TAP returns to losses at the start of the year and records a loss of 71.9 million | Companies

After closing 2023 with historical performance indicators, which earned it profits of more than 177 million euros last year as a whole, TAP returns to losses at the start of this year. In the first quarter of 2024, the airline reported a negative net result of 71.9 million euros, in a period in which it was affected by rising costs.

The results were announced this Friday in a statement released by the company. In the period under analysis, the document shows, the loss totaled 71.9 million euros, an increase in relation to the losses of 57.4 million that had been recorded in the first quarter of 2023. The losses are reported despite the operating revenues having increased by around 3%, totaling 861.9 million euros, mainly thanks to the growth in revenue obtained through air tickets.

The increase in revenue occurred in a scenario in which the number of passengers transported by TAP remained practically unchanged. Between January and March, the airline transported just over 3.5 million passengers, an increase of 0.6% compared to the same period last year. At the same time, there were 27 thousand matches, a drop of 2% compared to the same period last year. The increase in prices, however, was enough to offset these indicators and increase operating revenues.

Thus, it was mainly due to the cost component that the carrier’s results worsened at the start of this year. Operating costs amounted to 919 million euros in the first quarter, an increase of 7.8% compared to the same period in the past. This movement results, above all, from the almost 57% increase in personnel costs, which TAP justifies with new company agreements, which were not enough to offset the savings achieved with the reduction in fuel prices.

“The increase in personnel costs in the first quarter of 2024, compared to the first quarter of 2023, was impacted by extraordinary costs arising from an agreement reached with pilot representatives and, additionally, by the existence of remuneration reductions in force in 2023, reductions that will be eliminated with the entry into force of new company agreements in the second half of 2023”, details TAP.

At the same time, the company reduced financial debt by around 1.4%, to 1420 million euros, and increased cash liquidity by more than 43%, to 1133 million, reducing net debt by more than 55%, for a total of 287 million euros.

Given these results, and despite the worsening of losses, the company highlights the evolution of operational performance and points to positive prospects during this year. “Expectations for the summer of 2024 remain positive, with reserves in line with 2023, despite the increase in capacity, confirming resilient demand. Also in 2024, investment in fleet modernization will continue, with [introdução] of three new A320 NEO aircraft, confirming TAP’s commitment to a more sustainable and efficient fleet”, can be read in the results release.