Both airline groups see TAP as a strategically important asset because of its Lisbon hub and dominant position on routes linking Europe with Brazil and other Portuguese-speaking markets.
Air France-KLM CEO Ben Smith said the group had strengthened its proposal during the latest phase of the bidding process and described the revised offer as a long-term plan designed to support TAP’s growth while maintaining Portugal’s international connectivity.
Under Air France-KLM’s proposal, Lisbon would become the group’s exclusive southern European hub.
The Portuguese government has indicated that the successful investor will be expected to put money into TAP, expand strategic routes and develop connectivity not only through Lisbon but also through regional airports.
The French-Dutch group replied that it wants to strengthen TAP presence in Porto and other Portuguese cities.
Air France-KLM says its transatlantic partners, including Delta Air Lines, would also support the expansion of Portugal’s global connectivity. Smith said TAP could potentially gain access to a combined network of 375 destinations.
TAP’s position in the Europe-Brazil market is a key attraction. According to OAG, Lisbon is Europe’s largest gateway to Brazil this winter, with 1.54 million scheduled seats, equivalent to 31.4% of total Europe-Brazil capacity. Madrid follows with 753,300 seats and a 15.4% share, while Paris Charles de Gaulle ranks third with 524,900 seats.
Lufthansa points to ITA integration’s model
Lufthansa Group is also seeking to strengthen its position in southern Europe. The German group confirmed it had submitted an updated proposal to Portuguese state holding company Parpública, saying the offer reinforces its commitment to TAP and Portugal.
Lufthansa pointed to its experience developing network airlines, following its investment in Italy’s ITA Airways, as evidence of its ability to support TAP’s future expansion.
TAP itself is entering the privatization contest from a position of growing capacity.
OAG data shows the airline is scheduled to offer about 8.49 million seats in winter 2026-27, up 5.3% from a year earlier. Across the Europe-Brazil market, capacity is forecast to rise 8.7% to 4.89 million two-way seats.
TAP has slipped behind LATAM into second place but still holds a substantial 23.1% market share. Air France-KLM ranks third with 13.5%, while Lufthansa Group, including ITA Airways, has 13%.
TAP is also expanding its Brazilian network, with Lisbon-São Luís service scheduled to launch in late October.
The Portuguese government expects to announce the winning bidder for TAP Air Portugal by mid-October 2026.
