Lufthansa Group Hangar One. Photo: Lufthansa Group Lufthansa Group has signed an agreement with the Portuguese government to acquire an initial 44.9% stake in TAP Air Portugal for €1.025 billion, marking a major step forward in the airline's privatization and potentially bringing Lisbon into Lufthansa's network as its seventh hub.
The agreement was signed at Humberto Delgado Airport in Lisbon. Completion of the transaction remains subject to regulatory approval, particularly from the European Commission.
The deal gives Lufthansa the option to increase its stake to up to 49.9% by acquiring shares initially offered to TAP employees. Including a so-called ticking fee, the total purchase price could reach €1.2 billion.
The investment will be financed entirely through Lufthansa Group's available liquidity.
Lufthansa Group CEO Carsten Spohr described the agreement as an important step in the group's long-term development, highlighting the complementary nature of the two airlines' networks.
"Our networks complement each other ideally and open up new growth opportunities for us in Portugal and in particular in South America and Brazil," Spohr said.
He added that Lufthansa intends to work with TAP employees to expand the airline while preserving its Portuguese identity. The plans also include developing Lisbon into a major Lufthansa Group hub.
The acquisition is part of Lufthansa's broader Europeanization strategy, which aims to expand its presence across the continent through investments in established airlines.
Lufthansa estimates that the partnership could generate synergies worth up to €450 million. According to the group, even a minority stake would allow it to realize most of this potential, while a future majority holding could create further opportunities to accelerate TAP's growth and strengthen its competitiveness.
A central element of the expansion strategy is TAP's extensive network between Portugal and Brazil, Portuguese-speaking African countries, and North America.
The investment is particularly significant for Lufthansa's position in the Europe-Latin America market. The group currently holds approximately 9% of this market. Combined with TAP, its calculated share would rise to around 20%, bringing it closer to its main competitors.
Lisbon is expected to become Lufthansa Group's seventh hub, alongside its existing hubs in Frankfurt, Munich, Zurich, Vienna, Brussels and Rome.
The strategy also includes expanding operations in Porto, the Azores, Madeira and the Algarve.
Lufthansa Group has operated in Portugal for more than 70 years and currently offers 353 weekly flights to six destinations in the country. This represents a 75% increase compared with 2019.
More than 500 skilled professionals already work for Lufthansa Group companies in Portugal. That figure is expected to exceed 1,000 direct jobs by 2030, partly through the development of a new Lufthansa Technik facility in Santa Maria da Feira, near Porto. Construction officially began in June.
Lufthansa has also expressed support for the eventual full privatization of TAP, arguing that a majority stake could provide additional opportunities to expand the airline and unlock further benefits for both companies.
The transaction will be completed once all required regulatory approvals have been obtained.