Portugal Picks Lufthansa to Buy 44.9% of TAP Air Portugal

October 15, 2026 — Portugal’s government has chosen Lufthansa Group over Air France-KLM to buy a minority stake in TAP Air Portugal. The decision ends a months-long contest for Lisbon’s flag carrier.

The deal

Stake: Lufthansa gets at least 44.9% of TAP. Employees get 5%, and the Portuguese state keeps the rest, 50.1% for now.
Price: Reports differ slightly. Airline Geeks reports an offer of €1.025 billion for 44.9%, which officials said could rise to €1.2 billion for 49.9% as talks continue. One Mile at a Time reports that the first phase is expected to raise €1.201 billion, implying a total valuation of €2.552 billion.
Why Lufthansa won: Its offer was all cash, while Air France-KLM’s bid mixed cash and shares. Prime Minister Luís Montenegro said Lufthansa’s bid was 16% higher than the rival proposal.
Management: One Mile at a Time reports that Lufthansa will run TAP’s executive and operational management even though the state keeps a majority stake.
Timing: The deal still needs regulatory approval. ECO News, cited by NL Times, says the share transfer is expected in 2027. Exact closing date: TBA.

Lufthansa CEO Carsten Spohr said the decision lets TAP continue its “success story together with Lufthansa Group.” The group says it will build up Lisbon as a “strategically important Atlantic hub.” Lufthansa already runs 353 weekly flights to Portugal, employs more than 500 people there and has a new Lufthansa Technik site near Porto.

Why it matters

TAP’s Lisbon hub connects Europe with Brazil and Portuguese-speaking Africa. Aviation Week data puts TAP’s share of Europe–Brazil capacity at 25.6%. TAP is already a Star Alliance member, so the deal keeps it in Lufthansa’s alliance. TAP is not part of the transatlantic joint venture that Lufthansa runs with United and Air Canada. One Mile at a Time expects TAP may try to join it, but nothing has been announced. Sources do not mention any change to TAP’s Miles&Go program, and no union reaction has been reported.

What it means for non-revs

Nothing changes yet. The sale has not closed and needs regulatory approval. Your current TAP ZED, interline or Star Alliance staff travel arrangements stay as they are until a change is announced.
For Star Alliance and Lufthansa Group employees, this is the more favourable outcome. TAP stays inside the alliance rather than moving toward SkyTeam, which an Air France-KLM win could have meant over time.
Watch transatlantic loads. If TAP joins the Lufthansa–United–Air Canada joint venture, which has not been announced, One Mile at a Time expects TAP’s low transatlantic fares to go away. That could mean fewer bargain-fare passengers filling the flights. That outcome is speculative for now.
TAP employees: the plan gives staff a 5% stake. Details of how those shares will be distributed are TBA.