TAP Air Portugal reported a net profit of €72.2 million In the second quarter of 2024. It has contributed to a profit of €0.4 million for the first half of the year. The airline experienced an uptick in passengers, serving 7.7 million in the initial six months, and a 3.3% increase in operating revenues, reaching a total of €1,969 million.
TAP Financial Performance
In the first six months of 2024, TAP Air Portugal experienced a positive financial performance. Effectively, the operating revenues reached EUR 1,969 million. It has increased by 3.3% compared to the same period in 2023. This growth was due to increased passenger revenues, with a larger number of available seats, and a higher occupancy rate. Additionally, the significant increase in maintenance and engineering services contributed to the overall revenue growth.
Despite some pressure in the first quarter, TAP managed to achieve a net profit for the first half of 2024 due to a strong performance in the second quarter. Moreover, the company’s liquidity position strengthened significantly, with a cash balance of EUR 1,175.7 million at the end of June. This improvement, combined with a reduced financial debt-to-EBITDA ratio, demonstrates TAP’s commitment to financial discipline and deleveraging.
Luís Rodrigues, CEO of TAP, explained the process of the company for the second quarter of 2024 :
Throughout the second quarter of 2024, we remained committed to the essential process of restructuring TAP. Our ongoing investment in both personnel and operations serves to underscore our commitment and is yielding tangible results: a notable decrease in disruptions, a steady improvement in on-time performance and regularity, as well as an uptick in NPS (the customer satisfaction index), leading to increased revenues. A special acknowledgment is due to the Maintenance and Engineering department, which is just beginning to tap into its full potential.
Nevertheless, there is some pressure on ticket prices. To address this, TAP is expanding its presence in the Brazilian market by launching a new route to Florianopolis and reopening the Manaus route, bringing the total number of destinations in Brazil to 13 through 15 routes.
Analysis of The Second Quarter
TAP Air Portugal continued to demonstrate a strong recovery in the second quarter of 2024. For instance, passenger and flight numbers increased significantly compared to the previous year, reaching 92% and 87% of 2019 levels. Capacity also exceeded pre-crisis levels, with a load factor of 82.7%.
Despite increased personnel costs, operating costs decreased due to reduced traffic-related expenses and impairment reversals. As a result, recurring EBITDA and EBIT increased substantially by 2.1x compared to year-end 2023 (2.6x).
However, TAP’s financial position remained strong, with a robust cash balance and a significant improvement in the net financial debt-to-EBITDA ratio. The company also expanded its operational fleet and network, reopening several seasonal routes and launching a new service to Caracas.
About TAP Air Portugal
TAP Air Portugal is Portugal’s leading airline, offering extensive connectivity to destinations worldwide. As a member of Star Alliance, TAP provides seamless travel experiences to passengers. With its hub in Lisbon, a strategic location in Europe, TAP serves a diverse network of destinations, including six airports in Portugal, 10 in North America, 12 in Central and South America, 13 in Africa and the Middle East, and 39 in Europe.
CTAP operates one of the youngest fleets in the world, consisting of Airbus’ next-generation NEO aircraft. This fleet offers superior efficiency and reduced emissions. TAP also maintains a regional fleet of Embraer aircraft. Renowned for its safety and quality, TAP has been recognized with multiple awards, including Europe’s Leading Airline to Africa and South America.
TAP’s strategic focus on modernizing its fleet and delivering exceptional customer service has contributed to its success. The full financial report includes increased revenues, improved profitability, a strengthened financial position, increased passenger and flight numbers, and all factors leading to the 72.2 million Euro profit.
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Our family of 7 flew TAP Air Portugal on July 16 from Dulles to Lisbon and returned July 27 Lisbon to Dulles. We paid extra for an upgrade from Economy to Economy Plus, however we were seated in Economy. Upon our return I requested a refund for the cost of the upgraded seats, but my request was denied. We did not receive what we paid for and therefore are entitled to a refund!