Lufthansa beats Air France-KLM to acquire minority stake in TAP Air Portugal

Lufthansa Group has beaten rival bidder Air France-KLM to acquire a minority stake in TAP Air Portugal, concluding a process that began over a year ago.

On October 14, 2026, the Portuguese government and Prime Minister Luís Montenegro, announced that Lufthansa Group had successfully secured minority control of TAP Air Portugal.

Lufthansa Group will hold a 44.9% stake in TAP Air Portugal, plus up to 5% if employees do not exercise their right to purchase. The Portuguese government will remain the majority shareholder.

“The total value of the operation, including the 5% reserved for employees, amounts to €1.201 billion,” the government said.

Ian Dewar Photography / Shutterstock.com

“The final decision, between Air France/KLM and Lufthansa, fell on the financially stronger proposal presented by Lufthansa, which also presented an ambitious growth plan for TAP and the possibility of new investments in Portugal,” the government added. “The government considers that this operation safeguards national strategic interests, being convinced that Lufthansa has the scale, resources and ambition necessary for the sustainable growth of TAP.”

Both Lufthansa Group and Air France KLM submitted proposals for the acquisition of a majority stake, to be implemented in a possible second phase.

“In terms of finance, Lufthansa’s proposal to acquire up to 49.9% of TAP’s share capital is up to 16% higher than that presented by Air France/KLM,” the Portuguese government explained.

The Government said it believes the integration into Lufthansa will allow TAP to grow globally, strengthening its presence in Latin America, reinforcing its presence at Porto airport, and increasing the TAP fleet (up to 130 aircraft), in addition to safeguarding national strategic interests such as connections to the islands, maintaining the TAP brand and headquarters, and strengthening the hub in Lisbon.

Preparation of the process for the sale of the majority of the capital (2nd phase) will be launched shortly with the closing of the operation expected by the beginning of 2028.

Air France-KLM Group

“This is a strategic decision, which, as was our wish, was not confined to price. We are in a position to guarantee that we have safeguarded the interests of TAP and the Portuguese people,” the Minister of Infrastructure and Housing, Miguel Pinto Luz, said.

He added that the decision approved today “allows us to launch a new phase in the history of the airline, with greater capacity and competitiveness, enabling the State and Portuguese taxpayers to recover a much higher amount than initially expected”.

British Airways owner also considered bid

Lufthansa and Air France-KLM submitted their final bids to Parpública, the government entity running the airline’s re-privatization process, on September 30, 2026.

The two airline groups first entered the race to acquire a minority stake in TAP Air Portugal at the end of 2025. At one stage British Airways owner International Airlines Group (IAG) was also considering a bid.

According to Reuters, the Lufthansa Group bid was favored as the company was offering an all-cash deal, while Air France-KLM’s offer included a combination of cash and shares.

In July 2026, Air France-KLM said if its bid was successful, it would “position Lisbon as its unique Southern European hub”.

Air France-KLM also emphasized plans to develop new Maintenance, Repair and Overhaul (MRO) activities in Portugal, generate highly skilled jobs and increase Portuguese connectivity.

Lufthansa Group said in July 2026, that its offer “goes beyond a financial investment” with the carrier having “been active in Portugal for more than 70 years”.

The German firm stated that it was “presenting an offer that combines strategic, industrial, social, and financial aspects”.

Lufthansa Group already includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and most recently ITA Airways. Air France-KLM includes Air France and KLM Royal Dutch Airlines plus Transavia.

The Portuguese government’s decision to sell a minority share in TAP Air Portugal was first annnounced in July 2025.

RELATED Air France-KLM and Lufthansa Group submit final bids for TAP Air Portugal

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