Tunisair cuts capacity to restore operational balance as traffic falls

Tunisian national carrier Tunisair cut capacity and tightened cost discipline in 2025 as it sought to stabilise operations after years of financial and governance challenges, according to data published by the Tunis Stock Exchange.

Passenger traffic fell 5 percent year on year to 2.49 million passengers, but key operational indicators improved as the airline reduced capacity more sharply than demand and lifted aircraft utilisation.

Available seat-kilometres declined by 8 percent in 2025, reflecting a strategy to better align supply with market conditions through lower frequencies and route adjustments. The faster reduction in capacity helped push the passenger load factor up to 76.1 percent, from 73.1 percent in 2024, indicating fuller aircraft despite fewer passengers overall.

The overall load factor, which includes both passenger and cargo operations, also improved, rising to 66.3 percent from 63.9 percent a year earlier. The increase points to more efficient use of fleet capacity in a sector where fixed costs remain high.

Cargo activity provided additional support. Tunisair transported about 5,500 tonnes of freight and mail in 2025, up 8 percent from the previous year, contributing to improved unit performance and helping offset weaker passenger volumes.

Despite the contraction in traffic and capacity, transport revenue held steady at around 1.6 billion Tunisian dinars (US$554 million). The flat revenue outcome suggests an improvement in yields and unit revenues, as the airline focused on operating fewer but fuller flights and maintaining pricing discipline.

Tunisair has been undergoing a restructuring process aimed at restoring operational and financial balance after several years marked by governance issues, ageing aircraft and recurring losses. The carrier operates in a highly competitive regional market, facing pressure from both European airlines and low-cost carriers serving Tunisia’s key tourism routes.

Analysts say the 2025 results indicate early progress toward stabilisation, though challenges remain. While improved load factors and stable revenue point to better operational efficiency, sustained recovery will depend on continued cost control, fleet renewal and stronger governance.

The airline’s ability to maintain revenue levels with a smaller capacity base underscores the impact of tighter network management, but longer-term performance will also hinge on broader reforms and access to financing in a constrained fiscal environment.

For now, the 2025 figures suggest Tunisair is moving cautiously toward operational balance, prioritising efficiency and capacity discipline as it works to rebuild after years of structural strain.

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