In response to a formal request from the PS (Socialist Party), reviewed by the Lusa news agency, the Azorean executive (PSD/CDS-PP/PPM) reported that the company’s ground handling unit recorded estimated losses of €3.45 million in 2021, €2.18 million in 2022, €4.25 million in 2023, €4.59 million in 2024, and €6.25 million in 2025.

The Regional Government emphasised that these results represent a “historical accounting snapshot of the activity” and do not account for additional revenues, “potential efficiency gains,” or “adjustments to revenue allocation” between SATA Air Açores and the ground handling unit.

Revenues from the operation

According to the estimates, revenues from the operation stood at €8.35 million in 2021, €11.51 million in 2022, €13.15 million in 2023, €14.75 million in 2024, and €16.18 million in 2025.

The Regional Government noted that until April, the ground handling operation was an internal unit of SATA Air Açores, and a “market value” was assumed for calculating revenues.

Regarding the potential establishment of Public Service Obligations (PSOs) for ground handling, the Azorean executive detailed that an internal analysis conducted by SATA in late 2024 “pointed to losses in the order of six million euros.” The Azorean government also indicated that a financial execution report for the Public Service Obligations (PSOs) regarding ground handling operations projected a profit for the first three years of activity (approximately €2 million, €1 million, and €1.304 million, respectively) and a loss in the fourth year (€2.2 million).

“A business plan for the ‘handling’ activity is also in the final stages of preparation. This document is based on a forward-looking view of the business and already incorporates more detailed information regarding planned optimisations,” the response states.

Air transport service concession

The Azores executive branch highlighted that the base price of €250 million for the air transport service concession in the region (2027–2031) “took into account historical demand data from recent years and public measures adopted to promote internal mobility for residents, specifically, the implementation of the ‘Tarifa Açores’ [Azores Fare].”

The tender specifications for the privatisation of SATA Handling require a minimum of five years of sector experience, seven-year financial projections, and a “continuous and efficient operational response,” the Lusa news agency reported on 28 July.

€55 million guarantee

On the same day, the Government of the Azores approved a €55 million guarantee for SATA and the tender specifications for the full privatisation of the ‘handling’ unit, as part of the group’s restructuring plan.

On 28 January, it was revealed that SATA planned to formalise the separation of the ‘handling’ unit in March, create a new company, and initiate the privatisation process for that service.

On 6 July, the PS/Azores party submitted a formal request to the Azorean parliament seeking clarifications from the Regional Government regarding “rising public costs” associated with the inter-island air transport concession and the announced financial compensation for SATA’s ‘handling’ operations.