The privatisation of TAP Air Portugal is entering a decisive stage, with the Portuguese government expected to make a final decision on the airline’s future in early September 2026.
According to Essential Business, Air France-KLM and Lufthansa have submitted binding offers for a 49.9% stake in TAP. The airline is currently valued between €1.4 billion and €2 billion, making the transaction one of the most significant developments in Portugal’s aviation sector.
Air France-KLM is among the main candidates to become TAP’s strategic partner. The group’s interest is particularly relevant given the potential for greater integration and cooperation between TAP and the wider Air France-KLM network, which includes KLM Royal Dutch Airlines.
The privatisation process includes the requirement for Lisbon to remain TAP’s operational hub, an important condition for the Portuguese government. The final decision will be taken by the Portuguese Council of Ministers, following the evaluation of the binding proposals.
The outcome of the process could have a significant impact on TAP’s future positioning within the European aviation market and on Portugal’s connectivity with key international destinations.
The privatisation of TAP Air Portugal has reached its decisive stage. According to magazine Essential Business, Air France-KLM and Lufthansa submitted binding offers in late July for up to 49.9% of the airline, with TAP currently valued between €1.4 billion and €2 billion.
Rather than immediately selecting a winner, the Portuguese government announced on 4 September that both bids were too close to call. It has therefore opened a final negotiation round of several weeks, during which both groups can improve their offers for a 44.9% strategic stake (with 5% reserved for employees and the state keeping 50.1%). The final decision will be taken by the Council of Ministers, following this additional round and the required competition clearances.
Air France-KLM — which includes our member KLM Royal Dutch Airlines — remains one of the main candidates to become TAP’s strategic partner. The group’s interest is particularly relevant given the potential for greater integration and cooperation between TAP and the wider Air France-KLM network.
The Portuguese government has made clear that Lisbon must remain TAP’s operational hub, with the airline’s brand and headquarters staying in Portugal. These conditions are central to ensuring that the privatisation strengthens, rather than weakens, Portugal’s international connectivity.
The outcome of this process will have a significant impact on TAP’s future positioning within the European aviation market and on Portugal’s links to key destinations worldwide.
As the decision approaches, we wish all candidates the best of luck, although, of course, we have our favourite!
Sources: Essential Business; Portuguese government announcements; international media reports, September 2026.