TAP profits €22.9M in H1
Portuguese airline TAP posted a net profit of €22.9 million in the first half of this year, representing an improvement of 111% or €224 million in relation to the months of January to June 2023 when the company suffered losses of €202.1 million.
“This good result is tied to a strong growth in operational revenues that topped €1.9Bn with an increase of €600 million (+44.3%) on the same period in 2022. This growth reveals the balanced approach adopted by TAP of capitalising on market opportunities”, states the company in its financial report.
TAP’s recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 57% to €361.7Bn and its EBITDA margin — a measure of profitability — rose to 19% from 17.4% a year ago.
Chief Executive Officer Luis Rodrigues said the results showed the company’s sustained trend of commercial and financial improvement and that “the operating margins and deleveraging path, above the targets of the restructuring plan, prove the group’s financial sustainability”.
The airline, which is undergoing a restructuring under a Brussels-approved €3.2Bn rescue plan, has previously said it carried 7.58 million passengers between January and June, a 30% increase from a year ago but below pre-pandemic levels. The airline will begin its privatisation process from next month but the government intends to retain a golden share in the company for strategic reasons.