IAG, the owner of British Airways and Iberia, officially announced on Friday its interest in Portugal’s TAP airline, in the midst of a privatization process. In this way, IAG joins Air France-KLM and Lufthansa in the fray to invest in the Portuguese company.
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“IAG confirms that it has submitted an expression of interest to Parpública (the Portuguese state property management agency), pursuant to the government’s partial privatization of TAP,” a company spokesperson said in a statement.
“However, several conditions must be met before IAG can submit an investment proposal,” she added, without providing further details.
The Portuguese government intends to complete the privatization of up to 49.9% of the share capital of TAP in 2026, which was renationalized in 2020 to face the consequences of the Covid-19 pandemic.
The airline then received an infusion of €3.2 billion (about R$20.4 billion at the time) of public funds in exchange for the restructuring plan.
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Air France-KLM, which wants to strengthen its ties with South America, and Germany’s Lufthansa, the first European air transport group, also formally expressed their interest this week.
“We believe that TAP has great potential within IAG. Our history shows how we are investing in strengthening our airlines,” stressed a group spokesperson.
In early November, IAG reported a 2.3% decline in net profit in the third quarter, by more than US$1.6 billion (R$8.5 billion, at current prices), with stable revenues of US$10.77 billion (R$57.4 billion), and reported a “certain slowdown” in its US flights.
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An expression of interest is a formal indication that a company would like to participate in a potential deal, without having yet made an offer. The document typically describes the stakeholders’ rationale, financial capacity, relevant experience and any conditions for moving forward, and may also include initial evaluation opinions.
The Portuguese airline stands out among the small group of state-owned airlines still available in Europe, a region currently dominated by three large groups. TAP’s appeal lies in its routes to Brazil, its strong presence in Africa, and its connections with North America. The company carried 16 million passengers in 2024, an increase of 1.6% from the previous year, and has been profitable since 2022.
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