The Lufthansa Group has signed an important agreement with the Portuguese government at Lisbon’s Humberto Delgado Airport to acquire an initial 44.9 percent minority stake in TAP Air Portugal for 1.025 billion euros. Funded entirely from available liquidity, the deal marks a major step forward in TAP’s privatization process.
The agreement allows the German airline group to potentially increase its holding to 49.9 percent if it acquires shares initially reserved for TAP employees. Accounting for a transaction-related ticking fee, the total purchase price could reach 1.2 billion euros. While the initial minority stake is projected to unlock up to 450 million euros in annual synergies, Lufthansa Group has expressed strong support for TAP’s eventual full privatization to accelerate integration and future growth.
A primary strategic driver behind the deal is expanding Lufthansa’s presence in transatlantic travel. Combining networks will boost Lufthansa Group’s market share on Europe–Latin America routes from approximately 9 percent to nearly 20 percent, placing it on par with key regional rivals. Lisbon will serve as Lufthansa Group’s seventh major hub, with plans to expand flight connections across Brazil, Portuguese-speaking Africa, and North America while preserving TAP’s Portuguese identity. Growth initiatives will also target secondary regional destinations, including Porto, the Azores, Madeira, and the Algarve.
Lufthansa Group CEO Carsten Spohr highlighted the deal as a natural partnership that opens significant expansion opportunities. Lufthansa has operated in Portugal for over 70 years, currently offering 353 weekly flights to six domestic destinations. The airline group also supports over 500 local employees, a figure expected to surpass 1,000 by 2030 following the development of a new Lufthansa Technik facility in Santa Maria da Feira.
Completion of the acquisition remains subject to customary regulatory approvals, including antitrust clearance from the European Commission.