Lufthansa has acquired a 44.9% stake in TAP Air Portugal, outbidding Air France-KLM. The Portuguese government chose Lufthansa’s offer, which was 16% higher than Air France-KLM’s bid.
The sale is expected to generate €1.2 billion for the Portuguese government, with the total valuation of TAP Air Portugal estimated at €2.55 billion. The state will retain 50.1% of the company’s capital.
The remaining 5% will be reserved for employees. The Portuguese Prime Minister stated that Lufthansa’s financial offer presented a lower degree of uncertainty.
TAP Air Portugal transported 16.7 million passengers in 2025. The company’s partial privatization has been closely watched by the industry.
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Ben Smith, CEO of Air France-KLM, congratulated his team on their work and expressed regret over the outcome. He noted that Air France-KLM’s offer was “strong and complete,” and that it respected TAP’s brand and heritage.
Despite the setback, Ben Smith stated that the decision would not change Air France-KLM’s strategy, including its plans to integrate SAS – Scandinavian Airlines, subject to regulatory approvals.
Ben Smith also wished the TAP Air Portugal teams well, saying they would be welcomed as “friendly competitors” on Air France-KLM’s flights. He concluded his message in Portuguese, thanking them and wishing them much success.