Portuguese airline TAP posted record profits of 203.5 million euros in the first nine months of the year and 180.5 million in the third quarter, according to information released yesterday by the airline..

In a press release quoted by Lusa, TAP said that its quarterly net profit was the highest since quarterly records began, improving by 69.2 million euros compared to the third quarter of 2022 and 179.4 million euros compared to the same period in 2019 (before the pandemic).

Operating revenues in the first nine months of the year reached 3.2 billion euros, a "robust increase" of 725 million (+29.7%) compared to the same period in 2022, the company said.

Capacity exceeded pre-crisis levels, reaching 101%, representing an increase of 16.5% compared to the first nine months of 2022.

From January to September this year, TAP recorded a Recurring EBITDA of 752.4 million euros, with a margin of 24%, as well as a Recurring EBIT of 400.7 million euros, with a margin of 13%.

Despite a decrease of 147.3 million euros compared to the end of 2022, "following the industry's usual seasonal pattern of liquidity consumption" in the third quarter, and the repayment of the 2019-2023 bonds for a total amount of 200 million euros at the end of June 2023, the group "maintains a strong liquidity position of 768.8 million," it says.

Even with this reduction - the statement stresses - there was "a significant improvement" in the Net Financial Debt / EBITDA (earnings before interest, taxes, depreciation and amortization) ratio on September 30, 2023, reaching a level of 2.4x, marking "remarkable progress" compared to the 3.5x ratio recorded at the end of 2022.

"The 3rd quarter results are encouraging and validate the organization's focus on executing a good summer for our passengers. We are taking solid steps to improve the robustness of our operations and the quality of the service we provide to our passengers, accelerating the recovery from the last two difficult years," TAP CEO Luis Rodrigues said in the statement, quoted by Lusa.

In the third quarter, the number of passengers carried increased by 5.2% compared to the same period in 2022 and there were 5.7% more flights than in the same period last year.

Compared to pre-pandemic levels (3Q19), the number of passengers reached 90% and flights operated 86%. Operating revenues increased by 12.5% compared to the third quarter of 2022, rising 139.5 million euros to 1,258.5 million, representing 121% of operating revenues for the third quarter of 2019.

Passenger segment revenues rose by 179.4 million euros (+17.9%) compared to the third quarter of last year to 1,181.3 million euros.

The Maintenance division's revenues amounted to 32.9 million euros, a drop of 15.2 million when compared to the third quarter of last year, mainly due to "problems in supply chains that delayed scheduled activities", the company said.

Revenues in the Cargo segment fell by 26.2 million to 38 million euros, a decrease of 40.8% compared to the same period in 2022.

Recurring operating costs amounted to 982.2 million euros, an increase of 1.7% (16.0 million euros more) compared to the third quarter of 2022.

"This variation is mainly the result of the increase in traffic operating costs (an increase of 45.8 million or 20.8%), reflecting higher levels of activity, and the increase in staff costs (64.5 million or 60.5%) due to the continued reinstatement of most of the pay cuts, mostly offset by the reduction in fuel costs" (down 86.4 million euros), says the company.

When compared to the same period in 2019, TAP's recurring operating costs increased by 7.8%, mainly "due to the increase in fuel costs and traffic operating costs," he adds.