Portuguese national airline TAP privatisation advances towards its final stages as the government announced that the duel between the aviation giants Air France-KLM and Lufthansa will soon leave just one bidder at the negotiating table.
The deal, which could be finalised within weeks, will see up to 49.9% of TAP’s shares sold, with 5% reserved for its employees.
On Friday, António Leitão Amaro, the Minister of the Presidency, announced that the government would open talks with the two groups competing for a stake in the airline after reviewing the binding offers submitted at the end of July.
A PARPÚBLICA, SGPS, S.A. confirmou hoje que recebeu duas propostas vinculativas, no âmbito da terceira etapa do processo de venda de referência de 44,9% do capital social da TAP, SA, apresentadas pela Air France-KLM S.A. e Deutsche Lufthansa Aktiengesellschaft.#MIH⁰#TAP pic.twitter.com/VRg4nYDE71
— Infraestruturas e Habitação PT (@iestruturas_pt) July 29, 2026
Leitão Amaro said that although the bids were different, their “overall valuation” was pretty close, which, according to him, “justified additional negotiation efforts” with both companies, giving the “bidders an opportunity to improve their offers.
“That is why we decided to launch as final round of negotiations lasting a few weeks,”, he told reporters after a cabinet meeting.
The enthusiasm appears to be shared by both rivals.
Air France-KLM has confirmed its “unaltered interest” in TAP. ‘We look forward to the next phase of the process’, the company wrote in a statement. Its bid includes a strategic plan covering all areas of TAP’s business, including passenger transport, cargo, and maintenance. It is reportedly supported by its transatlantic joint-venture partner, Delta Air Lines.
No Conselho de Ministros de hoje, aprovámos:
— António Leitão Amaro (@Leitao_Amaro) September 4, 2026
✈️ Fase final de negociação da reprivatização da TAP;
♻️ Estratégia TERRA+ para mais reciclagem e menos aterros;
🍇 Apoio extraordinário até 12 M€ para produtores do Douro e fundo permanente para o setor. pic.twitter.com/Rkco84MZIR
For its part, Lufthansa said it was “looking forward to continuing the process constructively in the coming weeks” and reiterated its interest in developing a long-term partnership with TAP Air Portugal.
Both Air France-KLM and Lufthansa submitted their bids to acquire 44.9% of TAP Air Portugal by the 29 July deadline. These were then assessed in depth by Parpública, the state holding company, which submitted its report to the Portuguese government on 1 September.
A third group, International Airlines Group (IAG), the owner of British Airways and Iberia, had initially been interested in the airline, but withdrew in April, stating that acquiring a minority stake did not align with its acquisition strategy.
The partial sale of the Portuguese flag carrier was relaunched in 2025 by Luís Montenegro’s government in an attempt to increase TAP’s international reach, capacity, and competitiveness while maintaining state ownership of the majority stake.
TAP posted losses of €99 million in the first half of 2026, largely due to higher jet fuel prices. The airline had already received billions of euros in state aid during the pandemic.
The national carrier’s most valuable assets are its extensive routes to Brazil and Portuguese-speaking African countries, including Luanda, a major business destination, as well as to the United States. These routes are particularly important for diaspora communities, tourism, and investment.
The Portuguese government is demanding that potential investors support growth across Portugal’s airport networks and strengthen operations and connectivity not only in Lisbon but also in Porto, Faro, the Azores and Madeira.
Leitão Amaro insisted that “the price is an important aspect, but it is not the only one”.
The winning bidder could begin jointly managing the airline with the current board as early as 2026. However, the actual capital injection is not expected until the summer of 2027.
While the Portuguese government would retain its majority holding, it also reserves the right to resell the remaining 50.1% to a strategic investor at a later stage, if deemed appropriate.
