Air France-KLM’s bid for Portugal airline takes flight

The race to secure a large chunk of Portugal’s flagship airline TAP has stepped up after Air France-KLM confirmed it had lodged its interest.

The Portuguese government confirmed in July it wanted to sell a 49.9% stake in the company, a move which was likely to trigger interest from a number of big names.

Bidders must have annual revenues in excess of €5 billion, with 5% of the stake available being reserved for TAP staff.

Speaking to Bloomberg this week, Air France-KLM chief executive Ben Smith confirmed it has “officially submitted our expression of interest”.

He added, were his firm successful, the TAP branding would remain and underlined a commitment to expand its fleet and routes.

TAP currently serves more than 85 destinations in more than 30 countries. It has well-established strong links to the lucrative South American market, as well as connections to Africa. It carried 16 million passengers in 2024.

However, the company is expected to face competition for the stake. Among those also expected to lodge expressions of interest are Lufthansa and the International Airlines Group (IAG) which owns the likes of British Airways and Iberia.

Those expressing interest, and fitting the criteria, will be invited in January to submit non-binding offers by the start of April. A final decision and binding bids are expected later in 2026.

Paul Stannard, chairman and founder of Portugal Pathways, said: "This is an important deal for Portugal. TAP needs to continue to grow as the nation's flagship carrier, so choosing the right partner, to benefit Portugal, is important. We wait with interest to see how this unfolds."

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