IAG, the parent company of British Airways and Aer Lingus, has officially submitted a bid to acquire a stake in TAP Air Portugal, entering a competitive race alongside Lufthansa and Air France-KLM to secure a share in the Portuguese carrier.
A spokesperson for IAG confirmed the move, saying the company had submitted a statement of interest to Parpublica, the state holding company that owns TAP. “Several terms would need to be addressed before IAG could propose an investment,” the spokesperson added.
The Portuguese government announced in September that it plans to privatise a 49.9% stake in TAP, seeking a major international airline to take majority control. TAP was renationalised in 2020 after heavy losses during the Covid-19 pandemic, and it remains one of the few state-owned carriers in Europe. The airline’s network, including routes to Brazil and Portuguese-speaking countries in Africa, has made it an attractive target for international investors.
IAG operates a portfolio of airlines that includes British Airways, Iberia, Aer Lingus, and Vueling. The group emphasized TAP’s strategic potential, highlighting its “decentralised model” and ability to deliver “industry-leading margins.” The spokesperson said the company’s experience in investing to strengthen airlines benefits not only customers and shareholders but also employees and local economies.
Europe’s two other major airline groups, Lufthansa and Air France-KLM, are also seeking to expand their presence in South America through TAP. Together with IAG, these three groups have emerged as the dominant players in the European aviation sector in recent years.
TAP’s financial performance has shown signs of recovery. The airline reported a net profit of €125.9 million between July and September, reflecting growing demand on key international routes. Meanwhile, IAG posted a slight decline in third-quarter profits, down 2.3% to €1.4 billion, citing slower ticket demand on flights to the United States.
The privatization process is part of Lisbon’s broader plan to attract foreign investment into its aviation sector while maintaining TAP’s operational independence. Analysts say a strategic partnership with an international carrier could enhance TAP’s network and operational efficiency, boosting competitiveness in both European and long-haul markets.
Bidders are expected to negotiate terms with the Portuguese government in the coming months, with the final selection likely to focus on airlines with the financial strength, operational experience, and strategic vision to support TAP’s continued growth.
For IAG, the move represents an opportunity to expand its footprint in Portugal and Latin America while integrating TAP into its portfolio of European carriers. The decision will be closely watched by investors and industry observers, given the airline group’s influence and the strategic importance of TAP’s network in transatlantic travel.
