Published by Global Banking & Finance Review®
Posted on April 9, 2026
3 min readLast updated: April 9, 2026
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TAP’s 2025 net profit plunged 92% to €4.1 million due to a €42 million one‑off deferred‑tax‑asset revaluation, despite solid revenue growth, resilient margins and strong booking momentum.
By Sergio Goncalves
LISBON, April 9 (Reuters) - Portugal's airline TAP said on Thursday 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 4.1 million euros ($4.78 million), down from 53.7 million euros in 2024. This still marked a fourth straight year of profit for the airline.
The drop was mainly due to a 42 million euros 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 51 million euros 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 euros on a 1.6% increase in passenger numbers to more than 16 million.
Operating costs rose 1.8% to 4.02 billion euros 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 725.8 million euros, while EBITDA margin - a measure of profitability - increased to 16.8% from 16.3% in 2024.
($1 = 0.8579 euros)
(Reporting by Sergio Goncalves; Editing by Alexander Smith)
TAP's 2025 profit dropped 92% mainly due to a €42 million one-off tax charge after a corporate tax rate cut.
Revenue rose 1.2% to €4.31 billion, and passenger numbers increased by 1.6% to over 16 million.
TAP is launching new routes to Brazil, expanding at Porto, and adjusting ticket prices to offset fuel costs.
Yes, TAP reports resilient demand and positive booking momentum, with expectations for higher load factors.
The one-off charge led to a €51 million loss in the fourth quarter of 2025.
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