Air France-KLM Becomes the Newest Airline Rival Wanting To Buy TAP Portugal

Air France-KLM has expressed interest in acquiring a stake in Portugal’s flag carrier, TAP Air Portugal.

According to Bloomberg, the airline pair is ready to present its candidacy as part of the TAP privatization process, targeting a sale of at least 44.9% of TAP. Meanwhile, other major airlines are also circling TAP, setting the stage for a competitive bidding process that could reshape transatlantic travel and even the major airline alliances, affecting travel partnerships — and maybe the options you have for using your points and miles.

More recently, the process has moved forward, with Portugal advancing select airline groups to the next phase, where binding offers are expected in the coming months.

Here’s what travelers need to know.

Air France-KLM Wants To Acquire TAP Portugal

Marrying strategy with ambition, Air France-KLM sees TAP as a key asset in connecting southern Europe with South America — especially Brazil.

TAP — with its robust hub in Lisbon (LIS) and a fleet of 81 aircraft — is an emblematic carrier that represents Portugal’s aviation prowess. Air France-KLM CEO Ben Smith stated, “Air France-KLM stands ready to present its candidacy as part of the TAP privatization process,” emphasizing that TAP’s strong brand, image, and fleet would be preserved in line with conditions set by the Portuguese government. To coincide with this newly expressed interest, Smith visited Portugal with French President Emmanuel Macron to discuss a potential deal.

The plan is to boost connectivity within Portugal, including secondary cities, and to enhance the group’s competitive edge in transatlantic routes. This strategic move not only signals a commitment to modernizing European aviation but also positions Air France-KLM to better serve the lucrative market between Europe and South America.

As of now, Air France–KLM is among the airline groups that have advanced to the next stage of the privatization process, where binding bids are expected within roughly 90 days, with a final decision anticipated later in 2026.

Other Airlines Are Also Interested in TAP

However, Air France-KLM isn’t the only player with its sights on TAP. The Lufthansa Group has also expressed interest in acquiring a stake and has also advanced in the process after submitting an initial offer.

International Airlines Group (IAG) — which owns British Airways, Aer Lingus, and Iberia — was previously seen as a contender. However, the company has since decided not to move forward with a bid after evaluating the opportunity.

Currently, TAP is in Star Alliance — the same alliance as Lufthansa and United Airlines. IAG’s airlines, however, are in Oneworld with American Airlines and Alaska Airlines, while Air France and KLM are in SkyTeam with Delta. If another airline takes a controlling stake in TAP, it could shift alliances, which we saw with Lufthansa’s acquisition of Italy’s ITA or the Scandinavian Airlines (SAS) move from Star Alliance to SkyTeam after an investment from Air France-KLM.

When airlines move alliances, it impacts their partnerships — and thus the types of points and miles you can redeem for their flights.

Final Thoughts

As the TAP privatization process unfolds, the stakes are high, and the competition is heating up. Air France-KLM’s proactive bid, underscored by high-level visits, demonstrates its serious intent to expand its transatlantic reach.

Meanwhile, rival interest from the Lufthansa Group underscores the critical importance of TAP to the future of European aviation. The Portuguese government is aiming to sell a 44.9% stake (with a small portion potentially going to employees), while leaving the door open to a larger sale over time.

Ultimately, whichever airline emerges as the dominant partner will likely redefine connections between Europe, South America, and beyond, changing transatlantic travel and the options you have for partner award tickets using your airline miles.