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The Portuguese government has selected the German group to acquire up to 49.9% of the airline. The deal marks a new chapter for TAP and could transform connections between Europe, Brazil and Africa.
TAP Air Portugal is about to enter a new phase in its history.
On Wednesday, 14 October 2026, the Portuguese government announced its decision to select German aviation group Lufthansa to acquire a stake of up to 49.9% in the country’s national airline.
The offer could reach €1.2 billion, exceeding the bid submitted by rival Air France-KLM by 16%. Under the deal, the Portuguese state is expected to initially retain a 50.1% stake in TAP.
Lufthansa’s proposal provides for the initial acquisition of 44.9% of the shares for approximately €1.025 billion. A further 5% has been reserved for employees and could be added to the German group’s stake if they do not purchase those shares.
The decision represents a significant step forward in the privatisation process, although the transaction still depends on the finalisation of agreements and approval from regulatory authorities.
The acquisition goes far beyond a financial investment.
TAP occupies a strategic position in international aviation, particularly through its connections between Portugal, Brazil, Africa and North America.
Lisbon Airport serves as an important hub linking these markets, making the Portuguese airline particularly attractive to groups seeking to expand their presence on transatlantic routes.
For Lufthansa, which already owns airlines including SWISS, Austrian Airlines and ITA Airways, acquiring a stake in TAP represents an opportunity to strengthen its position in the South Atlantic market and expand its international network.
The proposed plan also includes investment in the Portuguese airline’s expansion, with its fleet expected to grow from the current 101 aircraft to 117 by 2035 and 130 at a later stage.
The proposal also includes investment in infrastructure, professional training and aviation services in Portugal.
The Portuguese government’s decision reflects a broader transformation taking place across the European aviation industry.
Faced with high operating costs, international competition and a constant need for investment, major airline groups are seeking to increase their scale and strengthen their route networks.
In this context, TAP represents a strategic asset.
For Lufthansa, the deal could provide a stronger presence in markets where the Portuguese airline already has well-established connections.
For Portugal, the expectation is that the partnership will strengthen the airline’s competitiveness, expand international connectivity and attract new investment into the sector.
The impact could also extend to other areas of the economy, including tourism, hospitality, retail and services, particularly in cities connected to TAP’s international routes.
But challenges remain.
Integrating airlines requires investment, complex operational decisions and a balance between commercial and national interests.
TAP’s future will also depend on its ability to preserve its Portuguese identity while becoming part of one of Europe’s largest aviation groups.
More than a billion-euro transaction, Lufthansa’s selection demonstrates how airlines have become strategic assets in the competition for connectivity, tourism and international economic influence.
The Portuguese government has also acknowledged the possibility of a second phase of privatisation by 2028, which could increase Lufthansa’s stake in the airline.
For now, the decision marks the beginning of a new chapter, whose impact will be closely watched by the European market and by countries that rely on TAP’s international connections.
Can the involvement of a major international group strengthen TAP without compromising the identity that has made it one of Portugal’s leading airlines?
