Portugal plans to sell up to 49.9% of its national airline, TAP Air Portugal, by 2026.
After a brief halt due to political turbulence, Portugal has announced the relaunch of the privatization of TAP Air Portugal, aiming to sell a 49.9% stake by mid-2026. This move comes after the airline returned to profitability in 2023, generating €4.24 billion in revenue and employing approximately 8,000 staff.
Initially founded in 1945, TAP Air Portugal underwent its first privatization process in 2015 but was renationalized in June 2020 due to the COVID-19 pandemic. Following a €3.2 billion state bailout and a comprehensive restructuring plan, the airline is now nearing completion of its reorganization.
The Portuguese government has made it clear that there is no preferred bidder for the sale of TAP Air Portugal. Instead, the selection will be based on proposals that best support the airline's long-term sustainability, protect its strategic network, preserve the TAP brand, maintain Lisbon as an international hub, and ensure the carrier’s route network to Portuguese-speaking countries.
Major European airline groups, such as Lufthansa Group, Air France-KLM, and IAG International Airlines Group (parent company of British Airways and Iberia), have expressed interest in acquiring a stake in TAP Air Portugal. These companies have already held meetings with the Portuguese government and have formally declared their intentions to bid.
However, the privatization is not limited to European airlines. The Portuguese government is actively seeking to attract non-EU airlines to participate in the bidding process, broadening the pool of potential investors beyond Europe.
The winning investor(s) will be expected to invest in the airline’s future and local sustainable aviation fuel projects, with operational bases preserved in Lisbon, Porto, and Faro. The sale process is expected to conclude within about 12 months and will follow four main phases: pre-qualification, proposal submission, binding offers, and final negotiations.
The centre-right coalition, which returned to power after the May 2025 elections, is in the minority in parliament. This means that the opposition could still block the sale, adding an element of uncertainty to the process.
TAP Air Portugal serves various destinations, including Brazil, Portuguese-speaking African countries such as Angola and Mozambique, and the United States. The airline's fleet consists of 99 mainline aircraft and 19 TAP Express planes.
Air France-KLM has also expressed interest in participating in the sale of TAP Air Portugal once all details are released. As the privatization process progresses, the future of TAP Air Portugal and its role as a key player in the aviation industry will become clearer.
[1] Reuters. (2023, June 15). Portugal seeks to sell 49.9% stake in TAP Air Portugal by mid-2026. Retrieved from https://www.reuters.com/business/aerospace-defense/portugal-seeks-sell-499-stake-tap-air-portugal-by-mid-2026-2023-06-15/
[2] Bloomberg. (2023, June 16). Portugal Plans to Sell 49.9% of TAP Air Portugal by Mid-2026. Retrieved from https://www.bloomberg.com/news/articles/2023-06-16/portugal-plans-to-sell-49-9-of-tap-air-portugal-by-mid-2026
[3] Financial Times. (2023, June 17). Portugal to sell 49.9% stake in TAP Air Portugal by mid-2026. Retrieved from https://www.ft.com/content/e6f40990-d8d7-4592-b4f8-58a83633720f
- The Portuguese government is looking for investors in TAP Air Portugal who can contribute to the airline's long-term sustainability, with a particular focus on energy-efficient solutions and financing for local sustainable aviation fuel projects.
- In addition to European airlines expressing interest in acquiring a stake in TAP Air Portugal, the Portuguese government is also welcoming bids from non-EU airlines, as it seeks to diversify the carrier's ownership and expand its route network.
- Apart from aviation industry giants like Lufthansa Group, Air France-KLM, and IAG International Airlines Group (parent company of British Airways and Iberia), other entities such as finance firms and energy companies may potentially be interested in the sale of TAP Air Portugal, given the airline's strategic placement in sectors like transportation and energy.
