Lufthansa says TAP would boost South America position

Lufthansa CEO Carsten Spohr said TAP would be an “excellent complement” to the German airline group, helping it become a market leader on routes between the European Union and South America.

Speaking in an online press conference after Lufthansa’s second-quarter results, Spohr said that, including ITA and TAP, the group would have roughly the largest market share in Latin America. A presentation published on Lufthansa’s investor relations website showed the group with a 9% share of the EU-South America market, while TAP has 11%, which would allow Lufthansa to match IAG’s 20% and move ahead of Air France-KLM’s 17%.

Spohr said TAP would give Lufthansa a much stronger presence in Portugal, Latin America, Argentina and Brazil. Last week, Lufthansa confirmed it had submitted a binding proposal for the Portuguese airline, saying an initial minority stake would be aimed at building a long-term partnership and securing TAP’s future as Portugal’s national carrier.

Lufthansa has said it wants to strengthen TAP within the group while keeping Lisbon as a strategic hub and positioning the airline as the leading carrier for the South Atlantic. The company also pointed to its experience integrating SWISS, Austrian Airlines, Brussels Airlines and ITA Airways while preserving their national identities.

The comments came as Lufthansa reported weaker quarterly earnings. Net profit fell to €123 million in the second quarter from €1 billion a year earlier, while adjusted EBIT dropped to €383 million from €870 million, hit by higher jet fuel costs linked to the war in Iran and at least €150 million in strike-related financial charges. Lufthansa shares were down 10.35% at €8.27.

Originally published at Eco.pt