Lufthansa Group is seeking to acquire a 19.9 per cent stake in Portugal’s flag carrier TAP, according to multiple news reports.

The move comes after the European aviation giant in July received European Commission approval of its proposed acquisition of ITA Airways, where it will take an initial 41 per cent stake in the Italian carrier.

Speculation of yet another merger was raised earlier this week when Lufthansa CEO Carsten Spohr on Monday met with Portuguese government officials to “formally signal” the company’s interest in the state-owned carrier, according to a Reuters report.

The 19.9 per cent stake is of particular interest, Italian newspaper Corriere della Sera reported, because it would allow Lufthansa to remain below the 20 per cent threshold that would require approval from the EU’s antitrust regulator.

Lufthansa Group rivals IAG and Air France-KLM have also previously expressed interest in TAP after the privatisation process was formally announced last September.

TAP posted a net profit of €400,000 for the first half of 2024, with €72.2 million in net profit generated in the second quarter offsetting a negative Q1 result.

In H1 financial statements posted in August, TAP CEO Luís Rodrigues said the carrier has “continued the necessary path of structural transformation” ahead of the government’s plans to sell off a 51 per cent stake.

As of 30 June 2024, the carrier recorded a “strong” liquidity position of €1.2 billion, an increase of €386.3 million compared to the end of 2023.

Rodrigues added: “We continue on the path we set out to follow, with the commitment of our people and the support of our stakeholders: to establish TAP as a sustainably profitable company and one of the most attractive in the industry.”