Lufthansa Group welcomed its selection as the buyer of a stake in TAP Air Portugal on October 15.
The Portuguese government selected Lufthansa Group as the buyer of a stake in TAP Air Portugal. Lufthansa Group will acquire a 44.9% stake for 1.025 billion euros. Depending on the acquisition of the employee stake, it may acquire up to 44.9% of the shares for up to 1.2 billion euros. The transaction is expected to be completed by the first half of 2028. Air France-KLM, which had also submitted a proposal to acquire the stake, was unsuccessful.
Chief Executive Officer (CEO) Carsten Spohr said, “As far as I can remember, this is the first time Lufthansa Group has acquired a profitable airline,” referring to TAP Air Portugal’s EBITDA margin of approximately 17% and EBIT margin of 6% in 2025. He further emphasized that Lufthansa Group currently holds a 9% share of the Europe–Central and South America market, ranking sixth, but that the combined share with TAP Air Portugal will reach 20%, putting it on par with its largest competitor. The group expects annual net synergies of up to 450 million euros, with around two-thirds to be realized within three years and the full amount within four years.
Chief Financial Officer (CFO) Till Streichert said the transaction will have an accretive effect on earnings per share from the first full year after completion. During the period in which Lufthansa Group remains a minority shareholder, dividend distributions will be gradually increased to as much as 75%.
Regarding labor relations, Portugal’s ground staff union SITAVA and regional pilot union SIPLA have indicated a positive stance toward dialogue, while the main pilot union has also sent a letter welcoming cooperation.
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