Leading European airlines are competing to acquire a stake in Portugal’s national carrier, TAP Air Portugal, as the government prepares the airline for partial privatisation. Air France–KLM and Lufthansa have emerged as front-runners, while the International Airlines Group (IAG), owner of British Airways and Iberia, has also expressed formal interest.
An IAG spokesperson confirmed that the group submitted a declaration of interest to Parpública, the state company managing Portugal’s shareholdings. “Several issues need to be clarified before IAG can propose an investment,” the spokesperson added, signaling that the process is at an early stage.
Interest in TAP has increased after the airline posted a promising financial statement in September, reporting a profit of €55.2 million. The improvement follows an expansion of its transatlantic flight network, which helped boost revenue and restore confidence in the previously struggling carrier.
“We believe that TAP will have significant potential within IAG,” the group said. “Our decentralised model provides industry-leading margins and is in line with the Portuguese government’s ambition to protect TAP. The investment strategy aims to strengthen our airlines, benefitting customers, employees, local economies, and shareholders.”
The government is offering up to 44.9% of TAP’s capital for sale while reserving 5% of shares for airline employees, as required by national privatisation law. The state will continue to hold the remaining stake. Prime Minister Luís Montenegro has said the privatisation will be open to “companies and groups that can make TAP’s operation competitive and sustainable” and expressed confidence in strong interest from potential buyers.
Parpública set a deadline of 22 November for expressions of interest. The company now has until 12 December to submit a report to the Portuguese executive identifying the interested parties and assessing whether they meet the participation requirements. Companies that meet these criteria will then be invited to submit non-binding proposals.
TAP’s position as Portugal’s flagship airline, combined with its recent financial turnaround, has attracted attention from some of Europe’s largest carriers. Analysts note that acquiring a stake in TAP could provide airlines with strategic access to transatlantic routes and strengthen their presence in the Iberian market.
The privatisation marks a significant move for Portugal, which has traditionally maintained majority control over TAP. The government’s decision to open a large minority stake to private investors reflects both a drive for financial sustainability and a desire to modernise operations while preserving employment.
With major carriers officially entering the process, the coming weeks will be crucial in determining which group, if any, will secure a significant role in TAP’s future. The outcome could reshape competition in the European airline industry and influence the strategic direction of Portugal’s flagship carrier.
