Lufthansa Wins Bid for 44.9% Stake in TAP Air Portugal

Lufthansa Group is set to win the bidding process for a 44.9% stake in Portuguese flag carrier TAP Air Portugal. The all-cash offer, expected to be confirmed on October 14, 2026, beats a rival bid from Air France-KLM due to Lufthansa's stronger financial position. Both groups had submitted binding offers for the investment, while IAG withdrew earlier. Portugal’s government will decide the winner at an extraordinary cabinet meeting on Wednesday, October 14, 2026.

Strategic rationale

Owning a stake in TAP would strengthen Lufthansa Group's position in South America. The airline lacks a strong presence in the region. TAP’s hub in Lisbon provides strong routes to Brazil and Portuguese-speaking Africa. This acquisition addresses that weakness. Long-haul European flying is dominated by Lufthansa Group, Air France-KLM, and IAG. The incentive for acquiring another carrier includes keeping it out of competitors' hands.

Alliance and joint venture implications

TAP is a Star Alliance member alongside Lufthansa. An effort may be made for TAP to join the transatlantic joint venture. TAP is not currently part of Lufthansa’s transatlantic joint venture with United and Air Canada. If TAP joined the joint venture with antitrust immunity, fares and schedules would be coordinated. This would represent a significant shift in Atlantic market dynamics.

Regulatory and process outlook

The investment requires regulatory approval. European regulators must approve the deal. Approval may take time with possible term changes. Terms could still change before all authorities sign off on the deal. The process is not yet final.

Context and bidding process

The government of Portugal relaunched a project to privatize TAP Air Portugal in the summer of 2025. The goal was to sell a large minority stake in the airline. IAG expressed interest in January 2025 but did not continue when bidding intensified. Both Lufthansa Group and Air France-KLM submitted final bids in September 2026.

TAP currently undercuts competition on price across the Atlantic. The situation is compared to Lufthansa’s earlier purchase of a majority stake in Italy’s ITA Airways. An official announcement is expected at the extraordinary cabinet meeting on Wednesday, October 14, 2026.