Lisbon, April 30, 2026 (Lusa) - Air France-KLM says the conflict in the Middle East does not change the bid value for Portugal’s flag carrier, TAP, for now, despite fuel cost pressure.
Benjamin Smith, the group’s CEO, told journalists this on Thursday during a conference call on Q1 results.
When journalists asked whether the war and energy crisis might prompt the group to review the bid for the airline, specifically regarding its value, the manager replied, "At this stage, no."
The aviation sector faces pressure from rising fuel costs due to the Middle East conflict, aircraft delivery delays and geopolitical uncertainty.
Smith called IAG's (International Airlines Group, which owns British Airways and Iberia) exit from the race "positive," but noted that Lufthansa remained "just as interested" as Air France-KLM.
"It is positive," he said. "Going from three to two is definitely positive," he added, noting this change does not alter the proposal they intend to submit for TAP.
At the same conference, Air France-KLM said it would maintain its planned summer schedule despite sector pressure. "We will fly the full schedule this summer, perhaps with a cancellation here and there," Benjamin Smith said.
Air France-KLM also acknowledged that it can only pass on part of the increased fuel costs to ticket prices.
"We are in a business of supply and demand," he said, noting that the ability to pass on costs varies by network and competition levels.
Regarding fuel supply, he expects no short-term problems at major European bases, specifically Schiphol in the Netherlands and Paris-Charles de Gaulle in France.
The group said it sees no supply constraints in the Netherlands as the country is a net exporter of jet fuel. In Paris-CDG, the company said a direct link exists to the supply terminal.
Outside Europe, Air France-KLM sees no pressure on existing flights at this stage. The group said it only received occasional requests not to add flights on certain Asian routes.
The company also dismissed the need for public support similar to that received during the pandemic, saying the current situation differs from the Covid-19 period.
"We are not in the same situation as we were during Covid-19," he said, noting that planes continue to fly and demand remains.
Air France-KLM and Lufthansa are the two contenders in the race to privatise, after IAG failed to submit a proposal.
Portugal's government wants to sell up to 49.9% of the company’s capital, with 44.9% for a major investor and 5% reserved for workers. The process will consider price, the industrial plan, connectivity and the buyer's financial capacity.
The cabinet expects to complete the sale in 2026 and may decide on the buyer during a cabinet meeting in late August.
Air France-KLM recorded a Q1 loss of €287 million, slightly lower than the €292 million in the same period of 2025, while revising down its 2026 full-year forecasts.
SCR/LYT // ADB.
Lusa
