FRANKFURT, October 15, 2026: German airline group Lufthansa is in separate discussions about eventually acquiring the remaining majority stake in Portugal’s flag carrier, TAP Air Portugal, Chief Financial Officer Till Streichert said Thursday.
Under the potential arrangement, the Portuguese government could become a Lufthansa shareholder with a stake of up to 5%, Streichert said.
The comments followed Portugal’s decision to select Lufthansa over rival Air France-KLM to acquire a stake of up to 49.9% in TAP for €1.2 billion ($1.35 billion).
Portuguese Prime Minister Luís Montenegro said Lufthansa had submitted a higher offer than Air France-KLM, the only other bidder in the process. Some reports put the initial stake at 44.9%, with the government reserving another 5% for TAP’s more than 9,000 employees to purchase shares.
Deal Could Close in 2028
Streichert said Lufthansa expects the transaction to close in the first half of 2028, subject to regulatory approval. The airline group anticipates around €450 million in synergies from the deal.
European Union regulators must approve the acquisition before it can proceed.
Lufthansa Chief Executive Carsten Spohr described TAP as “a perfect fit” for the group, which already owns airlines including Austrian Airlines, ITA Airways and SWISS.
Spohr said the transaction could face fewer obstacles from EU regulators than Lufthansa’s acquisition of Italy’s ITA Airways, whose turnaround remains ongoing. He pointed to less overlap between TAP’s operations and Lufthansa’s existing businesses.
Montenegro said Portugal could complete TAP’s privatisation by 2028.
TAP’s Routes Strengthen Its Appeal
TAP carried 16.7 million passengers last year, according to the airline. Its fleet of more than 90 aircraft serves over 90 destinations across Europe, the Americas and Africa.
The airline lists 52 destinations in Europe, 16 in Central and South America, 14 in Africa and 11 in North America. Analysts particularly value its routes to Brazil, which provide an important link between Europe and South America.
TAP reported a net profit of €4.1 million ($4.6 million) last year, according to its published accounts.
Portugal’s Long-Running Privatisation Effort
The proposed sale marks another attempt to privatise TAP after earlier efforts in 1998 and 2015 failed, leaving the airline under state ownership.
The transaction also forms part of a wider consolidation of Europe’s airline industry, as major groups seek to expand their networks and strengthen their positions in key markets.
For Lufthansa, acquiring a stake in TAP would extend its reach into Portugal and strengthen its transatlantic network, particularly through the airline’s established connections to Brazil.
The final ownership structure and timetable will depend on the transaction’s terms and the outcome of the required regulatory review.
