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The Portuguese government has selected Lufthansa to acquire a 44.9% stake in national flag carrier TAP Air Portugal, Portuguese Prime Minister Luis Montenegro announced on Wednesday, accepting a €1.2 billion ($1.4 billion) offer.
The German airline's offer is 16% higher than the competing bid from Air France-KLM, which was also seeking a stake in Portugal's main airline, Montenegroindicated.
The transaction still requires regulatory approval, with completion expected to take time.
Under the proposed ownership structure, TAP employees would receive preferential access to 5% of the shares, while the Portuguese state would retain 50.1%, maintaining its majority stake.
British Airways parent, IAG, and Spain's Iberia also considered acquiring a stake to expand their networks through TAP but later withdrew from the bidding process.
Portugal renationalized TAP in 2020 to contain heavy losses triggered by COVID-19 lockdowns.
The government committed to a sweeping restructuring of the airline in 2021 in exchange for European Union approval of €3.2 billion in public aid.
As of June 2026, TAP operated 101 aircraft and served 93 destinations worldwide, including 52 in Europe, 16 in South and Central America, 14 in Africa, and 11 in North America.
The airline 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%.
TAP's routes to Brazil, Portuguese-speaking African countries, and the United States would complement the Lufthansa Group's existing network, which includes Austrian Airlines, SWISS, Brussels Airlines and ITA Airways.
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