Portugal signs TAP share sale contract with Lufthansa

The Portuguese government on Tuesday signed a share sale contract with Germany's Lufthansa group for the partial privatisation of the state-owned airline TAP. The ceremony took place at the TAP Campus next to Lisbon airport. The contract formalises the terms of the deal confirmed in October and sets TAP on course to become part of the Lufthansa group.

The government announced its choice of Lufthansa on 14 October. The offer provides for 1.201 billion euros for up to 49.9% of the airline's capital, of which 5% would preferably go to employees. Until the transaction closes, the state keeps 51% of the capital and a majority on the board of directors.

Pledges to keep the airline Portuguese

Prime Minister Luís Montenegro said the contract makes it possible to anchor the country's strategic interests and preserve TAP's identity and brand. In his words, the airline's particular role, linked to Portugal's Autonomous Regions, its communities around the world and countries sharing the Portuguese language, has been safeguarded, as has social peace within the company and the commitment to its workers.

Finance Minister Joaquim Miranda Sarmento and Lufthansa chief executive Carsten Spohr also attended. Spohr said TAP will continue to be a Portuguese airline and called the deal an important milestone for TAP, Portugal and the Lufthansa group. The group intends to develop Lisbon as one of its hubs, but its outlook is not limited to the capital: Porto, Funchal, Madeira and the Algarve are also important to its strategy. He said the deal opens access to new markets in Portugal, Africa and Latin America, particularly Brazil.

Next steps

Completion of the sale and TAP's future integration into Lufthansa now depend on an assessment by Brussels, meaning the European authorities. The government expects European approval in the first half of 2028 and anticipates the transaction being completed by early 2028. Until then, the airline will continue to be managed independently, with oversight from the German group.