DALLAS – Lisbon-based TAP Air Portugal (TP) has announced its Q1 2023 results, halving its losses to €57.4m (US$63.19m). The airline said these numbers were thanks to passenger numbers rising 67% year-on-year to 3.51 million, up from Q1 2019 numbers.
From this, TAP’s passenger revenue rose to €737.6m (US$804.8m), up 79% from Q1 2022. Total operating revenues stood at €835.9m (US$911.9m), an increase of 70.4% year-on-year.
However, these revenue numbers were impacted by higher labor and fuel costs which saw the airline’s total operating costs increase by 54% to €852.2m (US$929m). Its fuel bill alone doubled to €277m (US$302m), while labor expenses rose by 53% to €123.8m (US$135m).
Despite announcing a net profit of €65.6m (US$71.5m) for the 2022 financial year, TAP has had a troubled few years. Amid a comprehensive restructuring, its CEO Christine Ourmieres-Widener and Chairman Manuel Bej were recently fired after being embroiled in a severance payment scandal. Its crew members have also threatened several strikes over pay and working conditions.
The airline is currently on the lookout for a buyer. The Lufthansa Group, Air France-KLM and International Airlines Group (IAG) are all in the running to purchase the carrier from the Portuguese government. These improved results will make the airline a more attractive prospect for any potential suitor.
Featured Image: TAP Air Portugal Airbus A319 (CS-TTR) @ MAD. Photo: Adrian Nowakowski/Airways.