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TAP Air Portugal announces an annual profit exceeding €65 million.

Photo by Fabian Joy

The airline's total revenue was more than 150% higher than the previous year, which was instrumental in its recovery from the pandemic.

In comparison to the preceding year, TAP Air Portugal ended 2022 with a noteworthy surge in profits, which was aided by an augmented number of passengers who traveled with the Portuguese flag carrier last year. The airline’s total revenue was more than 150% higher than the previous year, which was instrumental in its recovery from the pandemic. According to a TAP executive, the airline’s performance in 2022 was one of its most exceptional in history.

TAP concluded 2022 with a net profit of €65.6 million ($700,653,168), representing a rise of €1,664.7 million ($1,794,296) from the previous year’s full-year results. Additionally, the airline reported a positive earnings before interest and taxes (EBIT) of €268.2 million ($288,891,630), which included non-recurring items totaling €19.4 million ($20,907,768).

Christine Ourmières-Widener, the CEO of TAP, discussed the airline’s performance, stating that in the first year of the Restructuring Plan, TAP achieved an all-time operating profit record. Despite its leverage, TAP was able to produce a remarkably strong positive net income.

The airline’s performance in 2022 was almost on par with what was forecasted for 2025, indicating that TAP had indeed delivered. These favorable outcomes were attainable due to the dedication and hard work of all employees, business partners, and stakeholders, according to the CEO.

The airline transported a total of 13.8 million passengers throughout its network last year, which marks a significant improvement of 136.1% compared to 2021. Furthermore, the increase equates to 81% of the levels recorded in 2019. The carrier reported that its revenues at the end of last year amounted to €3,485 million ($3,753,763), which represents a 151% rise over the full year 2021, along with a heightened level of activity (measured by ASK) that increased by 94.2%.

Remaining optimistic, Ourmières-Widener mentioned that TAP is still grappling with challenges.

She stated, “Although TAP still faces challenges, the level of forward bookings for 2023 indicates that there has been no change in demand. The focus in 2023 will be on optimizing revenues in an uncertain environment while simultaneously reducing costs against a backdrop of inflation.”

TAP saw a substantial rise in the number of flights it operated last year, thanks to its increased activity level, which surged by almost 75%, reaching 79% of pre-pandemic frequencies. Capacity reached 87% of pre-crisis levels, representing a 94.2% increase from the previous year, with load factors improving by 17% year-on-year to 80%. The airline reported that the load factor was just 0.1 percentage points below 2019 figures.

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