TAP Air Portugal saw its losses widen in the first half of the year, driven by rising fuel costs despite record passenger numbers and increased revenue.

TAP Air Portugal reported a net loss of 99.2 million euros for the first half of the year, marking a 40% decline compared to the same period last year. The airline attributed the negative result to rising fuel costs, which were exacerbated by the conflict in the Middle East.

Revenue and Passenger Growth

Despite the net loss, TAP saw positive growth in other areas. Total operating revenue reached 2,039.8 million euros, a 4.3% increase, while ticket revenue rose 4.4% to 1,829.2 million euros. The airline carried 8.2 million passengers during the first six months of the year, a 4.2% increase compared to the same period in 2025.

Impact of Fuel Costs

Fuel costs rose 18.7% over the first half of the year, with a 52.3% jump in the second quarter alone. CEO Luís Rodrigues noted that these costs impacted the company immediately, while revenue-side mitigation measures were slower to take effect because many tickets had been sold before the price increases occurred.

Strategic Outlook and Ownership

The airline recently completed its Restructuring Plan and launched a new Strategic Plan for 2026-2035. Meanwhile, the Portuguese government is reviewing binding offers from Air France-KLM and Lufthansa to acquire a 44.9% stake in the company, with a final report on the bids expected to be delivered by Parpública.