Lufthansa to acquire up to 49.9% of TAP Air Portugal in €1.2bn deal

Lufthansa Group announced it will buy an initial 44.9% of TAP Air Portugal for €1.025 billion, with a further 5% of shares reserved for employees, allowing the carrier to raise its holding to 49.9% if the unsubscribed shares are taken up, while the Portuguese state retains 50.1% ownership.

The offer, valued at €1.201 billion, is about 16% higher than the competing bid from Air France‑KLM and values TAP at roughly €2.55 billion; Lufthansa plans a second‑phase purchase of the remaining 50.1% for €1.351 billion, comprising €863 million in cash and €488 million in Lufthansa Group shares. The transaction requires European Commission approval and is expected to close 18 to 24 months after the 14 October announcement, around 2028.

Lufthansa will apply its Distribution Cost Charge to GDS‑issued tickets from 1 January 2026, setting fees of €22.50 on Sabre and €23 on Travelport for tickets originating in Germany, while Amadeus raised its charge to €19 on 5 May 2026.