AIRLINE NEWS | OCTOBER 18, 2026

Lufthansa Selected to Acquire Major Stake in Portugal’s TAP Air Portugal

By Flight Travel News | October 18, 2026

Portugal has selected Germany’s Lufthansa Group to acquire a major stake in TAP Air Portugal, in a proposed deal worth up to €1.2 billion that could reshape competition in European aviation.

The Portuguese government announced its decision on October 14, choosing Lufthansa over rival bidder Air France-KLM in the first phase of the national airline’s privatisation.

The proposed transaction covers a 44.9% stake in TAP, with the possibility of increasing the shareholding by up to another 5% if employees do not purchase the shares reserved for them.

Why Lufthansa Was Selected

The Portuguese government said its decision considered the financial offers, contractual conditions and long-term business plans submitted by the competing airlines.

According to the government, Lufthansa presented the stronger financial proposal, valued at approximately €1.2 billion when the potential additional employee shares are included.

The proposed transaction would initially leave the Portuguese state with a 50.1% stake, allowing it to retain majority ownership of TAP during this phase of the privatisation process.

TAP’s Strategic Importance

TAP Air Portugal operates an extensive international network, with particularly important connections between Europe, Brazil, other Portuguese-speaking countries in Africa and North America.

Its Lisbon hub gives the airline a strategic position in connecting passengers travelling between Europe and South America. The network is one of the main attractions for a larger airline group seeking to expand its international reach.

Lufthansa already has interests in several European airlines, including SWISS, Austrian Airlines and ITA Airways. A partnership with TAP would further expand its presence in southern Europe and strengthen its access to routes across the Atlantic.

Plans for Growth and Investment

Portugal says the proposed partnership includes plans to expand TAP’s fleet to 117 aircraft by 2035 and to 130 aircraft after 2035.

The government's stated objectives also include strengthening operations at Lisbon and Porto airports, supporting connections to the Portuguese islands, and encouraging additional investment in aviation maintenance and engineering.

These plans could support the airline’s long-term development, although the final outcome will depend on the implementation of the investment commitments and the necessary approvals.

What Could This Mean for Travelers?

For passengers, closer cooperation with Lufthansa could eventually create opportunities for improved connections, more coordinated schedules and access to a wider network of destinations.

Travelers using Lisbon to connect between Europe and Brazil may be particularly interested in how the partnership develops.

However, the selection of Lufthansa does not immediately mean that flight schedules, ticket prices or frequent-flyer benefits will change. Passengers should continue to check current services and booking conditions directly with the airlines.

Regulatory Approval Still Required

The proposed transaction is not yet a fully completed acquisition. It must proceed through the remaining privatisation steps and receive the required regulatory approvals, including European Union scrutiny where applicable.

Any future move toward a larger ownership stake would depend on a separate process and the conditions established by the Portuguese government.

Sources

Reuters — Lufthansa Wins Race for Stake in TAP Air Portugal

Portuguese Government — Official Announcement

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