TAP had losses of 71.9 million euros in the first quarter of the year, a figure worse than in the same period last year, but which represents an improvement compared to the pre-pandemic period, the airline reported.
In a statement, TAP explains that, from January to March, net profit registered a negative value of 71.9 ME, having decreased by 14.5 million compared to the first quarter of 2023.
However, the company emphasizes, when compared to the first quarter of 2019 (pre-pandemic year) the net result improved by 34.7 ME.
The carrier recalls that the first quarter “is traditionally the one with the worst financial performance”, to highlight that between January and March this year it managed to improve operational performance, continued growth in revenues and achieved “resilient operational results”.
The airline’s operational performance in the first three months of the year improved, surpassing the first quarter of 2023 in several metrics: it carried more passengers (+0.6%), increased its capacity (+3.8%) and improved the ‘ load factor’ (+0.3 percentage points).
Operating revenues reached 862 million, increasing by 3.1% compared to the first quarter of 2023. The company highlights revenues from the passenger segment, which increased by 5%.
Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) reached 83.7 million and a negative recurring EBIT (excluding depreciation and amortization) of 43.3 million, higher than 2019 levels (5.5 million and -99.3 million, respectively).
Last year, TAP achieved its highest net result ever, with a profit of 177.3 ME, while revenues exceeded 4,000 ME for the first time, the company announced.
The statement states that, as of March 31, 2024, the Group had a liquidity position of 1,133.4 ME, an increase of 344 million compared to the end of 2023, following the execution of the second tranche of capital increase by the shareholder, in January 2024, worth 343 million.
Quoted in the statement, TAP’s executive president, Luís Rodrigues, considered that, in the first quarter of 2024, the company continued the “structural transformation process” that was required.
“Investment in our people, including the end of salary cuts, corrections for high inflation and new company agreements, have an immediate impact on the result, but the benefits will continue to materialize over time”, he added.
The official also highlighted that the company managed to “increase supply, transport more passengers and improve occupancy rates”, when compared to the first quarter of 2023.
All this, he added, translated “into increased revenue, a huge reduction in irregularities, improved punctuality and regularity in a highly congested airport infrastructure”.
In the first quarter, operating revenues totaled 861.9 ME, increasing by 3.1% compared to the same period last year, representing 140% of operating revenues in the first three months of 2019 (pre-pandemic), driven mainly by revenues from the segment of passengers, which rose to 774.7 million euros, 37.2 million more (+5%) compared to the same period last year.
Revenue from the Maintenance division reached 45 ME, an increase of 1.4 million when compared to the first quarter of last year, mainly due to “better conditions in the supply chains that delayed activities scheduled in previous quarters”, says the company .
Revenues from the Cargo segment fell by 12.1 million to 36.7 million, registering a decrease of 24.7% compared to the same period last year.
Recurring operating costs reached 905.2 ME, an increase of 7% (+59.1 million) compared to the first three months of 2023. This variation mainly results from the increase in personnel costs (+70, 5 million or 56.9%) due to new company agreements, “offset by reduced fuel costs (-23.6 million) due to a lower jet fuel price.”
