Portuguese carrier will soon learn its new owner: either Air France-KLM or Lufthansa Group
TAP Air Portugal’s losses expanded in the first half of 2026, largely due to fuel costs, as the airline nears a final sale.
The flag carrier reported a 4.3% year on year rise in operating revenue to €2.04 billion ($2.4 billion) for the first half of the year, supported by a similar increase in passenger revenue.
TAP says it benefitted from strong demand for flights to South America and Europe. Its unit revenue from North American flights fell 7% year on year, which TAP attributes to added capacity and pressure on economy fares.
But overall losses for the six-month period grew to €99 million ($115 million), up 40% year on year. The airline company reported the financial results on 31 August.
“The substantial increase in fuel prices, namely in jet fuel, materially pressured TAP’s performance in the second quarter,” says chief executive Luis Rodrigues. “Indeed, this impact was felt immediately on costs, while the revenue-side mitigation measures tend to materialise more gradually, as a large share of the revenue for the second quarter had already been booked amid the fuel price spike.”
TAP will soon learn the outcome of its pending sale, as its government-owned holding company Parpublica plans to deliver its recommendation to lawmakers as early as 1 September.
Air France-KLM and Lufthansa Group have both submitted binding offers for a minority stake in the airline and its valuable routes to South America.
SkyTeam member Air France-KLM aims to acquire a 44.9-49.9% stake, while Lufthansa has not disclosed the specifics of its bid. Neither suitor revealed offer prices.
Under a deal – which stands to be among the final privatisation efforts across Europe’s national airlines – 5% of shares being sold would be reserved for employees, with the state retaining 50.1% control.
Oil prices remain elevated as conflict in the Middle East drags on. The US and Iran again exchanged military strikes over the weekend, ending a month of relative calm and sending crude prices back above $90 per barrel.
The post TAP losses expand ahead of planned sale first appeared on FlightGlobal.