Portugal’s airline TAP said today its 2025 profit fell 92% due to a one-off fourth-quarter charge which outweighed higher revenue from increased passenger numbers and stronger margins.
TAP said it sees positive booking momentum, while “actively monitoring” developments in the Iran war, adding it will be “nimble” in responding to any operating environment changes.
TAP’s CEO Luis Rodrigues said that despite a challenging environment, with cost inflation and significant industry-wide supply chain and operational constraints, it “maintained resilient margins and strengthened its financial position”.
Rodrigues said TAP will launch two new routes to Brazil, increasing its network there to 15 destinations, while expanding operations at Porto with new routes and a maintenance hub.
The state-owned flag carrier, which is being partially privatised, booked a net profit of just €4.1m, down from €53.7m in 2024. This still marked a fourth year of profit for the airline in a row.
The drop was mainly due to a €42m one-off fourth-quarter charge from a downward revaluation of deferred tax assets – future tax credits it will use – after parliament in November cut the corporate tax rate from 20% to 17% by 2028.
TAP posted a €51m loss in the fourth quarter.
Rodrigues said that despite the one-off charge, TAP delivered “solid results, supported by resilient demand across its network, particularly in the second half of the year”, and by a relevant contribution from the maintenance business.
TAP said “resilient demand and positive booking momentum”should support higher load factors and stronger unit revenues,with fuel price rises partly offset by ticket price increases.
Full-year revenue rose 1.2% to €4.31 billion on a 1.6% increase in passenger numbers to more than 16 million.
Operating costs rose 1.8% to €4.02 billion in 2025, as higher traffic, staff and depreciation expenses were partly offset by lower fuel costs.
Earnings before interest, taxes, depreciation and amortisation rose 4.4% to €725.8m, while EBITDA margin – a measure of profitability – increased to 16.8% from 16.3% in 2024.
