Frankfurt, Germany, April 1, 2026 (Lusa) - Lufthansa said the energy crisis caused by the conflict in the Middle East should not significantly change TAP's valuation during the privatisation process.
Group strategy manager Tamur Goudarzi Pour told journalists at the company's Frankfurt headquarters on Wednesday that Lufthansa includes immediate shock effects, such as higher fuel costs and traffic restrictions, in its valuation models. However, he explained the airline does not adjust bid values based on weekly or short-term fluctuations.
"We cannot change the price every three weeks when there is a crisis," he said. "We must look at what is structural in the sector and internalise that in our valuation, without changing the price for every new shock."
Goudarzi Pour said the group uses scenarios to test the resilience of its plans and the target airline's plans. These projections consider different costs, demand, and fuel availability as part of due diligence, a detailed analysis of a company's accounts and risks before an acquisition.
He explained the process involves a broad evaluation of operational, financial, and strategic factors to determine if an investment remains sustainable over several years.
The manager acknowledged the aviation industry faces a "structural crisis" with uncertainties shaping routes, capacity, and demand.
He said that Lufthansa would not take a reactive stance. "We must always internalise what is structural, not what is transitory or volatile," he said.
Goudarzi Pour said Lufthansa adjusted its flight schedule, removing connections to some Middle Eastern cities until late October due to the geopolitical and energy situation. The company is reallocating capacity to destinations with more stable demand.
Pour said the offer for TAP reflects the most recent evaluations, though subsequent negotiations could deepen this understanding.
"A non-binding offer price is a starting point. Then there are conversations and the process evolves," he added.
He highlighted that global connectivity, network complementarity, and the strategic location of hubs such as Lisbon and Porto reinforce the long-term valuation.
He added that Lufthansa's risk management mechanisms, including fuel hedging, provided a robust basis for evaluating airlines during volatility.
Due diligence also covered litigation and legal risks. This included a claim by Brazil's airline Azul for €189 million over an unpaid loan, and several labour lawsuits by crew members are awaiting court decisions.
The tender specifications provide for the sale of up to 44.9% of TAP's capital, with 5% reserved for workers. Any unsubscribed shares remain subject to the future buyer's right of first refusal.
Air France-KLM and International Airlines Group (IAG), owner of Iberia, expressed interest in the privatisation.
Non-binding proposals must be submitted to Parpública, the state holding company, by 2 April 2026. These must include financial components, such as earn-outs (future profit-based payments), as well as strategic plans.
Bidders must present industrial and strategic plans, synergies, and guarantees to preserve TAP's status as an EU air operator.
*** The journalist travelled at the invitation of Lufthansa*** SCR/LYT // ADB Lusa
