Lisboñ, Dec. 31, 2025 (Lusa) - TAP will reach the end of 2025, the date set for completing the restructuring plan agreed with Brussels, with most of the measures implemented, but with commitments still to be fulfilled, opening the door to a possible extension of the timetable.
The airline's restructuring was approved by the European Commission in December 2021, allowing for the allocation of state aid to ensure TAP's viability after the impact of the Covid-19 pandemic. The plan was negotiated by the government led by António Costa, in line with European competition rules. It included measures such as downsizing, divestment of non-essential assets, and limitations on the company's expansion.
Under this plan, the Portuguese state injected €3.2 billion through capital increases and financial instruments, becoming a 100% shareholder in the airline.
One of the central components of the plan was reducing the cost structure, including significant job cuts. Between 2021 and 2022, TAP reduced its workforce through redundancies, mutually agreed terminations and early retirement. At the end of 2021, TAP had approximately 6,626 employees, a reduction of 1,480 compared to 2020, when it had around 8,106.
In the following years, the company began a gradual re-hiring process, reinstating 925 of the 1,514 employees laid off during the pandemic, particularly crew members and technicians, to support the recovery of operations.
TAP also applied salary cuts, initially of 25%, later reduced to 20%, with the minimum guarantee updated to €1,520, reflecting both negotiations with trade unions and efficiency gains.
The fleet was also resized, from around 108 aircraft in 2019 to a maximum of 99 aircraft authorised by the European Commission, and the route network was adjusted, with reduced frequencies and a focus on strategic markets such as Europe, North America and Brazil.
TAP's financial performance exceeded the plan's expectations.
The company posted a net profit of €65.6 million in 2022, returning to positive results ahead of schedule, after a loss of €1.6 billion in 2021. The restructuring plan predicted that TAP would achieve a positive operating result only in 2023 and net profit only in 2025, targets that were exceeded ahead of schedule.
At the corporate level, TAP moved forward with several internal operations considered essential for the stabilisation of the group, including the concentration of shareholdings and the preparation of the company for a partial privatisation process that has advanced and regressed over the last few years.
This year, Luís Montenegro's government approved a decree-law authorising the sale of up to 44.9% of the capital, with 5% reserved for employees, which has attracted interest from the three major European groups in the sector: Air France-KLM, IAG (owner of Iberia and British Airways), and Lufthansa.
Despite the progress made, not all the obligations set out in the plan were met within the initial deadline. The European Commission confirmed to Lusa that the deadline for the sale of TAP's 51% stake in CateringPor and 49.9% stake in SPdH, formerly Groundforce, had been extended. These measures were due to be completed by the end of 2025.
Contacted by Lusa, an official source from the EU executive's competition department said that "the deadline for the sale of the two TAP subsidiaries has been extended", without indicating new dates or clarifying whether this decision implies a formal extension of the restructuring plan, as the Portuguese government has done.
In response to Lusa, the Ministry of Infrastructure recalled recent statements by Minister Miguel Pinto Luz on the exclusion of these holdings from the privatisation process, adding only that "the government is in contact with the European Commission on this issue".
In the case of Manutenção e Engenharia no Brasil (M&E Brasil), the company ceased operations in 2022 after unsuccessful attempts to sell it, which involved the dismissal of more than 500 workers.
In the coming months, the European Commission will assess the end of TAP's restructuring plan and compliance with the agreed targets, in coordination with the Portuguese State. If the targets are considered met, TAP will be exempt from certain restrictions, including the 99-aircraft limit and the ban on acquiring other assets.
SCR/ADB // ADB.
Lusa
