Lufthansa Group to Acquire Stake in TAP Air Portugal from Portugal

Portuguese Government Selects Lufthansa Group

After several months of deliberation, the Portuguese government on Wednesday, 14 October 2026, officially selected Lufthansa Group to acquire a minority stake in state-owned TAP Air Portugal. The German airline conglomerate secured the bid with an offer of €1.025 billion for a 44.9% share in the Lisbon-based flag carrier.

This decision followed a competitive process where Lufthansa Group prevailed over Air France-KLM, which had confirmed its own bid for a 49.9% stake in July. Officials indicated that the final acquisition amount could increase to €1.2 billion for a 49.9% stake as discussions continue to finalise the transaction.

Lufthansa Group's Strategic Expansion

Lufthansa Group Chairman and CEO Carsten Spohr stated that the acquisition paves the way for TAP Air Portugal to continue its growth alongside the German group. He added that the move allows Lufthansa Group to consistently pursue its internationalisation strategy and strengthen its position within the South Atlantic market.

As part of its proposal, Lufthansa Group highlighted its existing investments in Portugal, which include a new Lufthansa Technik facility in Santa Maria da Feira.

The group also emphasised its track record of developing European subsidiaries while helping them maintain their national character, and committed to enhancing Lisbon's standing as a 'strategically important Atlantic hub' within its extensive network.

TAP Air Portugal's Ownership Structure

The acquisition marks a significant step in the reprivatisation of TAP Air Portugal, which has operated as a state-owned enterprise for several years. Under the Portuguese government's current plan, Lufthansa Group will hold at least 44.9% of the airline.

The plan also allocates a 5% ownership stake to TAP Air Portugal's employees, with the Portuguese state retaining the remaining share of the carrier. Lufthansa Group has confirmed it is now actively collaborating with the Portuguese government to finalise all aspects of the transaction and complete the transfer of ownership.

Consequences for Global and Asian Markets

This acquisition by Lufthansa Group expands its footprint into the strategically important South Atlantic market, potentially intensifying competition on routes connecting Europe with destinations across Africa and South America.

For Asian travellers, this development may not immediately alter existing long-haul flight options to Portugal from major Asian hubs such as Singapore or Hong Kong.

However, it strengthens a prominent European airline group, which could lead to enhanced network integration and more competitive pricing on connecting flights through European gateways for those travelling between Asia and the South Atlantic region.

No direct, immediate impact on Asian carriers is anticipated, as TAP Air Portugal's network primarily focuses on the Atlantic corridor rather than direct Asian routes.