Air France-KLM has submitted its final offer for a stake of up to 49.9 percent in TAP Air Portugal. The group has set out a five-point strategy for the Portuguese flag carrier as the country’s government prepares to select a buyer for the minority stake.
The Portuguese government is seeking to sell a minority holding in TAP, with Air France-KLM and Lufthansa Group understood to be the two remaining bidders.
Air France-KLM CEO Benjamin Smith has outlined the group’s strategy in an open letter, focusing on TAP’s Portuguese identity, Lisbon’s role as a hub, international connectivity and the airline’s workforce.
The five areas of the proposal are:
- Maintaining TAP’s identity: Air France-KLM would preserve the Portuguese heritage associated with the airline and its brand.
- Developing Lisbon as a hub: The group proposes making Lisbon its exclusive Southern European hub while strengthening connectivity to Portugal’s islands and its diaspora.
- Expanding transatlantic connectivity: The proposal places emphasis on links with Brazil and the wider Americas. Air France-KLM said its partnership with Delta Air Lines would give TAP customers access to 375 destinations across North and South America.
- Working with TAP’s employees: Air France-KLM would work with TAP’s approximately 9,000 employees as part of the airline’s transformation.
- Combining existing assets: The group plans to combine TAP’s existing assets and network with those of Air France-KLM as part of a wider European airline group.
Air France-KLM’s final offer is also supported by Delta Air Lines and the SkyTeam alliance. The group said its wider proposal covers TAP’s passenger and cargo operations, loyalty programme and Maintenance, Repair and Overhaul (MRO) activities.
Notably, the proposal aims to support TAP’s operations beyond Lisbon. The group currently operates flights to five Portuguese airports: Lisbon, Porto, Faro, Funchal and Ponta Delgada.
Air France-KLM said its capacity in Portugal has increased by 44% since 2019. For winter 2026, it has announced a 12% increase in capacity in Portugal, while Air France, KLM and Transavia together operate up to 346 weekly frequencies across 26 routes connecting Portugal with France, the Netherlands and Belgium during the summer season.
Benjamin Smith, CEO of Air France-KLM said:Our interest in TAP is stronger than ever, and we are excited to present this Final Offer for up to 49.9% of TAP. Over the past four weeks, our team plus our advisors have worked diligently to strengthen our bid, and I am convinced that this revised proposal is the best path forward for TAP, its management, its employees and its customers, as well as for Portugal.
What we present today is an ambitious long-term strategic plan, one we believe best positions TAP for the future and safeguards Portugal’s connectivity and sovereignty. My personal conviction and our guiding principle remain unchanged: if Air France-KLM is selected, TAP and Portugal will win in the global aviation marketplace. Our proposal is designed around a stronger Portuguese flag carrier, with Lisbon as the Air France-KLM Group's exclusive Southern hub with greater connectivity, and a clear intention to create job and value throughout Portugal.
Lufthansa Group has also submitted its final bid for the TAP stake. The German group has not yet published details of its proposal, but said it believes its experience with network airlines would enable it to support TAP’s growth and competitiveness while maintaining its role as Portugal’s flag carrier.
Lufthansa became a 41 percent shareholder in ITA Airways in January 2025 and has since announced plans to increase its stake to 90 percent, subject to the necessary approvals.
Air France-KLM also holds a minority stake in Scandinavian Airlines (SAS), having announced plans in 2025 to increase its ownership in the carrier.
The Portuguese government’s decision on the TAP stake is expected in mid-October.
