Summer brings TAP’s profits to €55.2 million by September, but profitability shrinks
Net income come in 34% below that achieved in 2024. An increase in passengers during the summer and strong growth in the maintenance business helped the financial results in the third quarter.
Summer was once again auspicious for TAP’s results, which achieved a profit of €125.9 million in the third quarter, 15% more than in the same period last year. This performance allowed it to convert losses of €70 million in the first half of the year into a profit of €55.2 million by September, still €30 million below 2024.
Net income between July and September benefited from lower interest expenses, positive exchange rate differences of €8.5 million — contrasting with the negative impact of €17.5 million in 2024 — and a slight reduction in taxes paid.
The Portuguese carrier closed the first nine months of the year with revenues of €3.281 billion, virtually identical to those for the same period in 2024. The third quarter, the company’s strongest, ended with year-on-year growth of 2.7%.
Recurring operating profit was €227.2 million in the first nine months, down 32.7% on the same period last year, with the profit margin falling from 10.3% to 6.9%. Looking only at the third quarter, operating profit was €122.9 million, up 0.9% compared to July-September 2024. The margin reached a robust 15%.
The airline states that in 2025, it “operated one of its busiest summers, with increased capacity (+4%), more passengers carried (+4%) and more flights operated (+1%) compared to the summer of 2024”.
“TAP delivered a solid performance in the third quarter, with an increase in revenues, driven by a significant contribution from Maintenance, solid operating results and a positive net result that fully offset the losses of the first half, thus continuing the performance of the second quarter”, said CEO Luís Rodrigues, quoted in a statement.
Despite the busy summer, the manager notes that “it was also one of the most challenging, marked by persistent competitive pressures and operational disruptions, from strikes, mainly in handling, and constraints on border control at national airports, to restrictions in European airspace and adverse weather events, which continue to affect operations, requiring strong coordination and resilience from teams to mitigate impacts”.
Maintenance services shine
A closer look at revenue growth reveals the strong performance of the maintenance segment, where operating income grew 64% year-on-year to €79.6 million in the third quarter. By September, it had reached €183.6 million, a year-on-year increase of 11.3%.
In the passenger segment, revenue growth between July and September was only 0.5%, to €1,187.5 million. Despite the increase in passenger numbers (+4.2%) and load factor (+1.7 percentage points, to 87.5%), the figures were impacted by the reduction in average ticket prices on routes to North America, Brazil and Europe. Africa was the exception, with a 6% increase in revenue per seat-kilometre. For the first nine months as a whole, operating revenue was €3,281 million, virtually unchanged (0.5%) from 2024.
Operating costs remain high, growing 4.8% in the third quarter to €1,116.2 million, driven by increased traffic operating costs, “due to greater use of ACMI to mitigate supply chain issues that affected fleet availability, and inflationary pressure on costs in the sector”, explains TAP. Personnel costs increased by 5.1% year-on-year, while fuel costs fell by 7.8% compared to the same period last year. Between January and September, operating costs increased by 1.3% compared to the first nine months of 2024.
Recurring operating cash flow (EBITDA) was €332.8 million in the third quarter, €15.3 million less than in the same period last year, with a margin of 25.1%. In the first nine months, it amounted to €592 million, 11% less than in the same period last year.
The third quarter was also marked by a €156 million reduction in net debt to €595.4 million. The ratio of net debt to EBITDA for the last 12 months is 2.5 times. Cash and cash equivalents now total €1,025.6 million.
Positive outlook for the fourth quarter
In the statement, the airline also notes that reservations for the fourth quarter “remain robust, slightly above the previous year, in a context of increased capacity and a clear trend towards shorter booking windows”. It also anticipates that competitive pressure will continue, continuing to affect the evolution of unit revenues.
“Despite delays in aircraft deliveries and throughout the supply chain, the fleet modernisation strategy continues to move forward, with the delivery of an Airbus NEO aircraft expected by the end of the year, contributing to a more efficient and sustainable operation”, it adds. At the end of September, TAP operated 99 aircraft, the limit imposed by the restructuring plan.
Noting that the privatisation process is expected to “continue for several quarters”, the airline’s CEO says that the strategic focus remains on “transforming TAP into a sustainably profitable and attractive company, consolidating operational efficiency and financial sustainability”.
