TAP Air Portugal reported a 4.3% increase in operational revenue to over 2 billion euros for the first half of 2026, driven by passenger traffic and higher prices per seat. The airline transported 8.2 million passengers between January and June, a 4.2% rise, with load factors climbing to 85.4% as traffic grew faster than capacity. However, soaring fuel costs and rising operating expenses have severely impacted the carrier’s profitability.
Despite the top-line growth, TAP struggled to maintain margins. The company recorded a net loss of 99.2 million euros for the first half of the year, a deterioration of 28.5 million euros compared to the same period in 2025. The operational result swung from a profit of 17.3 million euros to a loss of 83.7 million euros. The airline attributes this widening gap primarily to an 18.7% jump in fuel costs, which added 89.4 million euros to the bill.
Personnel expenses also increased by 7.5% to 519.3 million euros, while depreciation and impairment charges rose by 9.8%. The pressure was felt most acutely in the second quarter, where fuel costs surged by 52.3% to 127.1 million euros, contributing to a quarterly net loss of 59.3 million euros. The quarterly revenue of 1.125 billion euros remained nearly flat, but the spike in operating costs wiped out the progress made in the first three months of the year.
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TAP managed to improve its balance sheet despite the operational losses. The company held 1.22 billion euros in cash at the end of June, a 456.7 million euro increase compared to the end of 2025. This financial strength allowed the airline to issue 350 million euros in senior bonds during the second quarter to extend debt maturity and diversify funding sources. Consequently, net financial debt decreased by 2.1% to 787.1 million euros.
On the operational front, TAP is actively modernizing its fleet. The airline operated 101 aircraft at the end of June, an increase of two from the previous quarter. It noted that 72% of its medium and long-haul fleet is now comprised of Airbus A320neo family aircraft. The carrier also expanded its seasonal route network from Lisbon to destinations like Ibiza, Alicante, Palma de Majorque, and Minorque, as well as a seasonal service to San Francisco via Terceira. Management remains focused on revenue management and cost control to handle volatile fuel prices and geopolitical risks. The company projects a solid booking momentum and favorable unit revenue prospects for the remainder of the fiscal year. As part of its long-term strategy, TAP has adopted a new plan for 2026–2035 aimed at developing long-haul routes, differentiating its product, and creating new revenue streams.