Lufthansa Won the Fight for TAP With a Bid 16 Percent Higher

Portugal’s government announced on October 14 that Lufthansa Group has been chosen to buy a 44.9 percent stake in TAP Air Portugal, beating Air France-KLM in the final round of the privatisation. Both carriers submitted final bids at the end of September.

The first phase of the deal is worth about €1.2 billion and implies a total valuation of €2.552 billion, according to Prime Minister Luís Montenegro. He said Lufthansa’s financial offer was 16 percent higher than its rival’s. The state keeps a 50.1 percent majority, and about 5 percent of shares are reserved for employees.

Lufthansa will handle executive and operational management, and the government has pledged fleet growth to 117 aircraft by 2035, plus investment that includes a €500 million pilot training school. Montenegro cited about 5,500 direct and indirect jobs across the investment initiatives. TAP reported a first-half 2026 loss of €99.2 million, 40 percent worse than a year earlier.

Nothing is final yet. The deal still needs regulatory approval, including from the European Commission, and the finance minister said the privatisation should be concluded in 18 to 24 months, in 2028. For travelers, the change to watch is how Lisbon, a major gateway between Europe, Africa and the Americas, fits into Lufthansa’s network.

Sources: Euronews, FlyingInIreland