TAP Air Portugal recorded a net profit of €4.1 million for 2025, announced on April 9, 2026, marking its fourth straight year of profitability since emerging from losses after renationalization and restructuring post-Covid-19.
The result reflected a €42 million corporate income tax adjustment due to Portugal’s progressive cut in its corporate tax rate. Operating revenue reached €4.313 million, a 1.2% rise from 2024, driven by a 10.7% jump in maintenance revenues while passenger revenue increased 0.8%. The carrier transported 16.7 million passengers, up 3.4% year over year, with load factor improving to 84.2%, a 1.9 percentage point gain.
Capacity expanded 3.1% and revenue passenger kilometers grew 5.5%, but PRASK dropped 2.3% to 6.96 cents amid competition in key markets and softer North American demand. Recurring operating costs climbed 3.6% to €4.070 million, with staff costs up 7.9%, traffic costs 6.7%, and depreciation 10.8%; fuel costs fell 5.4%. Recurring CASK rose 0.5% to 7.36 cents. Recurring EBITDA stood at €742.9 million (17.2% margin) and EBIT at €243.4 million (5.6% margin).
Liquidity reached €765.3 million by December 31, 2025, up €113.7 million from 2024, with net debt to EBITDA at 2.6x. The results coincide with completion of TAP’s EU-approved restructuring plan following €3.2 billion in state aid during the pandemic. The European Commission confirmed timely implementation of measures for financial viability, granting an extension to June 30, 2026, for divesting Cateringpor and SPdH, with €24.99 million to be returned to the state.
CEO Luís Rodrigues stated plans to accelerate 2026 priorities, including transatlantic growth with two new Brazil routes for a total of 15, 10 exclusive to TAP, plus Porto expansion and a maintenance hub. The airline anticipates resilient demand, better load factors and unit revenues despite capacity increases, with fuel costs offset by market pricing.
This comes as the Portuguese government advances sale of a 44.9% stake plus 5% for employees. Lufthansa Group and Air France-KLM submitted non-binding offers on April 2, 2026; IAG withdrew over minority structure concerns. Infrastructure Minister Miguel Pinto Luz expects a winner by summer 2026.