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Increased earnings and operational stabilization at TAP Air Portugal

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The Portuguese state-owned airline TAP Air Portugal concluded the first quarter of 2026 with a significant improvement in its financial figures. Despite the usual seasonal challenges at the beginning of the year, operating revenue increased by 11 percent to a total of 914,4 million euros.

Key drivers of this development were a 6,4 percent increase in passenger numbers to 3,7 million and optimized seat load factors, which reached a new high of 83,5 percent for this period. The maintenance services segment for third-party customers, in particular, proved to be a stable source of revenue outside of the core flight operations, with a sales increase of almost 32 percent.

In terms of operations, the airline increased its recurring EBITDA to €95,5 million, representing a significant improvement compared to the previous year. This upward trend is closely linked to its strategic focus on the transatlantic network. Routes to North and South America, in particular, experienced above-average growth, solidifying Lisbon's role as a central link between Europe and the Americas. Furthermore, a consistent reduction in debt contributed to strengthening the balance sheet, lowering the net financial debt to EBITDA ratio to 2,2 times.

Alongside its flight operations, TAP's management, under CEO Luís Rodrigues, is pushing ahead with the group's restructuring. Following the end of the quarter, key agreements for the divestment of non-core businesses were signed. The sale of the catering subsidiary Cateringpor to the Gate Gourmet Group and the stake in ground handling company SPdH to Menzies Aviation Portugal are nearing completion. These divestments are part of the restructuring plan, agreed upon with the European Commission, which aims to focus on the core business. The company's liquidity position as of the end of March was reported at a solid €879,8 million.

For the remainder of the 2026 financial year, management is cautiously optimistic, but warns of continued pressure from high fuel prices and macroeconomic volatility. To counter these factors, the airline is relying on disciplined capacity management and the continuation of its fleet modernization plan. Current booking figures indicate continued strong demand, with price adjustments and strict cost control intended to help maintain a stable operating margin even in a challenging international environment.

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