Portugal has selected Lufthansa Group as the preferred strategic investor for the partial privatisation of TAP Air Portugal. Lufthansa will initially acquire 44.9% of the Lisbon-based carrier for €1.025 billion, with a further 5% reserved for employees. If employees do not take up those shares, Lufthansa could raise its holding to 49.9%, taking the potential value of the first phase to about €1.2 billion, while the Portuguese state retains 50.1%.
Lufthansa’s offer was chosen over that of Air France-KLM after Portugal assessed it as financially 16% stronger and less uncertain. The German group will assume responsibility for TAP’s executive and operational management while preserving the airline’s national identity, brand and Lisbon hub.
The proposed growth plan would increase TAP’s fleet to 117 aircraft by 2035 and to 130 aircraft after completion of Lisbon’s planned new airport. It also includes the possible transfer of up to eight Airbus A350-900s to TAP from 2030. Lufthansa plans to invest approximately €300 million in Santa Maria da Feira, supporting maintenance and engineering activities linked to about 700 jobs.
The parties must still finalise and sign the transaction documents, and completion requires approval from the relevant authorities, including European Union competition regulators. The process is expected to conclude in 2028. Portugal may pursue a second privatisation phase; Lufthansa’s proposal values a full takeover at approximately €2.552 billion, but the current decision covers only the initial minority stake.