Lufthansa Picked to Buy 44.9% of TAP Airline

BRAZIL · AVIATION

Portugal has picked Lufthansa to buy up to 49.9% of its airline TAP, which flies to 15 Brazilian cities. Nothing changes for passengers yet because the state keeps control and the deal is not closed.

Portugal’s government chose Lufthansa on Wednesday, 14 October, to buy 44.9% of TAP Air Portugal. TAP is Portugal’s state-owned national airline and flies to 15 Brazilian cities.

The Portuguese state keeps 50.1% and control, so TAP stays Portuguese for now. For travellers between Brazil, Europe and the United States, no route or fare change has been announced.

Lufthansa is a German airline group, and Air France-KLM is a French-Dutch one. Euro amounts in this article convert at the European Central Bank rate of 14 October, US$1.1195.

What the Deal Says

The Council of Ministers, Portugal’s cabinet, approved the choice, and Prime Minister Luís Montenegro announced it. Infrastructure Minister Miguel Pinto Luz presented the terms, and the decision appears in the official gazette of Friday, 16 October.

Lufthansa would buy 44.9%, and up to 5% more if TAP’s employees do not use their right to buy it. The state keeps 50.1%, so the government describes the sale as up to 49.9%.

The government says Lufthansa’s bid was up to 16% above its rival’s. The prime minister cited EUR 1.201 billion (about US$1.34 billion) for 49.9%, against EUR 1.038 billion (about US$1.16 billion) from Air France-KLM.

What Lufthansa Promises

TAP keeps its name, headquarters and Lisbon hub, the government says. It also stays in Star Alliance, the airline network that includes United Airlines and Air Canada.

The plan lifts the fleet to 117 aircraft by 2035 and 130 afterwards. It needs EUR 3 billion to EUR 4 billion (about US$3.4 billion to US$4.5 billion) of extra investment.

Up to eight Airbus A350-900 jets could be transferred to TAP after 2030. Porto would become a second base with eight long-haul aircraft.

Lufthansa Technik, the group’s maintenance arm, plans a centre at Santa Maria da Feira with about 700 jobs. The government also lists a pilot school at Tancos and a technology hub in Aveiro.

What Changes for Brazil

TAP estimates 2.1 million passengers between Brazil and Portugal in 2026. Its newest route, Lisbon to Curitiba, began in July, and São Luís followed on Monday, 26 October.

The airline calls São Luís its 15th Brazilian destination. Minister Pinto Luz called the deal a platform for Brazil and all Portuguese-speaking markets.

Lufthansa says it wants to strengthen TAP’s links to North America and Latin America. Neither the government nor Lufthansa has promised cheaper tickets or new Brazil routes.

What It Means for You

Americans flying to Brazil through Lisbon see no change now, and TAP stays in Star Alliance, which also includes United. The government says TAP will gain a partnership with United Airlines and Air Canada.

Investors in Lufthansa or in Portuguese state assets should note that the sale is staged and unsigned. Contracts for the first phase are due by the end of 2026, and a second phase is possible, not agreed.

Earlier Rio Times reports include TAP Air Portugal Expands Its Americas Network and Brazil’s Rio Airport Plans More US Flights. Background is in the Brazil economy guide.

Travel basics are in the Brazil e-visa guide for US citizens, and city pages cover São Paulo and Rio de Janeiro. The Brazil hub has more.

What Is Not Known

The signed contract is not public, and regulators have not ruled. The European Commission and Portugal’s civil aviation authority must still complete their procedures.

A second phase, possibly by 2028, could give Lufthansa a majority of TAP. The government puts it at EUR 863 million (about US$966 million) more in cash.

It would add a EUR 488 million (about US$546 million) share swap, but nothing is agreed. It is not known how many employees will use their right to buy up to 5%.

No new Brazil routes are tied to the deal, and no fare effect has been quantified. Both remain open until the contracts are signed.

What Comes Next

The government plans to finalise the contract and sign first-phase documents by the end of 2026. Regulatory approvals follow, and the government will then assess a timetable for the second phase.

None of this means Lufthansa owns any TAP shares today. Until the approvals and signing are done, TAP remains fully state-owned.

Frequently Asked Questions

Who is buying a stake in TAP?

Lufthansa, the German airline group, was chosen by Portugal’s cabinet on 14 October to buy 44.9% of TAP. The state keeps 50.1%, and employees may buy up to 5%.

How much is Lufthansa paying for TAP?

The state expects EUR 1.201 billion (about US$1.34 billion) if the full 49.9% is sold. The government says that is up to 16% above the rival bid, from Air France-KLM.

Will flights between Brazil and Europe change?

Not now: no route, schedule or fare change has been announced, and the sale is not closed. TAP serves 15 Brazilian cities and opened São Luís on 26 October.

Is TAP being fully privatised?

Not yet. The state keeps 50.1% in this phase, and a possible second phase, perhaps by 2028, could include a majority sale.

Sources: Portuguese government press release on the Council of Ministers decision, 15 October 2026; Council of Ministers Resolution 201/2026, official gazette listing of 16 October 2026; Lufthansa statement on the decision, as published by the Portuguese public broadcaster; Portuguese newspaper report on the impact on Brazil flights; European Central Bank reference exchange rates (all accessed 3 November 2026).