What happened
Portugal chose Lufthansa Group over Air France-KLM in TAP Air Portugal's privatization, accepting an all-cash €1.2 billion bid for a 44.9% stake. Closing is not expected until early 2028 after a regulatory process of more than a year. The bid was reported as 16% higher than Air France-KLM's cash-and-share offer.
The Portuguese state keeps a 50.1% majority. Staff may acquire as much as 5%, which could lift Lufthansa from 44.9% to 49.9%. TAP is expected to remain in Star Alliance instead of joining SkyTeam. Terms can still shift before regulators finish, and operations should stay as they are until early 2028.
The purchase would give Lufthansa Group a stronger hold in South America, where it has been weak. TAP is outside the transatlantic joint venture. Antitrust immunity with coordinated schedules later on could erase the cheap Atlantic fares TAP still sells. One source expects deeper Miles & More integration in the second half of 2028 if the stake completes. Star Alliance earning and redemption should continue until then.
Watch the 2028 regulatory path and any Miles & More or joint-venture move that follows.
- Announced
- Oct 14, 2026
- Numbers
- 44.9%: stake Lufthansa is buying in TAP
- €1.2B: price of Lufthansa’s TAP stake
- 16%: how much higher Lufthansa’s bid was than Air France-KLM’s
- 50.1%: stake Portugal will keep
- 5%: maximum employee shareholding
- 49.9%: maximum Lufthansa stake if employees do not buy shares
- Takeaway
- There is nothing to book now; watch regulatory clearance into 2028 and any Miles & More or joint-venture changes.