TAP Air Portugal reported a net loss of €99.2 million in the first half of 2026 as higher fuel costs weighed heavily on its finances, despite stronger revenues and a record number of passengers.
The loss was 40% worse than the roughly €70 million recorded during the same period last year. The airline said the sharp rise in fuel prices, particularly jet fuel, was one of the main factors behind the deterioration.
TAP carried 8.2 million passengers between January and June, an increase of 4.2% compared with the first half of 2025. The airline operated 57,500 flights during the period, up 0.3% year on year.
Passenger demand remained strong across TAP’s main markets, particularly Europe and South America. Ticket revenue increased 4.4% to €1.83 billion, while total operating revenue rose 4.3% to €2.04 billion.
However, fuel costs increased by 18.7% during the first six months of the year. The impact became more severe in the second quarter, when fuel expenses jumped 52.3% amid higher energy prices linked to conflict in the Middle East.
Recurring EBITDA stood at €181.9 million, while recurring earnings before interest and tax were negative at €83.7 million.
TAP chief executive Luís Rodrigues said the increase in jet fuel prices had placed significant pressure on the airline’s second-quarter performance.
He said higher fuel expenses were felt immediately, while efforts to offset those costs through higher revenues took longer to have an effect because many second-quarter tickets had already been sold before fuel prices increased.
Despite the difficult environment, Rodrigues said TAP had maintained a resilient performance, supported by increased capacity and improved revenue generated from each unit of capacity.
The airline also completed its restructuring plan during the first half of the year and launched its Strategic Plan for 2026 to 2035. The company said its new Horizon Programme will focus on digital development, innovation and operational improvements.
The results were released as TAP enters an important period regarding its future ownership. Parpública is preparing to submit a final assessment to the Portuguese government on competing offers for a 44.9% stake in the airline.
Air France-KLM and Lufthansa submitted binding offers for the stake on July 29. Parpública’s assessment is expected to help the government led by Prime Minister Luís Montenegro determine which bidder should acquire a major share of the national carrier.
The first-half results do not include the crucial summer travel period, which traditionally represents the busiest and most profitable part of the year for airlines.
