Lufthansa joins the race to bid on TAP, while IAG bows out
April 3, 2026
German flag carrier Lufthansa has followed Air France-KLM in making a bid for a minority stake in TAP Air Portugal.
Lufthansa’s non-binding bid was lodged on Thursday, 2 April, ahead of the 17:00 deadline and just hours after Air France-KLM had submitted its own bid. The Portuguese government is selling up to 49.9% of its airline, with an additional 5% reserved for employees.
Under the terms of the privatisation agreement, the remaining 50.1% stake in TAP can be sold at a later stage to the investor acquiring the minority holding.
A third bidder, International Airlines Group (IAG), has bowed out of the process after failing to submit a bid by the Thursday deadline. In December, IAG’s Chief Financial Officer described Portugal’s willingness to sell only 49.9% of the company as an issue.
Lufthansa not deterred by unrest in the Middle East
The details of Lufthansa’s bid have not been disclosed, but during a meeting with Portuguese journalists on Monday, Tamur Goudarzi-Pour, Lufthansa’s Head of Strategy, confirmed the group’s intentions.
He stated that Lufthansa was not deterred by the war in the Middle East, which is affecting fuel costs and demand. “We are part of the process and intend to make a non-binding offer this week,” Goudarzi-Pour said, according to a report in Eco News.
He did, however, note that structural shifts taking place in the sector must be factored into its bid. While this does not mean “offering a discount because of Iran,” the group must consider the industry’s structural trajectory. He also noted that Lufthansa’s participation in the privatisation of the Portuguese carrier takes a “long-term perspective”.
Why is TAP Air Portugal so valuable to Lufthansa?
With a strong presence on routes connecting Europe with South America and Africa, including Portuguese-speaking countries such as Brazil and Angola, TAP is a strategically important asset.
As of the end of December, 2025, the airline carried a record number of passengers on routes connecting Europe and Brazil – 2,066,000 travellers. The airline’s network strength would be invaluable to Lufthansa in maintaining its competitive edge against other airline groups, including Air France-KLM.
If successful in its bid, TAP will join the Lufthansa Group’s extensive portfolio, which currently includes Lufthansa, Swiss Airlines, Brussels Airlines, Austrian Airlines, ITA Airways, Eurowings, and Discover Airlines.
What happens next?
With the bids now submitted, Parparublica, the Portuguese state holding company managing the process, has 30 days to prepare a report on the proposals received. The selected parties will then have 90 days to submit a binding offer, with a final deal expected to be formalised before the end of the year.
The Portuguese government, which is maintaining its majority stake – at least initially – has made clear that bidders must commit to strengthening TAP’s operations and routes at its Lisbon hub – Humberto Delgado Airport, as well as at Portugal’s nine other airports, including the holiday hotspots of Porto and Faro.
How would the winning bidder benefit from the Portuguese asset?
TAP operates an all-Airbus fleet of 96 aircraft, with 21 more on order. Its regional subsidiary, TAP Express, operates an additional 19 Embraer E190/195s.
A member of Star Alliance, TAP carried over 12 million passengers in the first nine months of 2025 and reported €3.28 billion in operating revenue and €55.2million in net income.
While the airline described last summer as one of its “busiest”, it also said it was one of the most challenging due to competitive pressures and operational constraints fuelled by border control at national airports and in European airspace.
Featured image: stock.adobe.com
