Lufthansa has agreed to buy a 44.9 percent stake in Portugal's TAP airline, defeating rival Air France-KLM in a competitive auction. Portuguese Prime Minister Luís Montenegro announced the deal, valued at €1.2 billion, after the government requested best and final offers. Lufthansa's offer was 16 percent higher than Air France-KLM's bid.
TAP was renationalised after pandemic grounding. The carrier is a major gateway to Brazil from Lisbon. Lufthansa's stronger balance sheet was a key factor.
The deal requires regulator approval and is not expected to complete until 2028. TAP reported €742.9 million in earnings on €4.3 billion revenue in 2025.
Source: Financial Times Companies · Summarized by HeadlinesBriefing