TAP Air Portugal with Profits for the Fourth Consecutive Year

Positive net income of 4.1 million in 2025

Operating revenue: EUR 4.3 billion (+1.2% vs. 2024).

Recurring EBITDA: EUR 742.9 million (17% margin).

Recurring EBIT: EUR 243.4 million (6% margin).

Net profit: EUR 4,1 million. Excluding extraordinary effects of corporate income tax adjustments, would have amounted to EUR 46 million.

Passengers carried: 16.7 million (+3.4% vs. 2024).

Load factor: 84.2% (+1.9 p.p.).

It is the fourth consecutive year of profitability. In 2025, TAP Air Portugal reported a positive net income of EUR 4.1 million. Recurring net income would have amounted to EUR 46 million, if excluded the adjustment for corporate income tax rates.

Within a context marked by uncertainty and cost pressures across the industry, the airline strengthened its financial position and fulfilled the operational and financial commitments set out in the Restructuring Plan approved by the European Union.

Operating revenue totalled EUR 4,313 million in 2025 (+1.2% compared with 2024), driven mainly by passenger revenues (+0.8%) and the Maintenance business (+10.7%). Capacity increased by 3.1% and RPK grew by 5.5%, raising the load factor to 84.2% (+1.9 p.p.). The evolution of unit revenues reflected increased competition in core markets and macroeconomic effects in the North American market, with PRASK standing at 6.96 cents (-2.3%).

Recurring operating costs reached EUR 4,070 million in 2025 (+3.6%), with increases in traffic costs (+6.7%), staff costs (+7.9%) and depreciation and amortisation (+10.8%), partially offset by a reduction in fuel costs (-5.4%). Recurring CASK rose by 0.5% to 7.36 cents, whilst recurring CASK excluding fuel rose by 3.7% to 5.57 cents.

TAP registered a recurring EBITDA of EUR 742.9 million (margin of 17.2%) and a recurring EBIT of EUR 243.4 million (margin of 5.6%), in a year marked by a particularly challenging first quarter.

Completion of the Restructuring Plan

In 2025, TAP fulfilled the operational and financial commitments set out in the Restructuring Plan approved by the European Union. Brussels acknowledged that the required operational measures had been implemented in a timely manner and that the airline achieved results that restore its long-term viability. An extension of the deadline for the divestment of the shareholdings in Cateringpor and SPdH (Sociedade Portuguesa de Handling, S.A.) until 30 June 2026 was also approved, with TAP committing to return EUR 24.99 million to the shareholder within the scope of this extension.

Financial position

As of 31 December 2025, TAP presented a liquidity position of EUR 765.3 million, an increase of EUR 113.7 million compared with 31 December 2024, and a Net Debt/EBITDA ratio of 2.6x.

Outlook for 2026

TAP’s strategy for 2026 is anchored on disciplined and sustainable growth, supported by the expansion and modernisation of the fleet with Airbus NEO aircraft, thereby enhancing operational efficiency and sustainability. Growth is expected to be driven primarily by the transatlantic network, with a focus on Brazil, and by the expansion of operations from Porto, including new routes and the development of a maintenance hub. In parallel, the airline will continue to invest in the product and the customer experience, including a new cabin and improvements to the onboard offering.

Resilient demand and positive booking momentum should support higher load factors and improved unit revenues, despite the capacity growth. The evolution of fuel prices is expected to be partially mitigated through pricing actions aligned with market trends, whilst maintaining the focus on core markets and revenue quality.

Luís Rodrigues, CEO of TAP, states that “TAP delivered solid results in FY25, supported by resilient passenger demand across the network, mainly in the second half of the year, and a strong contribution from our Maintenance business, which continued to increase its contribution to total revenues. Despite a challenging environment, marked by cost inflation and significant supply chain and operational constraints across the industry, we maintained resilient margins and strengthened the Company’s financial position. This performance underpinned a positive net income for the fourth consecutive year.

