Portugal to Resume TAP Privatization in 2025

By Sergio Goncalves

LISBON (Reuters) – Portugal's government plans to resume the sale of its flag carrier, TAP, in 2025, according to the country's infrastructure minister. This decision follows interest from over a dozen potential buyers.

A prior Socialist administration had approved the privatization of at least 51% of TAP in September 2023. However, the sale was postponed due to a snap election in March, which resulted in a centre-right alliance taking power.

"We will start the process of privatizing the company in 2025 and have listened to all interested parties," stated Miguel Pinto Luz, the infrastructure minister. He mentioned that TAP has strengthened its financial position, achieving operating results comparable to or better than its European competitors.

Pinto Luz assured that, regardless of the final privatisation model, TAP's brand and its Lisbon hub would be maintained. He emphasized that the strategic routes catering to the Portuguese diaspora—including Brazil, Angola, Mozambique, and the U.S.—would not be diminished.

Prime Minister Luis Montenegro, who previously pushed for complete privatization, hinted last month that a partial sale might be considered.

Pinto Luz revealed that there has been significant interest from both national and international parties, including discussions with Air France-KLM, Lufthansa, and British Airways owner IAG.

In September, it was reported that Lufthansa was interested in acquiring a 19.9% stake in TAP, a move that would not require European Commission approval. Meanwhile, Air France-KLM is exploring various options, including the possibility of obtaining a minority stake.