Portugal's government has selected Lufthansa Group to buy a 44.9% stake in TAP Air Portugal for €1.025bn, choosing the German airline group over rival bidder Air France-KLM in the first phase of TAP's privatisation.
Why Lufthansa Group is buying TAP Air Portugal (44.9% stake)
Lufthansa, a long-standing Star Alliance partner of TAP, said it aims to support TAP's growth while preserving its national identity and strengthening Portugal's links to North and Latin America. Its proposal includes commitments to expand TAP's fleet by 117 aircraft by 2035 and by a further 130 after 2035, alongside investment in a pilot training school, an innovation centre and airports including Porto and Faro.
Deal terms and financing
Lufthansa said the offer is €1.025bn for 44.9% and could rise to as much as €1.2bn for 49.9%, with the increase covering up to 5% of shares initially offered to employees and a ticking fee. The government said the first phase brings in €1.201bn and values TAP at €2.552bn. Prime Minister Luís Montenegro said the winning offer was 16% higher than Air France-KLM's. The Portuguese state retains a 50.1% majority.
Regulatory approvals and timing
Lufthansa is working with the government and Parpública to finalise the transaction documents and expects to sign the agreements shortly. Completion is subject to approval by the relevant authorities, including the European Commission.
Market context
TAP carried a record 8.2 million passengers in the first half of 2026 but posted a first-half loss of €99.2m. Air France-KLM and Lufthansa submitted improved final bids in late September after a process that had been repeatedly delayed.
