TAP Air Portugal SWOT: Brazil the key strength as privatisation approaches
In 2025 TAP Air Portugal reported its fourth consecutive year of profit. It also completed a restructuring programme that was a condition imposed by the European Commission for approval of COVID-era state aid in 2021.
As a result it is now free to expand beyond the 100 aircraft cap imposed at that time.
However, its operating margin fell from 9.0% in 2024 to 5.6% in 2025 - its lowest margin in the four-year period, and the current high fuel price environment is likely to weigh on margins in 2026.
The key strength of TAP, Portugal's leading airline, is its leadership in the market between Europe and Brazil. This is the greatest attraction to potential investors/partners in the privatisation process that has drawn expressions of interest from Air France-KLM and Lufthansa Group.
This report considers TAP's strengths, weaknesses, opportunities and threats.
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