Portugal sells 49.9% of TAP to Lufthansa for 1.201 billion euros
Travel & Tourism News Europe - Portugal sells 49.9% of TAP to Lufthansa for 1.201 billion euros, according to an announcement dated October 14th, 2026. Portugal´s Prime Minister, Luís Montenegro, announced that the Government has selected the Lufthansa group to acquire up to 49.9% of TAP's share capital, concluding the first phase of the airline's privatization process. The choice of Lufthansa was based on a financial offer 16% higher than that of Air France-KLM and with a lower degree of uncertainty. The operation foresees a revenue of €1.201 billion, with the Portuguese State maintaining a majority stake of 50.1% in the company.
TAP´s Integration with Lufthansa foresees growth for the airline and for Portugal:
Portugal´s Prime Minister believes that the integration of TAP into a large international group will strengthen the company's competitiveness, increase its fleet, destinations and air connections, and expand investment in the national aeronautical sector. Among the planned investments are the creation of a pilot school in Tancos, an innovation center in Aveiro, and a corporate services center, along with Lufthansa Technik's investment in Santa Maria da Feira. The combined initiatives could generate 5,500 direct and indirect jobs, including 3,000 associated with TAP's projected growth.
"This is the best choice for the future of the company and the one that best protects the national interest," declared Portugal´s Prime Minister, highlighting the valuation of TAP to €2.552 billion, which he attributed to the restructuring and management work developed in the last two years and the Government's strategy for the aviation sector.
The operation also foresees the maintenance of the TAP brand and headquarters in Portugal, the Lisbon hub, and connections to the autonomous regions, the diaspora, and Portuguese-speaking markets. The strengthening of Francisco Sá Carneiro Airport in Porto is also highlighted as part of the strategy for the sector, along with the airports in Faro and the autonomous regions.
"Our ambition is to give TAP wings so that it flies higher and higher and flies further and further," he stated, advocating for a Portuguese airline integrated into a large international group, capable of ensuring its sustainability and serving the strategic interests of the country.
Portugal plans to sell more TAP shares to Lufthansa in the future:
A possible second phase of privatization, which could proceed until 2028, foresees, in Lufthansa's proposal, an additional revenue and a share swap that could make the Portuguese State the second largest shareholder of the joint entity, allowing it to benefit from future dividends.
"With this decision, the Government successfully concludes the first phase of the privatization of our airline," stated Portugal´s Prime Minister Luís Montenegro, emphasizing that the process was conducted with "competitive rigor, demanding negotiation, and total transparency towards the Portuguese people."
Portugal sells 49.9% of TAP to Lufthansa to recover taxpayer investment:
Portugal´s Prime Minister Luís Montenegro highlighted the objective of recovering more than €3.2 billion of public funds invested in TAP, arguing that the operation should reduce the company's dependence on taxpayers.
"From the outset, we have set our goal of recovering this value for the Portuguese people," stated Portugal´s Prime Minister, adding that the Government was "firm and demanding in the negotiation" to obtain the best conditions and concessions and to reduce the State's future exposure.
