BERLIN- Lufthansa Group is preparing a major expansion of its Portuguese investment, with TAP Air Portugal set to receive up to eight Airbus A350-900 aircraft from 2030 as the German aviation group seeks to strengthen its position in South America. The plans, outlined in Lisbon on October 15, 2026, also include expanding TAP’s fleet, developing Porto as a second long-haul base, and integrating operations across the two airline groups.
Lufthansa Group CEO Carsten Spohr described the proposed acquisition as an opportunity to secure a profitable European network carrier with a strong transatlantic position. The investment would give Lufthansa greater access to Brazil and other South American markets while establishing Lisbon Airport (LIS) as its westernmost and southernmost hub. The group also expects operational cooperation and coordinated schedules to generate up to €450 million in annual synergies.
TAP A350 Fleet Expansion
The proposed addition of eight Airbus A350-900s represents a key part of TAP’s long-term fleet strategy. According to the Portuguese government, the aircraft could join the airline from 2030, although their source and financing arrangements remain unclear.
TAP currently operates approximately 100 aircraft, with plans to increase the fleet to 117 by 2035. The airline could expand further to as many as 130 aircraft when Lisbon’s new airport opens, linking its fleet growth to longer-term infrastructure development.
Lufthansa also sees TAP’s relatively young fleet as an advantage for the wider group. However, the aircraft are leased and their payments are denominated in US dollars, exposing TAP’s financial performance to exchange-rate movements. Lufthansa Chief Financial Officer Till Streichert said the group would need to address this exposure as it moves towards full ownership.
Lisbon And Porto Hubs
Lisbon will play a central role in Lufthansa’s plans to expand its South American network.
Lufthansa currently holds around a 9% share of the Europe–South America market, placing it sixth among competitors, but its position could rise to approximately 20% with TAP, bringing it level with International Airlines Group (IAG).
The Portuguese capital offers a geographically convenient connection point for passengers travelling from France, Spain and other European markets to Brazil.
Instead of connecting through Frankfurt, Munich or Zurich, more passengers could transfer through Lisbon, improving the group’s access to a region where it has historically maintained a smaller presence.
Porto is also expected to become TAP’s second long-haul base, with eight long-haul aircraft stationed there.
The northern Portuguese city offers growth opportunities in Brazil and North America, while closer cooperation between TAP and Lufthansa Technik could strengthen aircraft maintenance and technical operations in the region.
Lufthansa Takeover Strategy
Lufthansa expects its investment to generate savings and additional revenue through coordinated flight schedules, joint purchasing, technical cooperation and cargo operations.
The projected annual synergies of up to €450 million do not depend on Lufthansa immediately acquiring a majority stake, according to Streichert, Aero Telegraph flagged.
The group has also negotiated governance arrangements that give it considerable influence from the outset.
Lufthansa will appoint the chief executive and hold three of four seats on TAP’s executive committee, while Portugal will retain a five-to-four majority on the board responsible for strategy and major investments. TAP’s share of Lufthansa’s dividend arrangements will also increase gradually, reaching as much as 75%.
The immediate transaction remains subject to approval from the European Commission. Spohr expects a smoother process than Lufthansa’s acquisition of ITA Airways, citing the limited overlap between TAP’s network and Lufthansa’s existing operations.
Ultimately, Lufthansa intends to acquire 100% of TAP, potentially leaving a small shareholding with employees. The group has already submitted a non-binding offer of €1.3 billion for the remaining 50.1%, with part of the consideration potentially paid in Lufthansa shares.
The proposed investment would give Lufthansa a stronger position in South America while bringing TAP closer to full integration into the group.
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