TAP results contrast with the sector’s strong performance
TAP was the only airline in Europe to record a drop in revenue in the first half of the year and to end June with losses.
Looking at TAP’s accounts for the first half of the year, no one would say that this was a positive period for European aviation. The figures for the Portuguese airline, whose privatisation began this summer, are very much at odds with the sector and the companies in line to become its shareholders.
Data from IATA, the international association for the sector, point to a 5% growth in sales in Europe between January and May, despite the context of international uncertainty and anaemic growth in the region’s economy.
The figures for the main airlines in the first half of the year reflect this trend, with increases ranging from 2% in the case of Swiss, part of the Lufthansa group, to 11.6% for Ireland’s Aer Lingus, part of the IAG group. TAP was left out of this performance, recording a 1% reduction in operating revenue. In the neighbouring country, Iberia, also part of the IAG group, increased sales by 11.4%.
Even looking only at the second quarter, the 1.7% increase in revenues for the Portuguese carrier falls short of the 3% increase for Lufthansa, the 4% increase for Air France-KLM and the 6.8% increase for the IAG group, which also owns British Airways and Aer Lingus.
The Portuguese airline also stands out in terms of operating results, with an 85% drop in the first six months of 2025 compared to the same period last year. These improved significantly in the IAG group (43%), increased 17-fold at Air France, and rose by 332 million at Lufthansa (they had been negative in 2024).
TAP’s operating result is penalised by increased costs (3.8%), particularly personnel costs, which rose by 13.6%, reflecting the salary and remuneration increases provided for in the new collective agreements.
To get an idea of the relative weight of personnel costs in TAP’s accounts, in the second half of the year these already represent 24.7% of revenues, 5.4 percentage points more than in June 2024. The weight already exceeds that of the IAG group (20.3%) and is close to that of the Lufthansa group (26.2%).
The Portuguese airline no longer stands out in terms of profitability, with an operating margin of 0.9% in the first half of the year, well below the 5.6% achieved last year. In this league, no one beats the IAG group, which increased its margin to 11.8%.
The contrast with its competitors extends to profits, where once again TAP is the only one to record losses, of €70.7 million, worse than in the same period last year. The Lufthansa and Air France-KLM groups also closed the first six months of last year in the red, but this year they have already posted significant profits. The IAG group stands out with a net profit of €1.3 billion.
The next quarter could bring more cheerful figures for TAP, as it is traditionally the best for aviation, covering the strongest months of the summer. If it achieves a profit close to that recorded between July and September last year, of €117.8 million, the company has a good chance of getting out of the red.
The carrier states in its results announcement that “reservations are currently in line with the previous year, despite increased capacity and the trend towards shorter booking windows”.
