Key facts
- Lufthansa Group will acquire a 44.9% stake in TAP Air Portugal for €1.201 billion.
- The Portuguese government selected Lufthansa over Air France-KLM.
- The deal values TAP Air Portugal at €2.552 billion.
- The Portuguese state will retain a 50.1% majority stake.
- Lufthansa will manage TAP's executive and operational functions.
- The transaction is the first phase of TAP's privatization and requires regulatory approval.
Lufthansa Group has been chosen by the Portuguese government to acquire a 44.9% stake in TAP Air Portugal for €1.201 billion, marking the first phase of the airline's privatization. The German carrier's bid was selected over that of rival Air France-KLM due to a higher financial offer and lower uncertainty.
Portuguese Prime Minister Luís Montenegro announced the decision, stating that Lufthansa's offer was 16% higher than the competitor's. The transaction values TAP Air Portugal at €2.552 billion, a figure significantly above recent independent valuations. The Portuguese state will retain a 50.1% majority stake, with Lufthansa responsible for the airline's executive and operational management.
This privatization phase is expected to spur further investments in Portugal's aviation sector, including €500 million for a new pilot training school, an innovation center, and a corporate services center, alongside Lufthansa Technik's investment. Plans also include expanding TAP's fleet to 117 aircraft by 2035, with potential for 130 aircraft after that date, and the transfer of up to eight Airbus A350-900s from 2030. Investments are also earmarked for key airports.
TAP Air Portugal reported a loss of €99.2 million in the first half of 2026, a 40% increase from the previous year. The full privatization process is anticipated to conclude in 18 to 24 months, by 2028, pending approval from the European Commission.