Lufthansa is reportedly considering acquiring a 19.9% stake in TAP Air Portugal, as the Portuguese government prepares to privatize the national carrier. This potential move signals Lufthansa’s growing interest in expanding its footprint in Southern Europe.
Lufthansa Group CEO Carsten Spohr has reportedly been engaged in discussions with high-ranking Portuguese officials regarding this possible investment. TAP Air Portugal, which was re-nationalized by the Portuguese government in July 2020, is poised for privatization after returning to profitability.
The Portuguese government reclaimed majority control of TAP in 2020 by purchasing shares from U.S. airline investor David Neeleman, who had acquired a 45% stake in 2015 through the Atlântico Gateway consortium. Neeleman’s efforts to revive the struggling airline were interrupted by the COVID-19 pandemic, leading to a government bailout and his eventual exit from the company — a process not without controversy.
TAP Air Portugal has since rebounded, posting a profit of €177 million on revenues of €4.2 billion in 2023. The airline’s strong transatlantic operations from Lisbon and its dominant presence in Brazil have attracted interest from major European airlines, including Lufthansa, Air France-KLM, and IAG.
The Portuguese government is expected to initiate the sale process as early as Q1 2025, with plans to divest between 51% and 100% of the airline. The 19.9% stake Lufthansa is eyeing could be valued between €180 and €200 million.
Should Lufthansa secure a stake in TAP Air Portugal, it would mark the German airline group’s second strategic acquisition in Southern Europe in recent years. In July 2024, Lufthansa gained European Commission approval to acquire a 41% stake in Italy’s ITA Airways, positioning itself for eventual full control of the Italian carrier by 2025.
This potential investment in TAP Air Portugal aligns with Lufthansa’s broader strategy to strengthen its presence in key European markets, particularly in regions with significant transatlantic traffic.