TAP profits €65.6 million in 2022

Portugal’s national carrier TAP has posted a profit of €65.6 million and revenues of €3.5Bn for 2022; a record result five years after the airline was taken back into state control.

TAP’s operational result leapt by €268.2 million to €3.484Bn, up 151% on 2021. Revenues across almost all segments: 187.9% in flights, 143.6% in maintenance, and 9.4% in cargo and mail grew — figures that will certainly help the Government attract a buyer from among the several interested international airline groups. (Iberia-British Airways (International Airlines Group), KLM-Air France, and Lufthansa)
The last time the company had positive results was in 2017 when it closed the year with a profit of €100.4 million. However, the holding TAP SPGS ended up with just €21.2 million that year because of losses in other subsidiaries such as Maintenance and Engineering Brazil.
Operational costs rose by 11.8% to €3.316.8Bn. (+200% down to an increase in expenses on fuel and traffic operational expenses) Staff costs rose 11.6% with 779 new staff being hired. Nevertheless, operational costs per seat/kilometre (CASK) fell 10.7% like-for-like fell by 7.04 cents.
“During Q4 (4th quarter of) 2022 TAP was able to generate the highest quarterly revenues in its history and record profitability, despite continued operational challenges. During the first full year of the Restructuring Plan, TAP generated an operating profit that is an all-time record for the company. TAP also generated a very strong positive net profit, taking into account its level of leverage” stated outgoing TAP CEO Christine Ourmières-Widener.
With the 2022 results, TAP has drawn a line under a long period of losses which had reached €1.6Bn by last year because of the impact of the pandemic. Losses led to an EC sanctioned government cash bailout of €3.2Bn in exchange for a restructuring plan which involved around 1,400 redundancies and salary cuts.
The outgoing CEO of TAP is believed to be preparing a lawsuit against the Government for unfair dismissal in which she is suing for compensation worth €3 million (covering the bonus written into her contract, and earnings lost due to her contract being terminated).

Photo: Lusa