Lufthansa and Portuguese government sign deal over TAP airline stake

Lufthansa and the Portuguese government have finalized a contract regarding the German airline group's entry into TAP, the Portuguese state-owned carrier, according to Lufthansa. The announcement confirms a formal agreement between the two parties on Lufthansa's stake in TAP, as described by Lufthansa, though the supplied material does not specify the stake size, structure, or timing for the equity transfer.

Additional reporting confirms that the Portuguese government signed the share sale contract for TAP with Lufthansa, formalising the deal that had been indicated in October. The ceremony took place at the TAP Campus near Lisbon airport and was attended by Portugal’s prime minister and finance minister, as well as Lufthansa’s chief executive. The prime minister emphasised that the agreement aims to preserve TAP’s identity and brand and to anchor the country’s strategic interests, highlighting TAP’s uniqueness and social stability as part of the deal’s objectives.

According to Euronews, Lufthansa will acquire part of TAP’s capital with a proposed stake up to 49.9% and an option for 5% to be allocated to workers, while the Portuguese government will retain 51% of the capital and a majority on the TAP board of directors. Lufthansa described TAP as a Portuguese airline and signaled plans to develop Lisbon as a Lufthansa hub, while also stressing opportunities to expand into markets in Africa and Latin America, including Brazil.

Simple Flying reports that Lufthansa Group and the Portuguese government have signed an agreement for the German group to acquire a 44.9% stake in TAP Air Portugal for €1.025 billion, roughly $1.2 billion, with the signing taking place in Lisbon and marking a formal step in the transaction. The report notes that the deal follows Portugal’s selection of Lufthansa over Air France-KLM as the preferred partner earlier in the process and confirms the parties’ commitment ahead of regulatory approvals.

The material from Yahoo Finance also notes that completion of the sale depends on Brussels’ assessment, with expected European approval anticipated in the first half of 2028. Until then, TAP will operate as an independent entity under oversight from the Lufthansa group. No further specifics about governance arrangements or the timetable for regulatory clearance are provided in the Yahoo Finance report.

France 24 adds that Lufthansa has warned ticket prices are likely to rise further as fuel costs are expected to jump, projecting a two-billion-euro increase in annual fuel expenses tied to ongoing Middle East tensions. This context places the deal within broader aviation-cost dynamics and pricing strategies amid energy shocks, though it does not specify how these factors will affect the TAP transaction itself.

Across the reports, the core event is the formal agreement between Lufthansa and the Portuguese government over TAP, with Lufthansa pursuing a substantial minority stake and the government retaining a controlling majority, while aiming to preserve TAP’s identity and expand its international footprint. The sources differ on the precise stake figure (ranging from 44.9% to up to 49.9% with a 5% worker option) and mention a €1.025 billion price in Simple Flying, but none of the materials provide a single, definitive stake size. All outlets agree that regulatory approvals, including from Brussels, are required before any transfer can be completed, with an expected timeline extending into 2028.