This year also marked an important milestone for TAP. The European Commission acknowledged the completion of the operational and financial commitments under the EU‑approved Restructuring Plan, confirming TAP’s successful transformation to deliver long‑term viability and balanced growth.

In 2026, the Executive Committee will accelerate the execution of the initiatives already defined, with a clear focus on operational priorities. This process will be accompanied by the start of a new phase of disciplined and sustainable growth, with a stronger focus on transatlantic expansion, namely with two new destinations in Brazil, reinforcing our leadership and network in this market to a total of 15 destinations, of which 10 are exclusively served by TAP. In addition, we will expand our operations from Porto, with several new routes and the investment in a new maintenance hub.

Finally, I would like to thank all our people for their commitment and resilience, and our stakeholders for their continuous support. Their dedication was critical to delivering this performance in 2025, and it will remain essential as we enter this new chapter for TAP.”

Analysis of the fourth quarter of 2025 (4Q25)

In 4Q25, TAP carried 4 million passengers, an increase of 4.9% compared with the fourth quarter of 2024 (“4Q24”), having operated approximately 29 thousand flights, an increase of 1.1% compared with the same period the previous year.

Operating revenues totalled EUR 1,032 million in 4Q25, an increase of 3.7% compared with 4Q24, mainly supported by the performance of passenger revenues, which increased by EUR 32.8 million (+3.8%) to EUR 904.7 million, driven by higher capacity and higher unit revenues, with PRASK increasing by 0.2% to EUR 6.64 cents.

Maintenance revenues increased by EUR 6.8 million (+9.5%) compared to 4Q24, reaching EUR 77.9 million in 4Q25, supported by stable activity levels amid ongoing supply chain constraints and by a price effect associated with higher material costs and higher‑value‑added services.

Cargo and Mail revenue amounted to EUR 36.9 million in 4Q25, decreasing by EUR 8.6 million (–18.9%) year‑on‑year, reflecting lower chargeable weight and lower yields during the period.

In 4Q25, recurring operating costs totalled EUR 1,016 million, an increase of 1.7% (+EUR 16.7 million) compared to 4Q24. The increase was mainly driven by higher fuel costs (+EUR 6.5 million or +2.7%), and by higher aircraft maintenance costs (+EUR 5.4 million or +29.6%) and materials consumed (+EUR 13.6 million or +25.0%), both reflecting increased material prices, applied to TAP’s fleet and to external maintenance services, respectively. Overall CASK from recurring operating costs decreased by 1.8% (–EUR 0.14 cents) year‑on‑year to EUR 7.46 cents. Excluding fuel, recurring CASK decreased by 2.1% (–EUR 0.12 cents) to EUR 5.67 cents.

Recurring EBITDA amounted to EUR 151 million in 4Q25, with a margin of 14.6%, increasing EUR 31.7 million year‑on‑year. Recurring EBIT totalled EUR 16.2 million, with a margin of 1.6%, improving EUR 20.2 million compared to 4Q24. Including non‑recurring items, EBIT amounted to EUR 36.9 million.

Net income amounted to EUR –51.0 million in 4Q25, significantly impacted by an external effect, namely a EUR 42.0 million corporate income tax adjustment related to the re-measurement of deferred tax assets following the progressive reduction of the corporate tax rate introduced by Law 64/2025. Excluding this effect, net income would have been EUR –9.1 million, representing an improvement of EUR 74.9 million compared to 4Q24.

The full Earnings Release can be read here.

TAP Air Portugal currently flies from London Heathrow, London Gatwick and Manchester airport in the UK and from Dublin in Ireland to Lisbon and Porto with onward connections to Brazil, Africa, Madeira, Azores, the USA and Canada.  TAP has a stop over programme allowing passengers to stop in either Lisbon or Porto on long haul journeys for up to 7 days for no additional air fare.

Tickets for flights can be booked at https://www.flytap.com/en_gb/