TAP Air Portugal. Photo: Shutterstock TAP Air Portugal opened 2026 with significant improvements in its financial and operational results, including a sharp reduction in losses, increased revenue, and higher aircraft occupancy.
According to the financial statements for the first quarter of this year, the company's revenue amounted to €914.4 million, an increase of 11% compared to the same period last year. At the same time, the net loss decreased by 63% and amounted to €39.9 million, compared to a loss of €108.2 million in the first quarter of 2025.
At the same time, the company benefited from strong demand for its flights during the quarter, carrying 3.7 million passengers, up 6.4% from the corresponding period. Air traffic grew faster than capacity, leading to an increase in the load factor to 83.5%, up from 78.8% in the corresponding period. Routes to South America and North America continued to lead the growth, with load factors of approximately 89% and approximately 85%, respectively.
TAP notes that the strategy continues to focus on expanding its core operations in the North and South Atlantic, with capacity to North America increasing by approximately 9% and South America by approximately 6%. In addition, revenue per available seat (PRASK) increased by 6.2%, indicating strong demand and the ability to maintain stable price levels.
At the operational level, the company recorded adjusted EBITDA of €95.5 million, compared to only €2.9 million in the corresponding quarter last year. The operating loss also narrowed significantly, with adjusted EBIT standing at minus €36.1 million compared to minus €119.2 million in the first quarter of 2025.
Alongside the improved results, the company warns that high fuel prices are expected to continue to weigh on operations in the coming quarters. TAP noted that the company has hedged approximately 47% of its fuel consumption for 2026, which should help mitigate some of the impact of rising fuel prices.
The company also notes in its reports that maintenance expenses jumped by 44.5% due to higher prices for external maintenance services and ongoing problems in aircraft manufacturers' supply chains. Salary expenses increased by 8.8% due to workforce growth and new wage agreements. On the other hand, fuel expenses decreased by 16.1% in the first quarter, mainly due to hedging profits.
The company's active fleet consisted of 99 aircraft at the end of the quarter, with 71% of the medium and long-haul Airbus fleet already consisting of the more fuel-efficient NEO aircraft. During March, the company took delivery of another A320neo aircraft as part of its fleet renewal program.
As of the end of March 2026, TAP's cash position stood at €879.8 million, with the debt-to-EBITDA ratio improving to 2.2 from 2.6 at the end of 2025. The company noted that it enjoys stable order momentum heading into the rest of the year, alongside the continuation of its fleet renewal program and improvements in customer experience.
"This performance reflects a clear focus on delivering our strategy, with the South and North American markets continuing to play a key role in driving the increase in operations and revenues, translating into a meaningful improvement in operating results," chief executive Luis Rodrigues said in a statement.
But TAP expects higher fuel costs in the coming months due to the Middle East war, “and we remain focused on mitigating this through disciplined capacity allocation, rigorous cost management and active revenue management," he added.