Lufthansa Group has been selected to acquire a stake in Portugal’s flag carrier, TAP Air Portugal, beating rival Air France-KLM in a major European aviation development. Portugal’s Prime Minister announced on Wednesday that the first stage of TAP’s privatisation process had been completed.
Under the proposed deal, Lufthansa is set to acquire a 44.9% stake in TAP, while 5% will be reserved for employees. The Portuguese state will retain the remaining shares, although Lufthansa may acquire any employee shares that are not purchased.
The acquisition would expand Lufthansa Group’s airline portfolio, which includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, ITA Airways and Eurowings. TAP’s Lisbon hub could also strengthen the group’s network and improve its connections across Europe, the Americas and other international markets.
However, the deal still requires further approvals, including clearance from the European Commission’s competition authorities. The privatisation process could continue until 2028 before the transaction is fully completed.
TAP reported a loss of €99.2 million in the first half of 2026, presenting a financial challenge as the airline moves towards a potential change in ownership. Lufthansa’s selection marks a significant step in its efforts to expand its presence in the European aviation market.