Lufthansa Group to acquire stake in TAP Air Portugal

The Lufthansa Group has been selected by the Portuguese government as the preferred investor for TAP Air Portugal, concluding a lengthy bidding process. The decision was made on 14 October 2026, favouring Lufthansa's proposal over that of Air France-KLM.

Key details

• Decision date: 14 October 2026

• Initial stake: 44.9% of shares

• Initial cost: 1.025 billion Euros

• Maximum potential stake: 49.9% of shares

• Maximum potential cost: 1.2 billion Euros

• Fleet expansion target: 117 aircraft by 2035, up to 130 aircraft thereafter

• Aircraft transfer potential: Up to eight Airbus A350-900 aircraft to TAP after 2030

Lufthansa's initial offer includes acquiring 44.9 percent of TAP Air Portugal's shares for 1.025 billion Euros. An additional stake of up to five percent is reserved for TAP employees. If these employee shares are not fully subscribed, Lufthansa has the option to acquire the remaining portion.

With the acquisition of a potential total of 49.9 percent of shares and considering a time-dependent purchase price adjustment, the total transaction volume could increase to approximately 1.2 billion Euros. The Portuguese state is expected to retain at least 50.1 percent of the shares, maintaining its majority ownership. Despite this, the Lufthansa Group is slated to take over the airline's operational management.

Strategic Objectives and Future Plans

The Lufthansa Group intends to develop TAP Air Portugal over the long term, specifically aiming to strengthen its position on South Atlantic routes. The group highlighted interest in TAP's market share in South America, particularly on routes to Brazil, which TAP serves extensively from its hubs in Lisbon and Porto.

Plans include a significant expansion of TAP Air Portugal's fleet. According to the Portuguese government, the fleet is targeted to grow to 117 aircraft by 2035, and potentially to 130 aircraft thereafter. There is also a possibility for up to eight Airbus A350-900 aircraft to be transferred to TAP after 2030.

For frequent flyers, the acquisition could lead to closer integration between TAP Air Portugal and Lufthansa's Miles & More program, building on their existing Star Alliance partnership. However, no specific changes to TAP Miles&Go or its collaboration with Miles & More have been announced. TAP and Lufthansa are already both part of the Star Alliance.

Next Steps and Approvals

The selection by the Portuguese government is an initial step. The transaction will require approval from relevant authorities, including an antitrust review by the European Commission.

Source: Lufthansa

Opinion

This is a significant move for the Lufthansa Group, solidifying its reach into South America. For travellers, the potential integration with Miles & More could be a positive, offering more options for earning and redeeming miles. The proposed fleet expansion is a welcome sign of investment, but the ongoing majority state ownership with Lufthansa managing operations could introduce complexities in governance and future strategy.