Lufthansa Group Signs €1.025 Billion Agreement to Acquire 44.9% Stake in TAP Air Portugal

Lufthansa Group has signed an agreement with the Portuguese government to acquire an initial 44.9% stake in TAP Air Portugal for €1.025 billion, advancing the airline’s privatization process.

The agreement was signed at Lisbon’s Humberto Delgado Airport, with completion subject to regulatory approvals, including clearance from the European Commission. Lufthansa Group intends to finance the acquisition entirely through existing liquidity.

The German airline group could increase its ownership to 49.9% through the acquisition of shares initially offered to TAP employees. Including a transaction-related ticking fee, the total purchase price could reach €1.2 billion.

Lufthansa Group estimates that the minority investment could generate the majority of anticipated annual synergies of up to €450 million. The company also expressed support for the eventual full privatization of TAP, indicating that majority ownership could provide additional integration and growth opportunities.

The acquisition would strengthen Lufthansa Group’s position in the Europe–Latin America market, where its current market share is approximately 9%. Including TAP, the combined market share would reach an estimated 20%, reflecting TAP’s established network in Brazil and other Portuguese-speaking markets.

Under the proposed integration, Lisbon would become Lufthansa Group’s seventh hub, with plans to expand TAP’s connections to Brazil, Portuguese-speaking Africa and North America. The group intends to preserve TAP’s Portuguese identity while developing additional opportunities across Portugal, including Porto, Madeira, the Azores and the Algarve.

Lufthansa Group currently operates 353 weekly flights to six destinations in Portugal, representing a 75% increase compared with 2019. The company is also expanding its maintenance presence through a new Lufthansa Technik facility in Santa Maria da Feira, near Porto, which is expected to contribute to increasing its Portuguese workforce to more than 1,000 employees by 2030.

The transaction remains subject to regulatory clearance, and no completion date has been announced.