TAP ends first half with almost €100 million loss amid rising fuel costs

Portuguese national airline TAP Air Portugal posted a net loss of 99.2 million euros in the first half of the year, driven largely by surging jet fuel costs linked to conflict in the Middle East. Despite the widening losses, the carrier achieved record passenger numbers and increased total operating revenue by more than four percent during the six-month period, demonstrating strong travel demand across its core international routes.

The airline's first-half net loss represents a 40 percent deterioration from the approximately 70 million euro loss recorded during the same period in the previous year. However, TAP generated total operating revenues of 2,039.8 million euros between January and June, marking a 4.3 percent increase. Ticket revenue reached 1,829.2 million euros, up 4.4 percent, fueled by robust passenger demand in strategic markets, particularly across Europe and South America.

Operational performance reached historical highs during the first six months, with TAP carrying 8.2 million passengers, a 4.2 percent increase year-over-year. The airline operated 57.5 thousand flights in the half-year period, representing a 0.3 percent rise in flight volume.

Rising fuel expenses severely impacted the carrier's financial results. Jet fuel costs climbed 18.7 percent overall during the first half and accelerated dramatically in the second quarter, jumping 52.3 percent. Consequently, recurring EBITDA stood at 181.9 million euros, while recurring EBIT registered a negative 83.7 million euros.

TAP Chief Executive Officer Luís Rodrigues explained that the rapid spike in fuel prices created an immediate financial burden that could not be instantly offset by fare adjustments, as a significant portion of tickets for the second quarter had already been sold before fuel prices escalated. Rodrigues highlighted that the airline maintained a resilient performance despite the challenging backdrop, noting that the first-half financial results do not yet incorporate the profitable summer peak travel season.

The financial reporting coincides with major strategic transitions for the carrier. Following the completion of its Restructuring Plan, TAP launched its Strategic Plan 2026-2035 and the Horizon Programme, aimed at digital innovation, continuous improvement, and long-term sustainable growth.

The results also arrive at a pivotal moment for TAP's ownership structure. State holding company Parpública is submitting a final report to the Portuguese government, led by Prime Minister Luís Montenegro, evaluating binding takeover bids. Major European aviation groups Air France-KLM and Lufthansa submitted proposals to acquire a 44.9 percent stake in the Portuguese flag carrier, clearing the way for the government to decide on the airline's partial privatization.

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