TAP returns to profit and posts net income of 65.6 million in 2022

TAP regressa aos lucros e apresenta resultado líquido de 65,6 milhões em 2022

The Portuguese airline (TAP) carried a total of 13.8 million passengers last year, "an increase of 136.1% compared to the previous year and reaching 81% of 2019 levels", reads a statement.

TAP made a net profit of 65.6 million euros last year. The figure, announced this morning, represents an increase of 1,664.7 million euros compared to 2021. The airline has thus returned to positive results, something that hasn't happened since 2017.

In what is considered the first year after the pandemic and without restrictions on transportation, TAP's revenues reached a historic 3,485 million euros, 151% above fiscal year 2021.

The company carried a total of 13.8 million passengers, 136.1% more than in 2021 and reaching 81% of 2019 levels. As for flights operated, they rose by 74.9% last year, reaching 79% of pre-pandemic figures. The company's capacity reached 87% of pre-crisis levels, increasing by 94.2% compared to the previous year.

On the other hand, recurring operating costs also increased by 73.4% to 3,236.2 million euros, "resulting in a positive recurring EBIT of 248.8 million euros, an increase of 726.7 million euros, or 4.7 times the amount in fiscal year 2019," explains the company.

Weighing heavily in the accounts was the cost of fuel, which more than tripled, increasing by 756.2 million euros year-on-year to 1,096.7 million. "Despite leading to a positive effect of EUR 85.5 million, hedging only marginally reduced the effect of the increase in fuel prices, which alone contributed EUR 458.4 million to the increase in fuel costs," says TAP.

Christine Ourmières-Widener, CEO of TAP, said in a statement, quoted by the newspaper Negócios, that given these results, "during the fourth quarter of 2022 TAP was able to generate the highest quarterly revenues in its history and record profitability, despite ongoing operational challenges."

"During the first full year of the restructuring plan, TAP generated an operating profit which is an all-time record for the company. TAP also generated a very strong positive net profit, given its level of leverage," says the manager.

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