SATA GROUP REPORTS OPERATING AND FINANCIAL RESULTS

• Azores Airlines strengthens its operating performance, with revenue growth despite reduced operations. EBITDA improved by EUR 5.3 million and the net result by EUR 10.8 million compared with 2025. Excluding the exceptional impact of higher fuel costs alone, Azores Airlines would have reported EBITDA of EUR 44.5 million, EUR 19.3 million above 2025, and a net loss of EUR 8.6 million, representing an improvement of EUR 24.7 million.
• SATA Air Açores increases EBITDA to EUR 9.1 million in a period affected by higher fuel prices and costs arising from operational disruptions. The net result improved by EUR 0.2 million compared with 2025.
• SATA Gestão de Aeródromos maintains positive results, with EBITDA of EUR 775 thousand and net profit of EUR 842 thousand.
• SATA Handling moves closer to operating break-even in the first nine months following the separation of its operations into a standalone company.

During the first nine months of 2026, the SATA Group maintained their focus on operational and financial discipline, capacity optimization and revenue management. This took place against a backdrop that remained particularly challenging for the aviation industry, marked by a sharp increase in fuel prices and substantial costs arising from operational disruptions.

The performance recorded in the third quarter nevertheless strengthened the operating results of both airlines. At Azores Airlines, the planned capacity reduction was accompanied by positive developments in unit revenue and yield, which enabled passenger revenue to increase despite lower production. At SATA Air Açores, stable scheduled-service revenue and higher compensation associated with Public Service Obligations helped preserve operating performance.

The continued focus on measures to optimize operations and enhance financial sustainability helped mitigate the adverse impact of the international environment on air transport activities, despite the challenging conditions faced by the aviation industry.

Higher fuel prices represented the main source of pressure on the results of both SATA Group airlines. Based on 2025 conditions, the estimated economic impact up to September amounted to approximately EUR 17 million, of which around EUR 14 million related to Azores Airlines and EUR 3 million to SATA Air Açores. This estimate considers both the reduction in operations and the incremental revenue generated by the commercial measures adopted, including the adjustment to Azores Airlines’ fuel surcharge.

SATA Gestão de Aeródromos maintained positive operating results and net profit, while SATA Handling recorded a significant recovery during the third quarter and moved close to cumulative operating break-even.

Tiago Santos, Chairman of the Board of Directors of the SATA Group, said:

“The results for the first nine months demonstrate the ability of the SATA Group companies and their teams to respond to a particularly challenging external environment while maintaining their focus on operational optimization and financial discipline. Higher fuel prices continued to place considerable pressure on the airlines, but the third-quarter performance confirms the impact of the measures adopted. Azores Airlines strengthened its commercial efficiency and reversed the negative EBITDA reported at the end of the first half, while SATA Air Açores increased EBITDA and maintained the stability of its scheduled operations. These indicators reinforce the importance of continuing to implement the Group’s sustainability measures.”

Azores Airlines: greater commercial efficiency and strong recovery in the third quarter

During the first nine months of 2026, Azores Airlines continued to implement the measures set out in its Financial Sustainability Plan, with particular emphasis on optimizing its operating plan, aligning capacity with demand and prioritizing the economic efficiency of its operations.

Up to September, the airline operated 8,430 flights, 8.2% fewer than in the same period of the previous year, when it operated 9,185 flights. It carried 1.2 million passengers, compared with 1.3 million during the same period of 2025, a decrease of 7.6%. This was in line with the planned 7.6% reduction in available capacity under the Company’s Financial Sustainability Plan, which provided for an adjustment to operations and the optimization of its capacity offering.

Operating revenue reached EUR 264.4 million, an increase of 5.7% compared with the EUR 250.1 million recorded in the same period of the previous year, despite the lower level of production. In the third quarter, operating revenue increased by 13.7%, from EUR 114.4 million in the corresponding period of 2025 to EUR 130.0 million in 2026. This performance partly reflected the increase in the fuel surcharge, one of the measures announced by the airline to offset part of the pressure caused by higher fuel prices.

Operating costs increased by 4.0% to EUR 233.9 million, compared with EUR 224.9 million in the first nine months of 2025. In the third quarter alone, operating costs increased by 2.7%, from EUR 89.4 million to EUR 91.9 million.

Fuel costs, which accounted for approximately 30% of Azores Airlines’ operating costs up to September 2026, increased by 31.7%, or EUR 16.9 million, to EUR 70.2 million, despite the reduction in operations. In the third quarter alone, fuel costs increased by 36.6%.

After considering lower production and the additional revenue generated by the adjustment to the fuel surcharge, higher fuel prices are estimated to have reduced the airline’s EBITDA by approximately EUR 14 million. The results also include approximately EUR 4.0 million in compensation associated with territorial Public Service Obligations, whose operation commenced in May 2026.

Azores Airlines’ performance also continued to be affected by operational disruptions, mainly as a result of the particularly adverse weather conditions experienced during the second quarter of 2026, whose effects extended into the subsequent period. Compensation and passenger reaccommodation costs reached EUR 11.5 million up to September, compared with EUR 4.5 million in the same period of the previous year. Together with fuel, these costs represented one of the principal sources of pressure on the airline’s cost base.

