TAP Air Portugal has reported a 2022 net profit of €65.6 million on a year-over-year increase in revenue of 151 percent to €3.49 billion. The carrier’s full year EBIT, including non-recurring items of €19.4 million, totaled €268.2 million.
On Tuesday (March 21, 2023), TAP Air Portugal reported their fourth quarter and full year financial results for the period ending December 31, 2022. The carrier reported a fourth quarter net profit of €156 million on a year-over-three increase in revenue of 29 percent to €1.05 billion. For the full year, TAP reported a net profit of €65.6 million on a year-over-year increase in revenue of 151 percent and a 6.0 percent increase versus 2019 to €3.49 billion. The airline’s fourth quarter revenue per available seat kilometer (RASK) increased year-over-year by 43 percent to 8.70 euro cents, while recurring cost per available seat kilometer (CASK) increased year-over-year by 23 percent to 7.91 euro cents. Excluding fuel (CASK-ex), recurring costs increased versus 2021 by 8.0 percent to 5.28 euro cents. For the full year, TAP’s RASK increased year-over-year by 29 percent to 7.58 euro cents, while recurring CASK decreased 11 percent compared to 2021 to 7.04 euro cents. The company’s 2022 CASK-ex decreased year-over-year by 28 percent to 4.66 cents.
In Tuesday’s announcement, TAP Air Portugal’s CEO, Christine Ourmières-Widener, said,
“During the fourth quarter of 2022 TAP was able to generate its highest quarterly revenues in its history and record profitability and this despite continuous operational challenges. For the first full year of the Restructuring Plan, TAP generated an operating profit that is an all-time record for the company. TAP also delivered a very strong positive net income despite its level of leverage. TAP delivered in 2022, the first year of the Restructuring Plan, a performance close to that forecasted for 2025. This amazing performance was possible by the hard work and dedication of all employees, business partners and stakeholders. The level of forward bookings for 2023 indicates that there has been no change in demand trends but TAP still faces challenges. 2023 is about optimizing revenues in an uncertain environment, further reducing costs against a backdrop of inflation.”
During 2022, TAP achieved a number of milestones as part of their transformation plan, which includes five pillars, namely Customer, Revenue, Cost, People and Enablers. In the customer category, the company improved their call center, opened 31 new lounges, and reduced their pandemic-related refund backlog by 82 percent. Revenue per available seat kilometer (RASK) improved 21 percent versus 2019, the commercial team was reorganized, the carrier’s network was optimized and pre-tax ancillary revenues increased year-over-three by 28 percent. In terms of cost, TAP saved €150 million by renegotiating approximately 2,900 contracts with suppliers, and reduced fuel costs by around €9.0 million through fuel efficiency measures. The company is also on track to save €1.5 million annually through aircraft weight reduction. In 2022, TAP also invested €1.0 million in employee training, hired 779 new team members, ended part-time employment, increases minimum guarantees and implemented retention measures.
Source: TAP Air Portugal
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