IAG sees TAP as a success within the group, “if the terms are right”

IAG — which controls Iberia and British Airways, among other airlines — believes that TAP can be successful as part of the group after privatization, provided that the terms of this process are appropriate, an official source said on Friday.

In early July, Luís Montenegro’s government moved forward with the privatization of up to 49.9% of TAP’s capital. The decision “incorporates the opening of the capital to one or more investors up to 44.9% and 5% to employees”, according to the prime minister, who also assured that the process safeguards the Lisbon hub and that if the government’s objectives are not met, the process can be suspended without any compensation.

“IAG welcomes the announcement of the launch of the TAP privatization process”, the official source said in a statement. “If the terms are right, we believe TAP can succeed as part of IAG’s distinctive and proven model.”

On Thursday, Air France-KLM reaffirmed its interest in acquiring a stake in TAP, assured that it continues to “study” this opportunity, but explained that it will always be a “business decision” – and if the Franco-Dutch company finds “too much risk”, it will not even enter the race.

Also on Thursday, Carsten Spohr, CEO of Lufthansa, said that TAP remains “an interesting option” for the German airline, but clarified that it is in no rush with the process, as it is focused on integrating ITA, the Italian carrier in which it acquired a 41% stake last year.

Aer Lingus is a “clear example”

The official IAG source added that IAG’s “financial strength” allows it to “modernize [its] fleet, invest in new-generation aircraft and essential products, and lead the industry in the adoption of SAF (Sustainable Aviation Fuel)”.

It also stressed that “Aer Lingus’ success since joining IAG in 2015 is a clear example of what can be achieved”, noting that the Irish airline “has strengthened its brand and more than doubled its long-haul capacity at its Dublin hub.”

Aer Lingus currently has 20 destinations in North America, compared to just four in 2013. “This commitment and growth have sustained the increase in the number of jobs at Aer Lingus and enabled a transformation program that benefits customers”, he said.

Revenue up 8%

IAG announced on Friday an 8% increase in revenue in the first half of the year to €15.906 billion, reflecting strong demand for its network and brands. Operating profit before extraordinary items in the first half of 2025 increased by 43.5% to €1.878 billion, driven by revenue, fuel, and currency benefits, while second-quarter operating profit before extraordinary items increased by 35.4% to €1.680 billion.

Luis Gallego, CEO of IAG, described the performance as “solid” and said it reflects “the resilience of travel demand and the success of the company’s ongoing transformation”.

“These results give us confidence that we will achieve good earnings growth and margin improvement for the full year, enabling us to create value for our shareholders through our sustainable dividend and share buyback program”, he concluded.