Portugal picks Lufthansa to buy 44.9% of TAP, sources say

Portugal's government chose Lufthansa on Wednesday to buy a ‌44.9% stake in TAP Air Portugal, making the German airline the strategic partner of one of Europe's last independent flag carriers, two people familiar with the matter told Reuters. The deal, years in the making and repeatedly delayed, is the next step in the consolidation ‌of Europe's airline industry, a process seen as necessary to help smaller national carriers become more resilient as part of larger ‌groups.

Analysts and industry executives say consolidation is likely to accelerate as soaring jet fuel prices linked to the war in Iran force weaker airlines to work with larger, better-capitalised groups. No further details were immediately available. The government will announce the terms of the deal at a news briefing later in the day, ⁠following a ​cabinet meeting at which the decision ⁠was taken.

Lufthansa, which owns ITA Airways and SWISS among other carriers, beat rival Air France-KLM after both airlines submitted improved final bids for TAP in late September. ⁠Both airlines declined to comment. Speaking at the World Aviation Festival in Lisbon before the announcement, TAP Chief Executive Luis Rodrigues said joining a larger ​group would allow the Portuguese carrier to "access a larger pool of resources at better value".

The government has said ⁠its decision would be based not only on price but also on each bidder's industrial plan for TAP, including its strategy for the airline's growth and long-term sustainability. TAP's ⁠main ​attraction is its valuable landing slots connecting Lisbon with Brazil, Portuguese-speaking Africa and the US, routes that underpin Portugal's diaspora ties, tourism flows and investment links.

The government wants TAP's partner to expand operations and connectivity across Portugal's airport network, not only ⁠at Lisbon's hub but also in Porto, Faro, the Azores and Madeira. As of June, TAP operated a fleet of 101 aircraft ⁠serving 93 destinations worldwide: 52 in ⁠Europe, 16 in South and Central America, 14 in Africa and 11 in North America.

TAP carried a record 8.2 million passengers in the first half of 2026, up 4.2% from a ‌year earlier, while ‌operating revenue rose 4.3%.