TAP Air Portugal achieved its highest net income ever in 2023, making a record profit of EUR 177.3 million, up EUR 111.7 million from the previous year’s EUR 65.6 million.
With an increase of EUR 730 million (+20.9%) from 2022 to EUR 4.2 billion in 2023, Operating Revenues exceeded EUR 4 billion for the first time in the Group’s history. TAP’s strategic approach to market opportunities is reflected and confirmed by this record figure and sustained growth.
TAP Air recorded strong performance in financial and commercial measures in 2023, achieving a solid Recurring EBITDA of EUR 871.6 million with a margin of 21% and a Recurring EBIT of EUR 385.8 million with a margin of 9%.
As of December 31, 2023, TAP had an improved Net Financial Debt / EBITDA ratio and a strong liquidity position of EUR 789.4 million, reinforcing the path of deleveraging.
The plan to turn TAP into a structurally sustainable airline will continue to be in place in 2024. It calls for constant operational improvement, investments in staff and customers, a sharper focus on important markets and a tailored approach for each, capitalisation of profitable outcomes, cost pressure management, enhanced cash flow generation, and a continuation of the deleveraging path.
“2023 strong results confirm TAP’s recovery path in recent years. Record revenues, surpassing the EUR 4bn mark, robust and resilient operating margins, and a clear deleveraging trend, confirm the financial strength of the Group. An increase in punctuality and regularity in the second half of the year, as well as in the NPS, underscores the organizational focus on delivering a better service to our passengers. Signing the new collective labour agreements confirms the recognition and commitment towards our people. 2024 will be a challenging year that will test the organizational focus, for which we will need the commitment of all our teams to establish TAP as one of the most attractive companies in the sector.”
Luís Rodrigues, Chief Executive Officer at TAP Air.
TAP carried 15.9 million passengers in 2023, up 15.2% from 2022 to 2023, accounting for 93% of the total number of passengers in 2019. The overall number of flights operated grew by 11.0% in 2023 as well, reaching 88% of pre-crisis levels.
With an increase of 101%, capacity exceeded pre-crisis levels in 2019 and increased by 14.9% from 2022. In 2023, the Load Factor improved by 0.7% from 2019 and climbed by 0.8% year over year to 80.8%.
Operating revenues increased by 20.9% from 2022 to EUR 4,214.8 million in 2023, and by 27.8% from 2019 to that amount. With increases of 9.1% (+EUR 0.61 cents) from 2022 to 2023 and 31.5% (+EUR 1.75 cents) from 2019 to 2023, the 2023 PRASK was EUR 7.30 cents.
At EUR 3,829.0 million, recurring operational costs increased by 18.3% from 2022. In comparison to 2022, the CASK of recurring operational costs grew by 3.0% to EUR 7.25 cents. With fuel excluded, the growth was 10.4% over 2022 and the unit value reached EUR 5.14 cents, 9.9% more than in 2019.
Recurring EBITDA increased by EUR 113.4 million, or 15.0%, from 2022 to EUR 871.6 million in 2023, with a margin of 20.7%. With a margin of 9.2%, recurring EBIT in 2023 was EUR 385.8 million, EUR 137.1 million more than in 2022.
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