IAG Joins Lufthansa and Air France-KLM in Bidding for Stake in TAP Air Portugal

The International Airlines Group (IAG), which owns British Airways, Iberia, Aer Lingus, and Vueling, confirmed on Friday that it has officially expressed interest in acquiring a stake in TAP Air Portugal. This move aligns IAG with other European airline giants Lufthansa and Air France-KLM, all vying to invest in the Portuguese national carrier.

IAG released a statement indicating it had submitted a statement of interest to Parpublica, the Portuguese state holding company overseeing TAP. "Several conditions will need to be resolved before IAG can advance a formal investment proposal," the spokesperson explained.

Portugal announced in September its intention to privatize nearly half (49.9 percent) of TAP Air Portugal, inviting major international airlines to participate. TAP, one of Europe’s few remaining state-owned airlines, was re-nationalized in 2020 as a response to pandemic-related financial losses. The carrier’s strategic routes to Brazil and Portuguese-speaking African nations make it an attractive acquisition target for global airline groups.

Besides British Airways and Iberia, IAG’s portfolio includes Irish carrier Aer Lingus and Spain’s Vueling. Lufthansa and Air France-KLM have also entered the competition, seeking to strengthen their networks, particularly toward South America.

Highlighting its optimism, the IAG spokesperson said, "We see significant potential for TAP within the IAG group," citing the company’s decentralized operational model and its ability to maintain industry-leading profit margins. The statement emphasized IAG’s commitment to investing in its airlines for the benefit of customers, employees, local economies, and shareholders.

Despite a 2.3 percent decline in third-quarter profits to 1.4 billion euros, partly due to reduced demand for U.S. flights, IAG remains focused on strategic growth. Meanwhile, TAP reported a net profit of 125.9 million euros for the third quarter, underscoring its improved financial performance amid the recovery.

The bidding process marks a significant step in reshaping the European aviation landscape as TAP prepares for partial privatization.