Portugal has selected Lufthansa Group to acquire up to 49.9% of TAP Air Portugal, concluding the first phase of the national airline’s privatisation. The initial transaction covers 44.9% for Lufthansa, with a further 5% reserved for employees, and is valued at €1.201 billion. Portugal will retain a 50.1% majority while Lufthansa assumes executive and operational responsibility, subject to final negotiations and regulatory approval.
Lufthansa’s offer prevailed over that of Air France-KLM, with a financial proposal reportedly 16% higher and considered less uncertain. Any shares not acquired by employees may be purchased by Lufthansa, taking its holding to as much as 49.9%.
A separate second phase could allow Lufthansa to acquire a majority stake. The proposal would provide Portugal with an additional €1.351 billion, including €863 million in cash and a share exchange, producing an approximate total direct valuation of €2.552 billion if completed. The government expects to prepare that process shortly, with completion targeted for early 2028.
The initial sale still requires documentation, employee participation and European Union competition clearance. During the transition, Lufthansa is expected to guide TAP’s fleet, network, passenger growth, investment and employment strategy while Portugal remains the controlling shareholder. The arrangement also keeps TAP within the Lufthansa-led Star Alliance network and strengthens the group’s position on routes linking Europe with Brazil, South America and Portuguese-speaking Africa.