Lufthansa Eyeing TAP, Air Europa Investment

Lufthansa Group is weighing potential investments in both TAP Air Portugal and Spanish leisure carrier Air Europa to strengthen its competitiveness between Europe and South America.

The German group recently finalized its 41% stake in Italy’s ITA Airways, with plans to move to full ownership over time. In late January, Lufthansa also announced an investment in Latvian carrier airBaltic, which can be converted to a 10% stake.

Buying into airBaltic cements Lufthansa’s wet-lease arrangements, while ITA has the potential to strengthen Lufthansa’s African and Latin American network.

“That gap in South America is definitely something we want to close even further, beyond ITA’s potential,” Lufthansa Chief Commercial Officer Dieter Vranckx said. “That’s clearly TAP or Air Europa territory.”

When asked whether it would be either TAP, or Air Europa, Vranckx said, “We are looking at both. That doesn’t mean that the only option is to take both or nothing. ‘We’re looking at both’ means we’re talking with both parties.”

International Airlines Group (IAG) still holds 20% of Air Europa; its plans to acquire the remaining 80%—currently owned by Spain’s Globalia—fell through in August 2024.