Lufthansa appears to be strongly interested in acquiring a 19.9% stake in TAP Air Portugal, which is soon to be privatized by the Portuguese government.
Lufthansa Group CEO Cartsten Spohr was reported to be in talks with senior Portuguese officials in relation to the potential acquisition.
Portugal’s flag carrier was re-nationalized in July 2020, when the Portuguese government recovered majority control of the airline after buying out the shares held by US airline investor and entrepreneur, David Neeleman.
In 2015, Neeleman was the visible head of a consortium of investors called Atlântico Gateway, which acquired a 45% stake in an ailing TAP Air Portugal in a bid to turn the airline around. However, during the COVID pandemic the Portuguese government was forced to bail out the airline, leading to the subsequent exit of Neeleman from the airline, in a process that has not been exempt of controversy.
As soon as TAP Air Portugal returned to profitability (the airline posted a profit of €177 million on €4.2 billion of revenue in 2023), the Portuguese government announced its intention to sell the carrier to private investors.
TAP Air Portugal’ssignificant transatlantic operation out of Lisbon (LIS) and its strong presence in Brazil have since attracted the interest of Lufthansa, Air France-KLM and IAG.
The sale process could already be in motion already as early as Q1 2025 and could see the Portuguese state selling between 51% and 100% of the airline. The 19.9% stake now being discussed could fetch between €180 and €200 million.
If Lufthansa ends up acquiring a stake in TAP Air Portugal, it would be its second acquisition in southern Europe in as many years. In July 2024, the German airline group received the European Commission’s approval to acquire a 41% stake in Italian carrier ITA Airways. This deal will give it effective control of the Italian airline as well as the option to purchase the rest of ITA Airways’ shares in 2025.
