Strong Record Profit for TAP Portugal in 2022

Photo Credit: Joris Wendt/AviationSource

TAP Portugal achieved a net profit of 65.6 million EUR in 2022, showing an increase of 1,664.7 million EUR compared to 2021.

TAP Portugal’s Record Profitability

Photo Credit: TAP Portugal

In this week’s press release, the Portugese flag carrier announced its 2022 Full Year and Quarter Four financial results.

The airline achieved a net profit for the full year of 65.6 million EUR. Its EBIT result (earnings before interest and taxes) stood at over 260 million EUR.

The airline also carried 81% of 2019’s passenger figures. 13.8 million passengers were carried in 2022, an increase of over 130% compared to 2021.

Linking with the passenger figures, since 2021, the carrier increased the number of flights by almost 75%, with capacity increasing by over 94%. Both factors are 79% and 87% of pre-pandemic levels respectively.

The year ended for the airline with load factors only 0.1 percentage points below the levels in 2019.

Revenues also increased significantly in 2022. The Lisbon-based airline achieved revenues of 3,485.0 million EUR, an increase of 151% since 2021.

Despite the positive news, the airline was of course affected by the rise in fuel costs. It saw fuel costs increase by over 750 million EUR since 2021. Its fuel hedging reportedly only marginally reduced the effects of the cost rise.

Restructuring TAP

Since the pandemic, TAP has been completing a restructuring program to protect it from market turbulence. The plan applied to both TAP Air Portugal and TAP Express.

The plan, created and started in 2020, involves fleet reduction and renewals, a new management board, and restructuring financial aid. It has focused on removing smaller and older aircraft and adding more fuel-efficient larger aircraft.

Credit: TAP Portugal 2022 Financial Results

Christine Ourmières-Widener, TAP CEO, issued a quote, saying: “For the first full year of the Restructuring Plan, TAP generated an operating profit that is an all-time record for the company.”

The airline intends to use the plan to optimize revenues to manage any uncertainty in the global markets, such as increases in inflation, costs, and geopolitics.

The positive financial result comes despite recent news the CEO and Chairman were both dismissed by the Portuguese government. This was following a scandal involving an irregular severance payment of €500,000 to a former executive board member.

2023 forward bookings for the airline show continuing trends in demand which will provide optimism for the carrier’s coming year.

“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,” Ourmières-Widener added.


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