Brussels closes TAP restructuring plan ahead of sale

The European Commission has told Portugal’s government that TAP’s restructuring plan has been successfully completed, in a step the Infrastructure Ministry said brings more predictability and clarity to the airline’s ongoing privatisation. The decision removes restrictions tied to state aid and allows TAP to move into its next phase.

The plan followed the pandemic shock and was approved by Brussels in December 2021 after TAP received a total of €3.34 billion in public support. Under the restructuring terms, the airline had to cut costs, including through layoffs and temporary pay cuts, hand over nine pairs of take-off and landing slots at Lisbon airport to easyJet, and accept limits on fleet growth and acquisitions.

TAP had been due to complete the plan by the end of last year, but obtained a six-month extension because it had not yet finalised the sale of 51% of Cateringpor and its 49.9% stake in Sociedade Portuguesa de Handling, formerly Groundforce. Those assets were later sold to Switzerland’s Gate Gourmet and the UK’s Menzies Aviation, respectively, allowing the final conditions set by Brussels to be met. The delay forced TAP to return €24.99 million of the state aid.

With the process now closed, the previous cap on expanding the fleet no longer applies, and TAP is operating 103 aircraft, according to the ministry. The ministry called the end of the restructuring “a relevant milestone” for both TAP and the Portuguese state, saying it would allow the company to focus on growth, value creation and future development.

After losses of more than €1 billion in 2020 and 2021, TAP posted positive results over the past four years, although profit in 2025 was just €4.1 million. Its net financial debt fell to €816.9 million from €2.07 billion, according to the figures cited by the ministry.

Originally published at Eco.pt