Government considers selling 40 percent stake in Prague Airport by 2028

The Czech government is considering selling a stake in Prague Airport to investors as early as 2028, a move that could raise billions of crowns for future development while keeping the country’s main airport under state control.

Prime Minister Andrej Babiš said the plan would involve an initial public offering (IPO) of Letiště Praha, the state-owned company that operates Václav Havel Airport Prague. The government has not said how the proceeds would be used, but officials have pointed to investment and modernization opportunities.

“We are considering an IPO of approximately 40 percent and we will see how it develops,” Babiš told journalists. “If we proceed with it, and I think we will, we would aim for around 2028.”

Industry and Trade Minister Karel Havlíček said new shareholders could help finance further development of the airport, while Babiš described the facility as a strategic asset.

Prague Airport has been expanding its network of destinations and passenger facilities in recent years, with officials saying additional investment could support future growth

The proposal comes as the government considers broader changes to state-owned companies, including energy company ČEZ. Babiš said a future Prague Airport listing could provide another opportunity for investors looking for Czech shares after the planned ČEZ changes.

However, the plan has already raised questions among airport employees. Prague Airport unions are currently on strike alert over the selection of a new CEO, and earlier comments about partial privatization have added to concerns about the company’s future direction.

Finance Minister Alena Schillerová said after meeting with union representatives that the proposal was not currently active and that any move would require a clear economic justification.

Analysts estimate the sale could bring the government tens of billions of crowns. Earlier estimates suggested the state could receive around CZK 25 billion, although the final amount would depend on the airport’s valuation and market conditions.

Experts have valued the entire company at more than CZK 50 billion, with some estimates reaching CZK 65 billion or higher. They have also warned that selling shares would mean the state gives up part of its future dividend income.

Analysts told the Czech News Agency that a public offering would make economic sense if the money were used for long-term investments or strategic projects rather than short-term budget needs.

A listing would also be a major addition to the Prague Stock Exchange, which has attracted few large new companies in recent years. Experts say Prague Airport could appeal to domestic and international investors, including pension funds and infrastructure funds.

The Finance Ministry has said it is not currently preparing steps to list the airport, saying its priority remains infrastructure development and stable operations. A potential IPO would likely require years of preparation, including financial audits and regulatory approval.

Before any IPO could take place, the government would need to resolve legal issues. Current Czech law requires Prague Airport and related property to remain fully owned by the Czech state or companies completely controlled by the state.