Lisbon, May 25, 2026 (Lusa) – Portugal's flag carrier, TAP, has covered approximately 47% of its fuel needs for 2026, a figure that remains below the hedging levels of several European peers amid pressure on jet fuel prices.
The ratio indicated by the airline in its first-quarter results presentation stands slightly above the 40% outlined by financial analyst Nuno Esteves in data sent to Lusa in April. However, this level still keeps the company below the hedging coverage identified by several European competitors at that time.
Air France-KLM showed coverage close to 85% for the following 12 months in that analysis, while Ryanair stood at 84%, Lufthansa at around 76%, easyJet at an annual average between 65% and 70%, and IAG, owner of Iberia and British Airways, at 62%.
Risk coverage (hedging) has gained relevance amid geopolitical tensions in the Middle East, with oil and jet fuel prices pressured by the risk of supply route disruptions due to the closure of the Strait of Hormuz.
TAP maintains "a consistent strategy" of fuel hedging based on a "phased implementation", the document released on Monday said. The airline seeks to combine short-term cost predictability with flexibility regarding market conditions.
Options contracts structure a significant part of the hedging portfolio, preventing a complete price lock-in and allowing the company to benefit from potential future drops in jet fuel prices, the airline said.
The carrier's hedging strategy relies on direct coverage of jet fuel rather than indirect instruments linked to crude oil or other refined products. The company considers that this approach "allows for a more precise and effective risk mitigation than normally observed in the industry."
TAP acknowledges that fuel price impacts should pressure the upcoming quarters despite the existing coverage. The airline expects to mitigate part of this effect through revenue and cost measures, including price adjustments, disciplined capacity management, and cost control.
The company said that "booking dynamics remain resilient", supporting higher occupancy levels and improved unit revenues. The strategy for this year will continue to focus on core markets and revenue quality, particularly on connections to South and North America.
TAP underlined in the presentation that it has no direct exposure to conflict zones in the Middle East and maintains active mitigation measures, including flexible fleet planning and deployment.
Airbus NEO aircraft, which offer greater fuel efficiency, now make up 71% of the fleet as the airline continues its planned fleet modernisation, the company said.
Fuel pressures are compounded by "operational challenges in implementing the Entry/Exit [border control] system at European airports," Chief Executive Luís Rodrigues said, quoted in the earnings statement.
TAP reduced its first-quarter losses to €39.9 million, compared to the €108.2 million lost in the same period of 2025, driven mainly by the performance of the South and North American markets.
Operating revenues grew 11% to €914.4 million, sustained by higher ticket revenues and improved unit yields, alongside a 3.9% capacity growth. TAP highlighted the contribution of third-party maintenance, where revenues increased 31.8% to €58.4 million.
The airline carried 3.7 million passengers between January and March, up 6.4% from the same period last year, and operated 27,300 flights (+1.5%). Traffic outpaced capacity growth, improving the load factor to 83.5%.
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