Lufthansa beats Air France-KLM to buy 44.9% stake in TAP Air Portugal for €1.2 billion

Lufthansa has been selected by the Portuguese government to acquire a 44.9% stake in TAP Air Portugal for €1.2 billion, ending a two-horse race with Air France-KLM. Portuguese Prime Minister Luis Montenegro announced the deal on Wednesday after a Council of Ministers meeting, with the transaction expected to be finalised by early 2028, pending EU regulatory approval. A further 5% of the airline's capital is reserved for TAP's 9,000-plus employees to purchase.

TAP flew 16.7 million passengers last year across more than 90 destinations, with its Brazil routes described as particularly prized by analysts.

The deal marks the third privatisation attempt for TAP after efforts in 1998 and 2015 both collapsed, with the state taking the airline back each time.

TAP posted a loss of €99.2 million in the first half of 2026, a 40% deterioration on the previous year, raising questions over what Lufthansa is really buying.