Lufthansa to pay $1.3 billion for 44.9% of Portugal's TAP

Portugal's government on Wednesday picked Lufthansa to buy a ‌44.9% stake in TAP Air Portugal for €1.2 billion ($1.3 billion), making the German airline the strategic partner of one of Europe's last unaligned flag carriers. 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. Lufthansa, which already owns Austrian Airlines, ITA Airways and SWISS, among other carriers, beat rival Air France-KLM after both airlines submitted ⁠improved final ​bids in late September.

Prime Minister ⁠Luis Montenegro told a news briefing the winning bid exceeded Air France-KLM's offer by 16%. 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 said its decision was 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%.