Portugal’s government relaunched the privatization of TAP Air Portugal in summer 2025. The plan calls for sale of a 44.9 percent stake, with a possible later move to majority control. Employees would receive a 5 percent holding, leaving the state with 50.1 percent. Both Air France-KLM and Lufthansa Group have now submitted binding offers. IAG had shown interest but later withdrew. TAP reported a 1.6 billion euro loss in 2021 after the pandemic, followed by a 3.2 billion euro government investment. The carrier posted profits of 65.6 million euros in 2022, 177.3 million euros in 2023, 53.7 million euros in 2024 and 4.1 million euros in 2025. Air France-KLM states that TAP would serve as its Southern European hub and join the SkyTeam transatlantic joint venture along with codeshare and loyalty ties to Delta. Air France-KLM CEO Ben Smith said the proposal is a strategic long-term plan for TAP and Portugal. Lufthansa Group points to its record with SWISS, Austrian, Brussels Airlines and ITA Airways. Regulatory approval remains a central step for any European airline acquisition.
