If you’ve ever booked a cheap business class award to Lisbon, or used Lisbon as a gateway into Europe, the airline that carried you just got a new partner in the cockpit. Portugal spent most of 2026 deciding who would buy into its national carrier, and two of Europe’s biggest airline groups fought hard for it. The Lufthansa TAP Air Portugal deal is now set, and it has real implications for how you’ll use your miles on the South Atlantic and across Europe.
Lufthansa Wins the TAP Air Portugal Privatization
Portugal’s Prime Minister Luis Montenegro announced the decision on October 14, 2026, after a Council of Ministers meeting. Lufthansa Group came out ahead of Air France-KLM once both groups had submitted improved final binding offers. In its official announcement, Lufthansa described its plan as an initial minority stake designed to grow TAP while keeping its Portuguese identity and strengthening the country’s links to North and Latin America.
The money breaks down like this. Lufthansa offered EUR 1.025 billion for a 44.9 percent stake. That figure could rise to as much as EUR 1.2 billion for 49.9 percent, because up to 5 percent of shares are first offered to TAP employees and a ticking fee applies. Under the privatization rules published in August, the chosen investor can also pick up any shares employees don’t buy.
Here’s the maths the press releases skip. EUR 1.025 billion for 44.9 percent implies a valuation of roughly EUR 2.28 billion for the whole airline. That’s our own calculation from the published figures, not an official number, and the upper EUR 1.2 billion figure isn’t directly comparable because it includes the ticking fee.
Why Portugal Picked Lufthansa Over Air France-KLM
Price did most of the talking. According to the Prime Minister, Lufthansa’s financial offer was 16 percent higher than its rival’s and carried less uncertainty. Portuguese media reported the gap at about EUR 163 million, with the government also weighing fleet investment and the proposed governance model.
Lufthansa also brought a long list of local commitments. Its proposal includes a planned EUR 500 million pilot training school in Tancos, an innovation centre in Aveiro and a corporate services centre, on top of the Lufthansa Technik maintenance site already under construction in Santa Maria da Feira near Porto.
One detail stands out in the governance language. Even though the stake is officially a minority, the Prime Minister said Lufthansa will be responsible for executive and operational management. In practice, Frankfurt will have a strong hand in how TAP is run.
| Lufthansa Group | Air France-KLM | |
|---|---|---|
| Outcome | Selected | Not selected |
| Alliance | Star Alliance (same as TAP) | SkyTeam |
| Stake sought | 44.9%, up to 49.9% | Up to 49.9% |
| Offer | Up to EUR 1.2 billion | About EUR 163 million lower |
| Pitch | Growth plus local investment, TAP brand kept | Lisbon as exclusive Southern European hub |
Air France-KLM had pitched Lisbon as its exclusive Southern European hub, which would have been a much bigger shake-up for your miles, since it would likely have meant TAP leaving Star Alliance. IAG, the parent of British Airways and Iberia, had already dropped out, leaving just the two finalists.
What the Lufthansa TAP Deal Means for Star Alliance Travelers
This is the part that matters for your points balance: nothing changes about alliance membership. TAP is already a Star Alliance member, just like Lufthansa. The ways you book TAP today, through Star Alliance programs like Air Canada Aeroplan or United MileagePlus, should keep working exactly as before.
If Air France-KLM had won, the story would have been very different. A move to SkyTeam would have pulled TAP flights out of Aeroplan and MileagePlus searches and pushed them toward Flying Blue. If you want a refresher on why that matters, our guide on why airline alliances matter for travel hacking covers it in detail. Lufthansa’s win is the status quo outcome for U.S.-based Star Alliance collectors.
Lufthansa also has a track record of buying airlines and keeping their brands. The group already includes SWISS, Austrian Airlines, Brussels Airlines and ITA Airways, and it framed its TAP offer around preserving the airline’s national identity. You shouldn’t expect TAP to disappear as a brand.
What About TAP Miles&Go?
Neither Lufthansa nor TAP has announced any change to TAP Miles&Go, TAP’s own loyalty program. Any talk of folding it into Lufthansa’s Miles & More is speculation right now, and you should treat any article claiming otherwise with caution.
What you can count on today: Miles&Go remains a Capital One transfer partner. According to TAP’s Capital One partner page, Venture, VentureOne, Spark Miles and Spark Miles Select cardholders can transfer at a 1:1 ratio with a 1,000-mile minimum. The name on your Capital One account and your Miles&Go account must match exactly, or the transfer can fail or be delayed.
Over the long run, it’s reasonable to expect closer cooperation between TAP and the Lufthansa Group airlines, such as better connections and more coordinated schedules. Program-level changes, if they come at all, would likely take years rather than months. Ownership changes have a way of reshaping loyalty programs eventually, which is why it pays to understand the devaluation of miles and points before you stockpile any single currency.
When Will the Lufthansa TAP Deal Close?
Not tomorrow. Lufthansa says it is finalizing the transaction documents with the Portuguese government and Parpublica, the state holding company, and expects to sign shortly. Completion still requires approval from the relevant authorities, and Portuguese reports say the government expects the operation to wrap up by early 2028.
Lufthansa also welcomed the government’s plan to start a process for TAP’s full privatization, and pointedly noted that its past majority acquisitions created extra benefits for everyone involved. Read that as a clear signal: Lufthansa would like to own more of TAP eventually.
Lufthansa Is Already Big in Portugal
This isn’t a new relationship. According to Lufthansa Group, its airlines have flown to Portugal for more than 70 years and currently operate 353 weekly flights to six Portuguese destinations, a 75 percent capacity increase over 2019. The group employs more than 500 people in the country today and expects that number to pass 1,000 direct jobs by 2030 once the new Lufthansa Technik site near Porto is running.
For you, that means Portugal is already well connected across the Lufthansa network through hubs like Frankfurt, Munich, Zurich, Vienna and Brussels. TAP’s long-haul strength, especially to Brazil and North America, fills a gap Lufthansa has on the South Atlantic. That’s exactly the market Lufthansa CEO Carsten Spohr highlighted when he called TAP a leading carrier on South Atlantic routes.
5 Smart Moves for Your Miles Right Now
- Don’t transfer points speculatively. Transfers to airline programs are one-way. Nothing about this deal makes TAP Miles&Go more valuable today, so only move Capital One miles when you have a specific award ready to book.
- Keep searching TAP through Star Alliance partners. Aeroplan and MileagePlus remain your go-to options for TAP flights. Compare prices across programs before you commit, and see our roundup of the best frequent flyer programs for U.S. travelers if you’re choosing where to focus.
- Use Lisbon and Porto as Europe gateways. TAP’s network makes Portugal a convenient connection point into the rest of Europe and onward to Africa and Brazil. Check routings via Lisbon against connections through Frankfurt or Munich.
- Set award alerts instead of checking manually. Tools like Seats.aero can watch TAP and Lufthansa Group availability for you. Our guide on how to find award availability when seats are limited walks through the process.
- Watch for official program announcements. If TAP Miles&Go or Miles & More announce changes, they’ll come with notice. Follow the programs’ own pages rather than rumours, and check back here for updates.
Takeaway
Lufthansa’s win in the TAP Air Portugal privatization is the least disruptive outcome for you as a U.S.-based points collector. TAP stays in Star Alliance, keeps its brand, and remains bookable through the programs you already use. The deal still needs regulatory approval and likely won’t close until early 2028, and no changes to TAP Miles&Go have been announced. Your best move is to keep booking TAP the same way you do today, avoid speculative transfers, and watch for official updates as Lufthansa takes on a bigger role in running the airline.
