Full Breakdown
Lufthansa Wins Bid for Major Stake in Portugal’s TAP Air Portugal
By Drooid · · How we work
Core Event – Lufthansa Selected as Strategic Investor for TAP
On October 14, 2026, Portuguese Prime Minister Luís Montenegro announced that the government had chosen Deutsche Lufthansa AG to acquire a 44.9 % stake in TAP Air Portugal, with the option to increase it to 49.9 % if the employee-reserved portion is not taken up. The deal is valued at €1.2 billion for the initial share, giving the airline an implied total valuation of roughly €2.55 billion. The state will retain a 50.1 % majority, and the transaction remains subject to EU competition clearance.
Background & Context
TAP was renationalised in 2020 after severe COVID-19 losses, receiving €3.2 billion of public aid. Earlier attempts to sell stakes in 1998 and 2015 failed. In 2025 the government relaunched a privatisation process, inviting bids from major European airline groups. Lufthansa and Air France-KLM emerged as the final contenders, with IAG and Iberia withdrawing earlier.
Data & Statistics
- Stake offered: 44.9 % (up to 49.9 % if employees forgo their 5 % allocation).
- Financial offer: €1.201 billion for the initial 44.9 % (? $1.3 billion).
- Competing bid: Air France-KLM’s proposal was €1.038 billion, 16 % lower.
- Passenger traffic: TAP carried 8.2 million passengers in H1 2026 (up 4.2 %) and 16.7 million in 2025.
- Financial performance: First-half 2026 loss of €99 million, versus a net profit of €4.1 million in 2025.
Official Statements & Responses
Prime Minister Luís Montenegro said Lufthansa’s offer was “16 percent higher” and “a lower degree of uncertainty,” framing the selection as the best choice for the airline’s future. Infrastructure Minister Miguel Pinto Luz highlighted Lufthansa’s commitment to expand TAP’s fleet to 117 aircraft by 2035 and to support airport upgrades in Lisbon, Porto, Faro, the Azores and Madeira. Finance Minister Joaquim Miranda Sarmento noted that the privatisation process is expected to conclude by early 2028, after EU regulator approval, and that the proceeds will bolster Portugal’s public finances.
Verbatim Quotes
- “After studying the proposals, the government has chosen Lufthansa, whose financial offer was 16 percent higher than the competing bid,” — Luis Montenegro, prime minister
- “Lufthansa is still struggling financially. Lufthansa Deutsche Airlines, as the largest part of the group, is still losing money. It has to get its own house in order,” — John Strickland, aviation analyst
What’s Next
The transaction must obtain clearance from the European Commission’s competition authority, a process projected to take 18–24 months. Assuming approval, the sale is slated for completion by early 2028. Lufthansa will assume executive and operational management of TAP, retain Lisbon as a hub, and pursue fleet expansion, including the transfer of up to eight Airbus A350-900s after 2030. Additional commitments cover a new pilot-training school in Tancos, an innovation centre in Aveiro, and a corporate services centre in Santa Maria da Feira.
Conflicting Reports & Gaps
Sources differ on TAP’s current fleet size (101 aircraft, 100 Airbus planes, or 106 aircraft) and on the airline’s total valuation (figures range from €2.4 billion to €2.552 billion). The timeline for the second-phase acquisition of the remaining 50.1 % stake is unclear, with some reports mentioning a potential €863 million cash component and a €488 million share-swap, while others treat the proposal as speculative. Further details on integration and employment impact remain to be disclosed.