Lufthansa expands European dominance by winning TAP Air Portugal

The deal, announced on October 14, gave Lufthansa the preference over its rival Air France-KLM in the race for the Portuguese flag carrier. The transaction remains subject to regulatory approval from the European Commission, with an official completion not expected before 2028.

Lufthansa already controls Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines and ITA Airways, among other businesses. Adding TAP would reinforce its multi-brand structure and extend its reach into markets where Lisbon offers a natural gateway, particularly South America with Brazil as well as Portuguese-speaking Africa.

TAP adds indeed capacity, not just a new brand. OAG data cited in a recent TravelMole article shows the Portuguese airline is scheduled to offer approximately 8.49 million seats during winter 2026–27, up 5.3% year over year.

Using an earlier CAPA/OAG benchmark, Lufthansa Group’s European seat share stood at 11.1%, including Italian ITA. Adding TAP’s winter capacity suggests a potential share of around 12% of the European market. Lufthansa Group is then the largest of Europe’s three major legacy airline groups by overall fleet size, ahead of International Airlines Group (IAG) and Air France-KLM.

The Portuguese government said Lufthansa’s winning bid was 16% higher than Air France-KLM’s final offer. The German bid was reportedly favored in part because it was entirely cash-based, unlike Air France-KLM’s offer, which combined cash and shares.

The deal also gives Lufthansa a stronger position in the Europe–Brazil market. Lisbon is the continent’s largest gateway to Brazil this winter, with 1.54 million scheduled seats and a 31.4% share of capacity between Europe and Brazil.

TAP operated 101 aircraft and served 93 destinations as of June 2026. It carried a record 8.2 million passengers in the first half of the year, up 4.2% year over year.