Lufthansa Wins Bid to Buy Stake in TAP Air Portugal

The Portuguese government has selected Germany's Lufthansa Group to purchase a minority stake in state-owned flag carrier TAP Air Portugal. Paddley Too reported a transaction value of 1.2 billion euros, which it noted is around 16 percent higher than a competing bid from Franco-Dutch group Air France-KLM. Outlets gave varying estimates for the exact share percentage, with Paddley Too reporting a 49.9 percent minority stake, while One Mile at a Time, Skift, and Simple Flying stated that the initial purchase is for a 44.9 percent stake. [1][2][3][4]

The financial terms of the deal were reported with slight variations across outlets. According to Skift, Lufthansa offered a purchase price of 1.025 billion euros for a 44.9 percent non-controlling stake, with Lufthansa indicating this could increase to up to 1.2 billion euros for a 49.9 percent holding. One Mile at a Time noted that the selection was based on an all-cash offer, while Skift quoted Portuguese Prime Minister Luis Montenegro regarding the winning bid. LoyaltyLobby reported that the deal is expected to close in early 2028. [2][3][5]

This privatization process follows a decision by the Portuguese government in the summer of 2025 to sell a large stake in the airline, which had been renationalized during the pandemic. Simple Flying reported that Air France-KLM and Lufthansa Group were the only two bidders that submitted final offers. Although the Portuguese government selected Lufthansa, the agreement still requires approval from the European Union. [2][4][5]

Lufthansa Group is a German aviation holding company whose primary carrier is the flag carrier of Germany. It is one of the founding members of Star Alliance, which was established in 1997. Skift reported that this acquisition provides Lufthansa with a strategic gateway to Lisbon and strengthens its flight network into Brazil. [3][13]

The Portuguese state will retain a controlling interest in TAP Air Portugal following the transaction. Simple Flying noted that the agreement does not entirely eliminate state involvement from the Portuguese aviation market. [3][4]