DALLAS – TAP Air Portugal (TP) released its Q3 financial results today, noting that it had recorded a record profit of €180.5 million (US$191.13 million).
This result led the airline to achieve a record profit of €203.5 million (US$215.48 million) for the first nine months of 2023. Operating revenues in the first nine months of the year also surged to €3.2 billion (US$3.39 billion), demonstrating a significant increase of 29.7% over the same period in 2022.
During the first nine months of this year, TP delivered a recurring EBITDA of €752.4 million (US$797.22 million), with a margin of 24%, as well as a recurring EBIT of €400.7 million (US$424.68 million), with a margin of 13%. At the end of June, the airline reimbursed its 2019–2023 bonds, totaling €200 million (US$211.97 million).
TAP's CEO, Luís Rodrigues, expressed satisfaction with the Q3 results, which validate the company's focus on providing a great summer experience for passengers. According to Rodrigues, TP is making progress in strengthening operations and improving the quality of passenger service, which is helping to accelerate the recovery from two challenging years.
The significant increase in revenues, he says, along with resilient operating margins and a robust deleveraging plan, demonstrates the financial strength of the company despite the difficult circumstances. The CEO added that the airline was counting on the commitment and dedication of its employees to establish itself as a leader in the industry.
Review of Q3 2023
In Q3, the number of passengers carried increased by 5.2% compared to the same period in 2022, while operating 5.7% more flights. The number of passengers carried reached 90% of Q3 2019 pre-pandemic levels, while the number of flights operated reached 86% of pre-pandemic levels.
Capacity measured in Available Seat Kilometers (ASK) increased by 9.0% compared to 3Q22, reaching 95% of pre-crisis levels. The load factor stood at 84.8%.
Operating revenues increased by 12.5% over 3Q22, increasing by €139.5 million (US$147.81 million) to €1,258.5 million (US$1,334.63 million), surpassing and representing 121% of 3Q19 operating revenues. Higher yields along with increased capacity drove this trend.
Net income amounted to €180.5 million (US$191.13 million), the highest quarterly net income since quarterly records were published, showing an improvement of €69.2 million (US$73.32 million) compared to 3Q22 and €179.4 million (US$190.09 million) in comparison to 3Q19.
Operationally, there were no changes in the network during the third quarter. In terms of the operating fleet, it comprised 98 aircraft as of September 30, 2023, where 68% of the medium- and long-haul operating fleet consisted of NEO Family aircraft (compared to 66% on September 30, 2022, and 33% on September 30, 2019).
The full version of the Third Quarter and Nine Months of 2023 Results Earnings Release is available here.
Featured image: TAP Air Portugal Airbus A320neo (CS-TVG). Photo: Alberto Cucini/Airways
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