Portugal’s TAP Air Portugal reported a 92% drop in 2025 net profit to €4.1 million, primarily due to a €42 million one-off charge from revaluing deferred tax assets. The adjustment followed parliament’s decision in November to cut the corporate tax rate from 20% to 17% by 2028.
Despite the profit decline, the airline achieved solid operational performance. Revenue grew 1.2% to €4.31 billion, driven by a 1.6% increase in passengers to over 16 million. EBITDA rose 4.4% to €725.8 million, with the margin improving to 16.8% from 16.3% in 2024. Operating costs increased 1.8% to €4.02 billion, offset partly by lower fuel expenses. The carrier recorded a €51 million loss in the fourth quarter.
In parallel, TAP is expanding its Brazil network, launching new routes to São Luís starting October 26, 2026, with twice-weekly flights via Fortaleza, bringing its Brazilian destinations to 15. A Lisbon-Curitiba service begins July 2, 2026, with three weekly flights on A330-200 aircraft via Rio de Janeiro, raising its Brazil cities served to 14 ahead of São Luís. These moves reinforce TAP’s extensive Europe-Brazil connectivity amid bids from Air France-KLM and Lufthansa for a stake in the carrier.