IAG drops out from race for TAP Portugal at bidding deadline

IAG did not submit a bid for up to 49.9pc in TAP Air Portugal by the 2 April 2026 deadline.
Lufthansa Group and Air France-KLM submitted binding offers.
IAG expressed concern about the lack of a clear path to majority ownership.
The Portuguese government plans to retain a 50.1pc stake.
A 5pc stake is reserved for employees in the first tranche.

As widely anticipated, IAG has not submitted a bid for up to 49.9pc in TAP Air Portugal by the 2 April 2026 deadline. The mood in Portugal was not favour of IAG, which owns Iberia and Vuelling, because of their dominant position in adjoining Spain.

The Anglo-Spanish holding did not issue a statement. Multiple news agencies reported that sources confirmed the bid was not submitted. IAG previously expressed concern about the lack of a clear path to majority ownership which the group considered essential in the long term.

Air France-KLM and Lufthansa Group submitted binding offers by the deadline. Lufthansa Group chief commercial officer Dieter Vranckx revealed that the group was interested in TAP despite the ongoing integration of ITA Airways. Air France-KLM CEO Benjamin Smith revealed that TAP is a natural fit within Air France-KLM’s multi-hub strategy.

Dieter Vranckx shared “the group was interested in TAP despite the ongoing integration of recent acquisition ITA Airways.”

Benjamin Smith shared “TAP is a natural fit within Air France-KLM’s multi-hub strategy and our ambition is to strengthen the operations at Lisbon while developing connectivity in other cities across the country including Porto.”