Conversely, Azores Airlines continued to benefit from the efficiency measures implemented under its Financial Sustainability Plan. ACMI costs decreased by approximately EUR 6.1 million, or 48%, compared with the same period of the previous year, reflecting greater use of the airline’s own fleet. Catering costs fell by approximately EUR 2.5 million, or 33%, while commercial costs decreased by around 7%.

Against this background, EBITDA for the first nine months increased by 21% to EUR 30.5 million, compared with EUR 25.2 million in the same period of the previous year. The third-quarter performance was particularly significant, with EBITDA reaching EUR 38.1 million, compared with EUR 24.9 million in the third quarter of 2025. This enabled the airline to reverse the negative EBITDA of EUR 7.6 million reported at the end of June 2026.

The net result also improved by 32%, or approximately EUR 10.8 million, with the net loss narrowing to EUR 22.5 million from EUR 33.3 million in the same period of the previous year. In the third quarter, the airline recorded a net profit of EUR 14.6 million, which represented a significant recovery from its cumulative first-half performance. Among other factors, the improvement benefited from lower finance costs and a less adverse foreign exchange impact than in 2025.

SATA Air Açores: stronger positive EBITDA and stable scheduled operations

Regional air transport activity remained broadly stable during the first nine months of 2026. SATA Air Açores operated 15,272 flights, compared with 15,682 in the same period of the previous year, a decrease of 2.6%, and carried approximately 840 thousand passengers, compared with 854 thousand between January and September 2025, a decrease of 2.2%.

The load factor increased slightly from 81% in 2025 to 82% in 2026, which reflected more efficient fleet utilization.

When compared with 2025, SATA Air Açores’ results up to September 2026 continued to be affected by the separation of the handling activity into a standalone company. For this reason, changes in revenue, staff costs and external supplies and services should not be assessed in isolation.

Operating revenue amounted to EUR 97.9 million, including EUR 54.7 million in operating grants. These grants include compensation associated with Public Service Obligations and the corresponding financial rebalancing mechanism, which is essential to protect SATA Air Açores’ financial capacity in the current international environment.

As at Azores Airlines, fuel represented the main source of cost pressure during the period. Fuel costs increased by 43.4% to EUR 9.6 million, an absolute increase of approximately EUR 2.9 million. In the third quarter, fuel costs increased by more than 52%, or EUR 1.6 million.

Operational disruption costs also continued to place pressure on the results, rising from EUR 2.4 million to EUR 6.1 million. This represented an increase of close to EUR 3.8 million compared with 2025, due mainly to the multiple adverse weather events that affected the archipelago during 2026, particularly in the second quarter.

By contrast, aircraft maintenance costs decreased by approximately EUR 5.2 million, which reflected the investments made in fleet maintenance, particularly engine maintenance.

Despite these pressures, EBITDA increased from EUR 6.0 million to EUR 9.1 million, an improvement of approximately EUR 3.1 million compared with the same period of 2025.

The net result remained negative, with a net loss of EUR 2.8 million, compared with EUR 3.0 million in the same period of the previous year. Performance below EBITDA continued to be affected by higher depreciation charges associated with investment in the fleet and by increased finance costs. Higher finance income and favorable foreign exchange effects partially offset these factors.

SATA Gestão de Aeródromos maintains positive operating performance

SATA Gestão de Aeródromos maintained positive results during the first nine months of 2026.

Operating revenue increased from EUR 5.0 million to EUR 5.9 million, while EBITDA rose to approximately EUR 776 thousand, compared with EUR 495 thousand in the same period of the previous year. This represented an improvement of approximately 57%.

Net profit remained positive at approximately EUR 842 thousand, close to EUR 886 thousand recorded in the same period of the previous year. The year-on-year change mainly reflected lower finance income.

SATA Handling moves closer to operating break-even

During the first nine months since its establishment as a standalone company, SATA Handling recorded EUR 27.6 million in revenue from sales and services.

Performance during the year reflected the seasonal nature of the business. After reporting negative EBITDA of EUR 1.8 million in the first half, the company ended September with cumulative EBITDA broadly at break-even, at approximately negative EUR 20 thousand. This represented a significant operating recovery during the third quarter.

After depreciation charges of approximately EUR 670 thousand and finance costs, the company reported a net loss of EUR 740 thousand.

This performance demonstrates the progress achieved since the handling activity became operationally independent. Following a first half marked by the implementation of the new company’s operating, financial and organizational processes, SATA Handling recorded a substantial recovery in the third quarter. The seasonal increase in activity and the gradual consolidation of its operating model supported this improvement.

Outlook

During the final quarter of 2026, the SATA Group will maintain its focus on consolidating the operational efficiency and financial sustainability measures already under way, against a backdrop that remains marked by volatility in energy markets.

At the airlines, priorities will continue to include disciplined capacity allocation, revenue and yield management, control of non-fuel costs, improved operational stability and the efficient use of their own fleets.

The favorable performance recorded in the third quarter, particularly at Azores Airlines, demonstrates the capacity to improve results in a context of lower production and fuel costs that remain significantly above those recorded in the same period of the previous year.

At the same time, the Group will continue to consolidate SATA Handling as a standalone company, with a focus on operational stability, cost-base adjustments and sustainable improvements in profitability.

The Group will also continue to implement initiatives designed to strengthen the efficiency and economic sustainability of its companies, while ensuring the fulfilment of its public-service mission and safeguarding connectivity to, from and within the Azores.