Back to profit – TAP closes H1 with €400,000

After sustaining losses of €72.2 million in Q1 of 2024, Portugal’s national carrier TAP Air Portugal closed the first half of 2024 with a modest profit of €400,000, but still down 98.3% on 2023 when TAP managed a net profit of €22.9 million.

In the first half of the year, “TAP recorded a net profit of €0.4 million, as a result of the positive net profit from the second quarter of €72.2 million, offsetting the negative net result in the first quarter of 2024”, says a statement from the carrier.

TAP’s operating revenues reached €1,969 million, increasing by 3.3% compared to the first half of 2023 and “driven by an increase in capacity (2.9%) and better load factor (0.8 p.p.), and by a relevant increase in activity in maintenance and engineering revenues (36.7%)”, explains TAP.

On the expenditure side, this reached €1,857.6 million, up 3,3%, expenses on personnel increased 35% compared to the first half of 2023, to a total of €380.1 million.

The company also reported a “relevant improvement in the Financial Debt / EBITDA ratio”, which reached “a level of 2.1x, when compared to the ratio of 2.6x on December 31, 2023, reinforcing TAP’s path of deleveraging disciplined and prudent financial management, with the aim of inspiring confidence in investors”.

For the second half of 2024 “reserves remain in line with the previous year, although with some pressure on yields”.

The number of passengers carried in the second quarter increased by 2.4% year-on-year, and the number of flights operated increased by 0.7%. TAP also highlights the increase in the number of passengers and flights operated compared to “pre-crisis” levels, that is, the second quarter of 2029: they increased by 92% and 87%, respectively.

TAP is committed to a greater commitment to the Brazilian market, with the opening of a new route, Florianópolis, and the reopening of another, Manaus, increasing the offer to 13 destinations through 15 routes.

“In the second quarter of 2024, we continued on the necessary path of TAP’s structural transformation. Our investment in people and operations continues to show results: a considerable reduction in irregularities, more flights leaving and arriving on time, and an increase in NPS (A customer satisfaction index), with a consequent growth in revenues”, says Luís Rodrigues, Executive President of TAP, quoted in the statement.