Lufthansa set to win 44.9% stake in TAP Air Portugal bid

Lufthansa Group is set to win the bid for a 44.9% stake in Portuguese flag carrier TAP Air Portugal, beating Air France-KLM, according to a Reuters report relayed by One Mile at a Time. An official announcement is expected at an extraordinary Portuguese cabinet meeting on Wednesday, 14 October 2026, and sources suggest the outcome is settled.

How the bidding unfolded

One Mile at a Time reports that the Portuguese government relaunched its privatisation of TAP in the summer of 2025, aiming to sell a large stake in the airline. The process has been drawn out. Both Air France-KLM and Lufthansa Group had submitted binding offers, with a decision expected imminently.

Why Lufthansa reportedly won

According to the Reuters report as summarised by One Mile at a Time, Lufthansa Group is offering an all-cash deal, while Air France-KLM proposed a mix of cash and shares in its group. Lufthansa's stronger financial position was also reported to be a key factor.

Any such investment needs regulatory approval. One Mile at a Time's author notes that terms could still change before all authorities sign off, even if they are agreed.

Possible strategic implications

The commentary in One Mile at a Time is the author's opinion rather than confirmed fact. It argues that a stake in TAP would greatly strengthen Lufthansa Group's position in South America, where the group is otherwise not particularly strong. It also says both bidders would have gained the same geographic upside.

TAP is already a member of Star Alliance, which Lufthansa also belongs to. However, it is not part of the transatlantic joint venture. The author says it will be interesting to see whether an effort is made to bring TAP in. Currently, TAP undercuts competitors on price across the Atlantic, and the author notes that would stop under antitrust immunity, where fares and schedules are coordinated.

The author also suggests that part of the incentive for a group to buy a carrier is to keep it out of a competitor's hands, given how much long-haul European aviation is controlled by the three big European groups. For a wider comparison of the two rivals, see Lufthansa vs Air France.

What this means for travellers

Nothing changes immediately. The deal is not yet officially announced, and it still needs regulatory approval. The sources do not say whether TAP's loyalty programme, network or alliance membership will change.

• TAP remains in Star Alliance, so existing alliance benefits are not reported to be affected.
• If TAP later joined the transatlantic joint venture, One Mile at a Time says its currently lower transatlantic fares could end, as pricing would be coordinated.
• Closer ties could improve Lufthansa Group connections to South America, though no specific route or schedule changes have been reported.

Further details are expected in the coming days after the government announcement.

Sources: One Mile at a Time.