The Portuguese airline remains less protected against fuel price swings than its main European peers, ECO News reports.

According to data from Platts, TAP had hedged 50 percent of its fuel needs, up from 40 percent at the start of the year, while still below the levels of major European airlines.

Financial analyst Nuno Esteves told ECO that this lower protection leaves the airline more exposed if prices stay high or rise further, increasing pressure on fuel costs and operating profitability.

Geopolitical conflicts

The impact was already noticeable in the second quarter of the year, when TAP’s fuel bill rose 52.4 percent to €370.2 million, equal to 48 percent of total costs, helping drive an operating loss of €47.6 million between April and June.

TAP said in its half-year results that the changes in jet fuel prices after June 30, 2026, could have a significant effect on the group’s results, especially if linked to geopolitical conflicts such as the war in the Middle East.

The airline said its hedging strategy reduced fuel spending by €106.3 million in the first six months of 2026, excluding the cost of taking out that protection, ECO News reports.

TAP also said it has been assessing and implementing fare adjustments, where the market and demand conditions allow, for tickets issued from March 2026 to pass on the expected increase in fuel costs.