Story perspectives

Portugal picks Lufthansa for up to 49.9% of TAP

By Drooid · Oct 14, 2026, 4:34 PM UTC · How we work

Summary

Lufthansa Acquires TAP

Portugal’s government selected Lufthansa Group to acquire up to 49.9% of TAP Air Portugal.
Lufthansa’s all-cash €1.2 billion offer beat Air France-KLM’s bid by 16%.
The deal adds a Lisbon hub and could lift Lufthansa’s EU-South America share to about 20%.
European Commission must approve the transaction within 18–24 months.
Lufthansa pledged to deliver 117 new aircraft by 2035 and 130 thereafter.

Summary

Lufthansa Boosts Jobs

TAP recorded a €99.2 million loss in H1 2026 due to higher fuel costs.
Lufthansa plans to create about 3,000 associated and 5,500 direct and indirect jobs in Portugal.
The investment will fund a new pilot training school in Tancos.
Lufthansa Technik will expand a maintenance facility in Santa Maria da Feira, adding 700 jobs.
The agreement earmarks upgrades for Lisbon, Porto, Faro and airports in the Azores and Madeira.

History

Historical Context

Early liberalization by the European Commission, completed with the final 1997 reforms granting unlimited intra-EU rights, sparked cross-border airline mergers and growth in EU traffic. The 2006 European Common Aviation Area deepened market integration, and the pending 2026 Lufthansa-TAP acquisition extends that consolidation trend across Portugal and the wider EU.

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Lufthansa Acquires TAP

Portugal’s government selected Lufthansa Group to acquire up to 49.9% of TAP Air Portugal.
Lufthansa’s all-cash €1.2 billion offer beat Air France-KLM’s bid by 16%.
The deal adds a Lisbon hub and could lift Lufthansa’s EU-South America share to about 20%.
European Commission must approve the transaction within 18–24 months.
Lufthansa pledged to deliver 117 new aircraft by 2035 and 130 thereafter.

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