Portugal has officially relaunched the privatisation of its national airline, TAP Air Portugal, and aims to sell a 49.9% stake by mid-2026, pending regulatory approval – 5% will be reserved for employees who wish to invest.
The sale is expected to conclude within about 12 months and will follow four main phases: pre-qualification, proposal submission, binding offers, and final negotiations.
Initially founded in 1945, TAP underwent its first privatisation process in 2015. However, the experience was short-lived, and the company was renationalised in June 2020 due to the COVID-19 pandemic, which brought the global aviation sector to a standstill and placed severe financial strain on airlines.
After reporting a €1.6 billion loss in 2021, TAP underwent renationalisation, which included a €3.2 billion state bailout and a comprehensive restructuring plan now nearing completion. The airline returned to profitability in 2023 with a net profit of €177 million, followed by a net income of €54 million in 2024. That same year, TAP generated €4.24 billion in revenue and employed approximately 8,000 staff. Its fleet of 99 mainline aircraft and 19 TAP Express planes – serving short- and medium-haul routes – carried over 16 million passengers.
TAP remains a key player in connecting Portugal to Brazil and Portuguese-speaking African countries such as Angola and Mozambique, as well as the United States, routes it plans to expand in the future.
Prime Minister Luis Montenegro said he was “convinced that there will be many interested parties”.
And indeed, major European airline groups such as Lufthansa, Air France-KLM and IAG (the parent company of British Airways and Iberia) have already made their interest known.
Although Lufthansa declined to comment on the latest developments, its CEO met with Portuguese officials in September 2024, as the German group was reportedly considering acquiring a 19.9% stake, just below the 20% threshold that would trigger EU antitrust rules.
Air France-KLM issued a statement saying it would “participate in this process once all details are released”.
IAG likewise said it “looks forward to reviewing the terms of the potential sale of TAP and will carefully consider all details and conditions of the process as soon as they are made available”.
Infrastructure Minister Miguel Pinto Luz emphasised the government’s aim to forge a partnership that preserves TAP’s brand identity and Lisbon’s role as an international hub, while granting the private partner significant managerial influence and maintaining key global routes. “We believe we can complete the privatisation within a year,” he told reporters, adding that airlines from outside the EU will be permitted to submit bids.
Com toda a transparência, estivemos no Parlamento — como sempre acontece sempre que somos chamados — para esclarecer todas as dúvidas dos portugueses sobre a decisão aprovada ontem em Conselho de Ministros: a venda de uma posição minoritária de 49,9% da companhia aérea TAP.
— Miguel Pinto Luz (@miguelluz) July 11, 2025
A… pic.twitter.com/kikHNfe3OG
Finance Minister Joaquim Miranda Sarmento confirmed that the government has no preferred bidder, stating that selection will depend on the proposal that best supports TAP’s long-term sustainability and protect its strategic network.
Prime Minister Montenegro stressed that the move is financially motivated:
“We’ve already spent a lot of money… we don’t want to keep pouring money into a bottomless pit. “
He nevertheless added that the government reserves the right to withdraw from the sale if the proposals do not meet its expectations and needs.
The privatisation process was first initiated in 2023 under the leadership of former Prime Minister António Costa, but it was suspended amid political turbulence. The centre-right coalition returned to power after the May 2025 elections, but it remains in the minority in parliament, meaning the opposition could still block the sale.
