TAP sees sharp fall in earnings as costs bite
August 29, 2025
TAP Air Portugal has reported a steep fall in profitability for the first half of 2025, with net income for the second quarter sliding to €37.5 million – 42.5% down on a year ago.
While passenger numbers and revenue saw modest growth, higher costs and competitive pressures weighed heavily on the carrier’s results.
TAP profits slump
TAP, currently undergoing partial privatisation, posted a net profit of €37.5 million ($43.9 million) for the April–June period.
For the first six months of 2025 the carrier reported a net loss of €70.7 million, nearly three times higher than the deficit recorded in the same period last year.
For the April–June period, the Lisbon-based airline recorded operating revenue of €1.13 billion, up 1.7% year-on-year, driven largely by a 3.1% rise in passenger revenue.
Recurring EBITDA came in at €256 million, giving a margin of 23%, while recurring EBIT stood at €136.5 million.
There were other reasons to be optimistic about TAP’s future. The airline carried 4.4 million passengers during the quarter, a 4.5% increase compared with last year, with load factor improving by 2.3 points to reach 85%.
‘Positive performance in the second quarter’
Luís Rodrigues, CEO of TAP, said: “After a challenging start to the year, TAP recorded a positive performance in the second quarter, with an increase in operations and revenues compared to the same period last year.
“This dynamic translated into solid operating results, helping to partially offset the impact of extraordinary events in the first quarter and reinforcing both the resilience of our teams and the robustness of our network.
“We continue to operate in a highly competitive environment, with pressure on unit revenues and persistent operational challenges — particularly affecting punctuality.
“Nevertheless, we recorded a year-on-year improvement in regularity during the quarter. As we navigate one of the most operationally challenging summers in recent history, with severe border control constraints at domestic airports strongly impacting our activity, we remain focused on ensuring reliable operations while working to advance the national aviation ecosystem.”
He added: “As we move beyond the Restructuring Plan, our priorities remain clear: to transform TAP into a consistently profitable and attractive company, consolidating operational efficiency and financial sustainability.
“This journey is only possible thanks to the continued support of our stakeholders and, above all, the dedication of our people.”
Fall in operating revenues
Despite stronger results in the second quarter, the airline’s first-half performance paints a more sobering picture. TAP carried eight million passengers in the first six months of the year, a rise of 2.2% on the same period in 2024, but operating revenues fell by 1% to €1.95 billion.
Recurring EBITDA dropped 18.3% to €259 million, while recurring EBIT collapsed by 84.5% to just €17 million.
The decline highlights the mounting pressures faced by TAP as it emerges from its restructuring programme.
The airline has nevertheless continued to expand its network, reopening four seasonal Mediterranean routes from Lisbon during the summer season and relaunching long-haul services to destinations including San Francisco, Los Angeles and Porto Alegre, as well as domestic routes linking Faro to Funchal.
