Lufthansa to acquire stake in TAP Air Portugal

Lufthansa Group has been chosen by Portugal to acquire a stake in TAP Air Portugal. The deal is still pending regulatory approval, but its potential effects are already visible in aviation data.

Lufthansa's expanded capacity in Europe

According to the aviation data provider OAG, the expanded Lufthansa Group would represent 9.5% of the capacity departing from Europe by 2026, up from 8.4% currently. This increase is based on 2026 flight schedules, not actual passenger numbers or revenue.

Lufthansa remains the dominant airline in the group

Within the Lufthansa Group, which includes Lufthansa, Austrian Airlines, Brussels Airlines, ITA Airways, SWISS, and Eurowings, Lufthansa would remain the largest airline. It would represent 40.6% of the group's capacity, nearly three times that of SWISS, the second-largest airline in the group.

Significant impact on Europe-Brazil routes

The acquisition would significantly boost Lufthansa Group's presence on routes between Europe and Brazil. TAP Air Portugal currently holds 24% of these routes, and adding it to Lufthansa's existing presence would bring the group's share to 36%.

Strategic interest beyond Portugal

The merger would give Lufthansa a stronger position on the western coast of Europe and an expanded network to Brazil. This strategic move goes beyond the Portuguese market, as TAP would help strengthen Lufthansa's links between Europe and Latin America.

Lufthansa's growing influence in Lisbon

TAP currently operates 49% of the regular flights in Lisbon. After the acquisition, Lufthansa Group's share would increase to 52.5%, according to OAG. This growth occurs despite limited airport capacity and a lack of immediate plans for a new airport.

Lufthansa and TAP share a common alliance

TAP Air Portugal and the main Lufthansa Group airlines are already members of Star Alliance. In Lisbon, Star Alliance controls 52.7% of the capacity, far ahead of other alliances. TAP alone accounts for 87% of the Star Alliance's offer in the city.

Focus on cost savings over expansion

According to OAG, the most likely benefits of the merger would be cost and operational savings, rather than a major expansion of the network. The analysis highlights similarities in the fleets of TAP, ITA Airways, Lufthansa, and SWISS, which could lead to shared expertise and resource pooling.

Potential gains may take time

OAG notes that the expected benefits from a merger can take a long time to materialize and may not always reach the initially envisioned level. The success of the merger will depend on regulatory approvals and the integration of TAP into the Lufthansa Group.