In the first half of 2024, the Airline carried a total of 7.7 million passengers, representing an increase of 1.6% compared to the same period of the previous year. In the same time, positive net income in the second quarter of 2024 allows the Airline to close the first six months of the year with a profit of EUR 0.4 million.
In the first half of 2024 (1H24), TAP Air Portugal’s Operating Revenues reached EUR 1,969 million, increasing by 3.3% compared to the first half of 2023, driven, in the passenger revenues, by an increase in capacity (+2.9%) and improved load factor (+0.8 p.p.), and by a significant increase in activity in Maintenance and Engineering revenues (+36.7%).
TAP recorded, In the first half of 2024, an increase in recurring operating results compared to 2023, reaching a recurring EBITDA of EUR 372.7 million (+EUR 11.0 million), with a margin of 19%, and a recurring EBIT of EUR 139.2 million (+EUR 14.7 million), with a margin of seven percent.
In the second quarter of 2024 (2Q24), compared to the second quarter of 2023 (2Q23), the number of passengers transported increased by 2.4%, and the number of flights operated increased by 0.7%. Compared to pre-crisis levels in 2019 (“2Q19”), the number of passengers reached 92% and the number of flights operated reached 87%.
Operating revenues totaled EUR 1,106.7 million, increasing by 3.4% compared to 2023, surpassing and representing 133% of 2019 operating revenues. Ticket revenues increased by EUR 8.3 million (+0.8%) compared to 2023, totaling EUR 986.4 million, generating a PRASK of EUR 7.39 cents – a decrease of 1.2% (-EUR 0.09 cents) when compared to 2023 and an increase of 30.2% (+EUR 1.71 cents) compared to 2019.
Maintenance revenues increased by EUR 29.9 million (+71.4%) compared to 2023, totaling EUR 71.8 million, mainly due to the increase in engine shop activity. Cargo and Mail revenues decreased by EUR 4.3 million to EUR 39.3 million, down 9.9% compared to 2023, due to the continued normalization of cargo yields observed in the market.
Net income amounted to EUR 72.2 million, a decrease of EUR 8.1 million compared to 2Q23, impacted by foreign exchange losses following the depreciation of the Brazilian Real, offsetting operating gains. However, when compared to 2Q19, it improved by EUR 77.6 million.
As of 30 June 2024, the balance sheet showed a robust cash and cash equivalents position of EUR 1,175.7 million, an increase of EUR 386.3 million compared to 31 December 2023.
The net financial debt/EBITDA ratio improved significantly to 2.1x compared to year-end 2023 (2.6x).
From an operational perspective, five destinations from Lisbon were reopened during the second quarter for the summer season: Ibiza, Alicante, Palma de Mallorca, Menorca and Agadir, and a new route was opened for the summer season from Lisbon to Caracas, with return via Funchal.
Luís Rodrigues, CEO of TAP, believes that “in the second quarter of 2024, we continued the necessary path of structural transformation of TAP. The investment in people and operations continues to confirm the focus and show results: a significant reduction in disruptions, the continuous increase in punctuality and regularity, and the increase in NPS (the customer satisfaction index), with consequent growth in revenues. Special mention goes to the Maintenance and Engineering area, which is beginning to realize its potential.”
“The strong performance in the second quarter,” Luís Rodrigues continued, “allows for a positive net result in the semester, which, despite being reduced, is achieved for the second consecutive time, but now without salary cuts.”
“We continue on the path we set out to follow, with the commitment of our people and the support of our stakeholders: to establish TAP as a sustainably profitable company and one of the most attractive in the industry,” concluded TAP’s CEO.
