SNCF: Scorching Summer Costs €80 Million in Lost Revenue


SNCF : l’été caniculaire a coûté cher, avec 80 M€ de manque à gagner - Depositphotos.com Auteur Savvatexture

CroisiEurope


The summer of 2026 put the French railway network to a rigorous test.

In its seasonal assessment, the SNCF group describes a summer that was “ out of the ordinary ”, marked by exceptional temperatures, fires, storms and heatwaves that affected the infrastructure.

In this context, ridership nevertheless remained high.

According to SNCF, nearly 30 million travelers rode the TGVs in France and Europe during the summer. Ridership remained broadly stable compared with summer 2025, though with developments that varied by destination.


The TERs carried 67.3 million travelers

The Alps notably recorded a 4 % rise in ridership, while the Occitan and Mediterranean coastal area grew by 5 %. By contrast, ridership declined by 2.7 % in the Southwest, mainly in Gironde.

The TERs carried 67.3 million travelers, i.e., 3 million more than in the summer of 2025. On the Intercités trains side, around 2 million travelers were carried, up 10 % year over year.


Another trend highlighted by the group: late bookings continue to rise. SNCF reports 4.5 million tickets purchased in the four days leading up to departure, i.e., a 2 % increase compared with 2025.

This high level of attendance was nevertheless accompanied by a deterioration in punctuality. SNCF notes that indicators were affected by heatwaves, fires and storms that hit the network during the summer.


The financial cost of disruptions amounts to 180 million euros since the start of the year

Intercités trains were particularly exposed to the consequences of climatic hazards. The SNCF reports 630 cancellations during the summer, of which 89 % were linked to weather conditions and the heat.

Heat and bad weather heavily strained the rail network, with 374 fire outbreaks recorded between June and August, as well as incidents related to thunderstorms.

Some services were also suspended preventively to avoid travellers being stranded on tracks in high heat.

Despite these disruptions, the group notes that a large portion of affected travelers were able to complete their journey on the planned day thanks to the measures in place. On the Paris-Clermont-Ferrand line, 90 % of customers thus completed their trip, versus 80 % on Bordeaux-Marseille and 85 % on Paris-Limoges-Toulouse. For night trains, 91 % of planned circulations could be ensured, compared with 99 % in 2025.


During the summer, SNCF specifies that 168,000 meal vouchers were distributed, as well as 1.5 million bottles of water.

The group indicates it handled 19,300 hotel rooms and mobilized 6,800 taxis to transport customers to their accommodations.

Furthermore, 1.9 million TGV customers were eligible for compensation for delays of more than 30 minutes.

The SNCF group estimates an 180 million euro loss of turnover since January 2026 due to climatic hazards, with 80 million euros recorded during the sole summer period.


SNCF aims to accelerate its climate-change adaptation plan

Beyond the summer 2026 bilan, the SNCF group presents this season as an accelerator for its climate-change adaptation plan.

In the short term, the group notably plans to better map areas exposed to heatwaves, fires, floods, or ground movements.

Preventive maintenance must also be strengthened on sensitive equipment, while spare parts stocks and supply chains must be secured.

SNCF also plans to bolster traveler information during climate episodes to better anticipate disruptions and facilitate the implementation of alternative solutions.

In the longer term, the group announces an adaptation plan covering four axes: making the network more resilient, adapting trains to extreme temperatures, protecting stations and maintenance centers, and better protecting staff and supporting travelers.

These adaptations will require substantial investments. SNCF Réseau estimates needs of 340 million euros per year to renew the catenaries, with that figure rising to 430 million euros per year from 2028.

The group also foresees 170 million euros by 2035 to adapt stations and heritage sites, 250 million euros for the buildings of the technicenters, and more than 400 million euros envisaged to adapt rolling stock to the effects of heat.

TAP Air Portugal: Revenue Up, Profitability Down


TAP Air Portugal a enregistré une croissance de son activité au premier semestre 2026 - Depositphotos.com @VanderWolf Images

MSC Croisières


In the first half of 2026, TAP Air Portugal generated €2.04 billion of operating revenues, compared with €1.96 billion in the same period in 2025, a rise of 4.3%.

This growth is chiefly driven by passenger activity. Revenues from passenger transport reached €1.83 billion, up 4.4% year over year.

The airline attributes this evolution to a 1.7% increase in capacity and a 2.7% growth in passenger revenue per available seat kilometer (PRASK).

Revenue growth was accompanied by an uptick in traffic. TAP carried 8.2 million passengers from January to June, i.e., 4.2% more than in the first half of 2025.

Traffic, measured in RPK, rose by 5.9%, higher than capacity (+1.7%). As a consequence, the load factor improved by 3.4 percentage points to reach 85.4%. The airline operated 57,500 flights over the period, a slight year-on-year increase of 0.3%.


Rising fuel costs weigh on the accounts

Despite this commercial momentum, TAP struggles to translate growth into profit. Recurring operating costs rose by 9.6%, to €2.12 billion.

The main driver of this rise remains fuel. The aviation fuel bill rose by €89.4 million (+18.7%) over the first six months of the year.

Personnel expenses also advanced by 7.5%, to €519.3 million, while depreciation and amortization increased by 9.8%, notably linked to fleet investments.

This cost inflation translates into a clear deterioration of profitability indicators. The recurring operating result (EBIT) stood at €-83.7 million, versus €+17.3 million a year earlier.

The recurring EBITDA reached €181.9 million, down 29.8% year over year.


A net loss of €99.2 million

In terms of net income, TAP therefore posted a loss of €99.2 million in the first half of 2026, compared with a loss of €70.7 million a year earlier.

The deterioration amounts to €28.5 million year on year. TAP notes that the result was helped, notably, by a positive foreign exchange gain of €34.2 million over the period.

The second quarter particularly illustrates this earnings pressure. With €1.125 billion in revenue, quarterly revenue remained virtually flat (-0.6%), while recurring operating costs rose by 17.9%.

Fuel costs surged by 52.3% in the quarter, i.e., an additional €127.1 million versus Q2 2025. The quarter therefore ended with a net loss of €59.3 million, compared with a profit of €37.5 million a year earlier.


A strengthened cash position

Nevertheless, TAP highlights the strengthening of its financial position. As of 30 June 2026, the company held €1.22 billion in cash, i.e., €456.7 million more than at the end of 2025.

This improvement comes notably after the issue of €350 million in senior notes in the second quarter. According to TAP, this operation boosted liquidity, diversified its funding sources, and lengthened the maturity of its debt.

Net financial debt stood at €787.1 million as of 30 June, down slightly by 2.1% versus 31 December 2025.


TAP continues its development strategy

Operationally, TAP continues the fleet renewal. It had 101 aircraft in service as of 30 June 2026, two more than in the previous quarter.

The airline notes that 72% of its medium- and long-haul fleet is now comprised of aircraft from the NEO family, up from 71% a year earlier. TAP has also relaunched several seasonal routes from Lisbon to Ibiza, Alicante, Palma de Mallorca and Menorca, as well as a seasonal link to San Francisco via Terceira.

For the remainder of the fiscal year, TAP reports solid booking momentum and favorable prospects for unit revenues.

The airline remains cautious regarding fuel price volatility, geopolitical developments, and the macroeconomic context. It plans to continue its revenue-management actions, its fuel-hedging policy, and cost-control measures to limit the impact of these factors.

TAP has also adopted a new strategic plan for the period 2026-2035, focused in particular on expanding long-haul, differentiating its offering, and creating new revenue sources.