Lufthansa wins bid for minority stake in TAP Air Portugal

Lufthansa Group will acquire a minority stake in TAP Air Portugal, winning a process that ran for more than a year and beating rival bidder Air France-KLM.

The Portuguese government and Prime Minister Luís Montenegro announced the decision on October 14, 2026. Lufthansa takes 44.9% of TAP, a figure that could rise by up to 5% if employees do not exercise their right to buy shares. The government keeps the majority shareholding.

The transaction's total value, including the 5% set aside for employees, is €1.201 billion, according to the government.

Lisbon said it chose Lufthansa over Air France-KLM on the strength of its financial offer and its growth plans for the carrier and for Portugal. The government described Lufthansa's proposal to acquire up to 49.9% of TAP's share capital as up to 16% higher than Air France-KLM's, and said it believed the operation protected national strategic interests.

Both groups submitted proposals covering the acquisition of a majority stake, to be carried out in a possible second phase.

According to the government, integration into Lufthansa would let TAP grow internationally, strengthen its position in Latin America and at Porto airport, and expand its fleet to as many as 130 aircraft. It said the deal would also preserve connections to the islands, keep the TAP brand and headquarters in Portugal, and reinforce the Lisbon hub.