The Portuguese government has chosen Lufthansa Group over Air France-KLM as the buyer of a stake in TAP Air Portugal. The decision was announced on October 14, 2026, as part of the privatization of the national airline.
Lufthansa will pay €1.201 billion for 44.9% of TAP. Another 5% is reserved for employees. According to Portuguese Prime Minister Luís Montenegro, Lufthansa’s offer was 16% higher than that of Air France-KLM. The deal values TAP at about €2.552 billion.
The Portuguese government will keep a 50.1% majority stake. Lufthansa is expected to take over TAP’s executive and operational management once the deal closes.
Lufthansa Plans to Expand TAP’s Fleet
For Lufthansa, TAP means a stronger position in Southern Europe and access to Brazil and other Latin American markets, as well as Portuguese-speaking countries in Africa. TAP’s Lisbon hub connects Europe with destinations across the Atlantic.
Under Lufthansa’s plan, TAP’s fleet would grow from around 100 aircraft to 117 by 2035 and to more than 130 after that. From 2030, up to eight Airbus A350-900 aircraft would be transferred to TAP. Lufthansa also promised to invest in pilot training, innovation and corporate services in Portugal, and to keep TAP’s Portuguese identity.
Deal Expected to Close by Early 2028
The deal still needs approval from regulators, including the European Commission. The Portuguese government expects to finish the process by early 2028.
TAP returned to state control during the COVID-19 pandemic after heavy financial losses. Portugal then started a new privatization process to find a strategic investor.
Air France-KLM had also bid for up to 49.9% of TAP and planned to make Lisbon its main hub in Southern Europe. With this decision, Lufthansa becomes TAP’s strategic partner.