Operating revenue rose 4.3% to €2.04 billion and load factor reached 85.4%, but a sharp rise in jet fuel costs weighed heavily on earnings, especially in the second quarter.
TAP Air Portugal carried 8.2 million passengers in the first half of 2026 as operating revenue rose to €2.04 billion.
- TAP carried 8.2 million passengers in the first half of 2026, up 4.2% year on year, while traffic grew 5.9% and load factor improved 3.4 percentage points to 85.4%.
- Operating revenue increased 4.3% to €2.04 billion and passenger revenue rose 4.4% to €1.83 billion.
- Fuel costs increased 18.7% in the half-year and 52.3% in the second quarter, contributing to a first-half net loss of €99.2 million.
- TAP ended June with €1.22 billion in cash and cash equivalents after issuing €350 million in senior notes, while beginning execution of its new 2026–2035 Strategic Plan.
(NEWS) LISBON, Portugal, 2026-Aug-31 — /Travel PR News/ — TAP Air Portugal carried more passengers and generated higher revenue in the first half of 2026, but a steep rise in jet fuel costs erased much of the benefit and pushed the airline to a €99.2 million net loss.
According to TAP’s preliminary, unaudited first-half results, operating revenue reached €2,039.8 million, up 4.3% from the same period of 2025, while passenger revenue increased 4.4% to €1,829.2 million. The airline carried 8.2 million passengers, a 4.2% increase, across 57,515 departures, up only 0.3% year on year.
The gap between traffic and capacity was particularly important. Revenue passenger kilometres increased 5.9%, while available seat kilometres rose 1.7%, lifting load factor by 3.4 percentage points to 85.4%. TAP said the revenue improvement was supported by higher capacity and a 2.7% rise in passenger unit revenue, with South America and Europe performing especially well during the first quarter.
Fuel costs overwhelm stronger commercial performance
The main pressure point was fuel. TAP’s first-half aircraft fuel bill rose by €89.4 million, or 18.7%, to €566.4 million. The impact became much more severe in the second quarter, when fuel costs jumped 52.3% year on year to €370.2 million.
That increase pushed recurring operating costs up 9.6% in the half-year to €2,123.5 million. Employee costs also rose 7.5% to €519.3 million, reflecting higher headcount and collective labour agreement increases, while depreciation and amortisation increased 9.8% following continued fleet investment.
Recurring EBITDA fell to €181.9 million from €259.2 million a year earlier, giving a margin of 8.9%. Recurring EBIT swung to a loss of €83.7 million from a €17.3 million profit in the first half of 2025. The net result deteriorated to a €99.2 million loss from a €70.7 million loss a year earlier, despite €34.2 million in foreign-exchange gains.
| First-half indicator | 1H 2026 | Year-on-year change |
|---|---|---|
| Passengers | 8.2 million | +4.2% |
| Flights operated | 57,515 | +0.3% |
| Load factor | 85.4% | +3.4 p.p. |
| Operating revenue | €2,039.8 million | +4.3% |
| Passenger revenue | €1,829.2 million | +4.4% |
| Recurring EBITDA | €181.9 million | -€77.3 million |
| Recurring EBIT | -€83.7 million | -€101.0 million |
| Net result | -€99.2 million | -€28.5 million |
Second-quarter pressure was sharper
The second quarter illustrates how quickly the cost environment changed. TAP carried 4.5 million passengers, up 2.5%, while traffic increased 2.4% and capacity slipped 0.2%. Load factor improved 2.2 percentage points to 87.2%.
Operating revenue, however, was broadly flat at €1,125.3 million, down 0.6% year on year, and passenger revenue was almost unchanged at €1,018.9 million. TAP said a large share of second-quarter revenue had already been booked when fuel prices began to rise, limiting how quickly the airline could adjust fares and revenue management to offset the cost increase.
Recurring EBITDA for the quarter fell to €86.4 million from €256.3 million, while recurring EBIT dropped to a €47.6 million loss. The second-quarter net result was a €59.3 million loss, compared with a €37.5 million profit in the same quarter of 2025.
South America and Europe support unit revenue
TAP said unit revenue performance varied significantly by region in the second quarter. Europe improved by 2% and Africa by 3%, while North America declined 7%, reflecting increased capacity and pressure on Economy cabin fares. Business-cabin revenues improved, but not enough to offset weaker Economy performance.
June showed some improvement, according to the airline, with network passenger unit revenue moving positively as South America strengthened and North America stabilised. TAP also introduced Economy Prime in June as a new premium-economy-style cabin proposition, although the company said its financial contribution was still limited in the quarter.
On the network side, TAP resumed seasonal services from Lisbon to Ibiza, Alicante, Palma de Mallorca and Menorca, together with its seasonal long-haul service to San Francisco via Terceira.
Liquidity strengthened despite weaker earnings
TAP ended June with €1,222.1 million in cash and cash equivalents, an increase of €456.7 million from the end of 2025. The increase was supported by a €350 million senior notes issuance completed during the second quarter, which the airline said diversified its financing sources and extended its debt maturity profile.
Chief executive Luís Rodrigues said the bond was issued at the lowest credit spread TAP has achieved for an instrument of this type. Net financial debt fell by €44.9 million, although the Net Debt/EBITDA ratio increased from 2.6x at the end of 2025 to 2.8x at 30 June because trailing recurring EBITDA weakened.
Restructuring closes as a new decade-long plan begins
The half-year also marked the completion of TAP’s Restructuring Plan, which the company said has been acknowledged by the European Commission, and the beginning of its Strategic Plan 2026–2035. The new plan is focused on long-haul growth, product differentiation, new revenue streams and digital transformation through the Horizon Programme.
Fleet renewal remains part of that strategy. TAP had 101 aircraft in operation at the end of June, two more than at the end of the previous quarter. The airline said 72% of its medium- and long-haul operating fleet consisted of NEO Family aircraft, up from 71% a year earlier.
For the remainder of 2026, TAP said booking momentum remains resilient and unit-revenue trends are positive, but it continues to monitor fuel-price volatility, geopolitical developments and the wider economic environment. Revenue management, hedging, cost discipline and fleet renewal are expected to remain central to efforts to absorb fuel pressure while preserving liquidity and network growth.
