Germany’s Lufthansa Group has emerged victorious in the competition with Air France-KLM to acquire a minority stake in Portugal’s national airline, TAP Air Portugal. The Portuguese government selected Lufthansa’s proposal on October 14, 2026, as part of its ongoing privatisation programme.
Lufthansa has been selected to acquire a 44.9% stake in TAP, with the possibility of increasing its holding to 49.9% if employees do not purchase all the shares reserved for them. The proposed transaction is valued at up to €1.2 billion, while the Portuguese government will retain a 50.1% majority stake.
According to the Portuguese government, Lufthansa’s financial offer was approximately 16% higher than the competing proposal from Air France-KLM. The decision also considered the airline’s investment plans, operational strategy and potential to support TAP’s long-term growth.
The deal is expected to strengthen Lufthansa’s presence in southern Europe and expand its access to TAP’s extensive network connecting Europe with Brazil, Portuguese-speaking African countries and North America. TAP’s Lisbon hub offers strategic value for international passenger traffic and connecting services across the Atlantic.
Lufthansa has outlined plans to expand TAP’s fleet, strengthen its operations across Portugal and invest in the airline’s long-term development. The proposal includes increasing the fleet to 117 aircraft by 2035, with further expansion planned beyond that period.
The transaction remains subject to regulatory approvals, including clearance from the European Commission. The broader privatisation process could continue into 2028, depending on the completion of the required procedures.
The selection marks a significant development in European aviation consolidation, giving Lufthansa an opportunity to strengthen its international network while supporting TAP’s expansion and competitiveness in global air travel.