Portugal’s TAP profit plunges 92% amid one-off charge despite strong bookings

Thursday 09 April 2026 - 10:00

Portugal’s flagship airline, TAP Air Portugal, reported a 92% drop in its 2025 net profit due to a one-off fourth-quarter accounting charge, despite higher revenues from increased passenger numbers and improved operating margins. The airline’s net profit fell to €4.1 million ($4.78 million) from €53.7 million in 2024, marking its fourth consecutive year of profitability.

CEO Luis Rodrigues emphasized that the airline maintained resilient margins and strengthened its financial position despite ongoing cost pressures, supply chain challenges, and operational constraints affecting the aviation sector.

TAP also reported strong booking momentum, while keeping a close watch on geopolitical developments, including the ongoing conflict in Iran, noting that it remains ready to adapt quickly to changes in the operating environment.

The airline announced plans to expand its network to Brazil, adding two new routes to bring its total destinations in the country to 15. It is also increasing operations at Porto airport with new routes and a maintenance hub.

The sharp profit decline was primarily attributed to a €42 million one-off charge resulting from a downward revaluation of deferred tax assets after Portugal’s parliament reduced the corporate tax rate from 20% to 17% by 2028.