Brussels gives more time to SATA – Azores Airline selloff deadline extended by end of 2026

The European Commission has officially postponed a restructuring plan for airline SATA to the end of 2026.

Upon Portugal’s request, the Commission agreed to an extension until December 31 2026 of the deadline for SATA to divest a majority shareholding (51%) of Azores Airlines for the carve-out and sale of its ground handling business unit.

This is because the airline group controlled by the Azores Regional Government failed to sell Azores Airlines in 2025, as had been initially expected.

“At the request of Portugal,, the Commission has agreed to the postponement of the deadline by which SATA’s 51% majority stake in Azores Airlines should be sold,” states a communiqué published by Brussels on Monday, January 5.

The sale of the majority position in Azores Airlines, a company that makes direct links to the rest of Europe, was one of the conditions from Brussels to approve “support in restructuring the airline given by Portugal to SATA in June 2022 and which amounted to a €453.24 million bailout.

SATA (Azores Airlines) is being restructured because it faced severe financial losses and insolvency, necessitating a large state aid package from Portugal, with the European Commission requiring divestments (selling a majority stake in Azores Airlines and its ground handling unit) by 2026 to limit competition distortion and ensure the airline’s long-term viability and its crucial role in connecting the Azores.