Lufthansa to receive 44.9% stake in TAP Air Portugal — AeroTime

The Portuguese government has selected Lufthansa Group to acquire a minority stake in TAP Air Portugal. The German airline group will receive 44.9% of the company’s capital and will also be able to purchase up to 5% of shares reserved for employees if they do not exercise their right to buy them. The state will retain a controlling stake, AeroTime reports.

Value of the deal and competition

The Portuguese government estimated the total value of the transaction, including the 5% of shares for employees, at €1.201 billion. Lufthansa Group outpaced competitor Air France-KLM: according to the government, Lufthansa’s financial offer to acquire up to 49.9% of TAP’s share capital was up to 16% higher.

Lufthansa and Air France-KLM submitted their final bids to the state-owned company Parpública, which is managing TAP’s reprivatization process, on September 30, 2026. As AeroTime notes, citing Reuters, Lufthansa’s proposal had the advantage of being paid fully in cash, while Air France-KLM offered a combination of cash and shares.

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Plans for TAP’s development

Portuguese authorities believe that integration into Lufthansa Group will help TAP expand its global presence, particularly in Latin America, strengthen its position at Porto Airport, and increase its fleet to 130 aircraft. The government also expects to preserve TAP’s brand and headquarters, air connections with the islands, and strengthen the Lisbon hub.

Preparations for the second stage—the sale of a controlling stake—are planned to begin soon. The transaction is expected to be completed in early 2028. Lufthansa Group already includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways.