hub Air France-KLM laid out an ambitious strategic rationale for the acquisition, centering on Lisbon's geographic position as a gateway between Europe, the Americas, and Africa. The group stated that Lisbon would become its unique hub in Southern Europe, offering connectivity to Brazil — described as a key market for both TAP and Air France-KLM — and to the African continent. Benjamin Smith emphasized that TAP fits perfectly into the group's multi-hub strategy, with plans to reinforce operations in Lisbon while simultaneously developing connectivity in other Portuguese cities, including Porto. The group also highlighted its existing partnerships with Delta Air Lines and Virgin Atlantic through a transatlantic joint venture, arguing that TAP's integration would extend those networks to Portuguese destinations. Air France-KLM further pledged to maintain the TAP brand and safeguard connectivity for the Portuguese diaspora, in line with requirements set by the Portuguese government. The group noted it has operated in the Portuguese market since 1940 and described its experience working alongside state shareholders as a competitive advantage in the privatization process.

„We firmly believe that the next chapter of this airline's history should be written as part of the Air France-KLM Group, building on this legacy and taking TAP to a new level. TAP fits perfectly into Air France-KLM's multi-hub strategy, and our goal is to strengthen operations in Lisbon, while developing connectivity in other cities in the country, including Porto. We look forward to the next steps of this privatization process.” — Benjamin Smith via Observador

Lufthansa in, IAG's participation still uncertain at deadline Lufthansa's head of strategy, Tamur Goudarzi Pour, had previously stated that the German group would not withdraw from the race and would submit a non-binding proposal, arguing that Lufthansa represented the partner with the greatest capacity to develop TAP. IAG's position remained the subject of speculation as the deadline approached, with Bloomberg having reported that a non-participation scenario was on the table, though the group had not officially confirmed any withdrawal. The Portuguese government, led by Prime Minister Luís Montenegro, set a clear condition for all bidders: any successful acquirer must commit to developing operations across all of Portugal's airports, not only the Lisbon hub, with Porto and Faro specifically cited. Air France-KLM addressed this requirement directly, stating that Portugal as a whole would benefit from increased air connectivity under its ownership. The group also argued that TAP would gain from economies of scale and global reach through integration into a larger organization covering Air France, KLM, and Transavia.

TAP Air Portugal, the Portuguese flag carrier, has been a member of the Star Alliance since 2005 and operates an average of 2,500 flights per week to 90 destinations across 34 countries. The airline built its reputation on routes connecting Portugal with Brazil and the Portuguese-speaking world in Africa, markets that remain central to its commercial identity. The privatization process reflects a broader European trend of governments reducing direct ownership in national carriers following the financial pressures of the pandemic era. Air France-KLM itself has operated in the Portuguese market since 1940, giving the group a long-standing commercial relationship with the country predating TAP's current form.

44.9 (%) — stake Air France-KLM seeks in TAP Air Portugal

TAP's 81-year legacy cited as core asset by bidder Air France-KLM's public statement repeatedly invoked TAP's 81-year history as evidence of the airline's accumulated brand value and network strength. Benjamin Smith described TAP as having built a solid hub in Lisbon, a strong brand, and a unique offering connecting thousands of ports with high-quality service. The group argued that a smooth integration into a larger, robust organization would strengthen TAP's competitiveness rather than diminish its identity. Air France-KLM also indicated that cooperation with TAP would extend across all business areas, including a focus on decarbonization, though details of that commitment were not fully elaborated in the statements released on the deadline day. The group's emphasis on maintaining the TAP brand and Portuguese heritage appeared calibrated to address political sensitivities around the privatization of a national carrier. With non-binding proposals now submitted, the process moves toward binding offers, where the Portuguese government's conditions on airport coverage and connectivity will carry greater legal weight for any prospective buyer.