The airline’s activity also increased to nearly 80% of pre-pandemic activity.
TAP Air Portugal finished 2022 with a significant increase in profits in comparison to the previous year. The numbers also come as an increased number of passengers flew with the Portuguese flag carrier last year.
The airline’s overall revenue was over 150% above the previous year, contributing to its post-pandemic comeback. A TAP executive said the airline’s performance was among its best in history.
“An all-time record”
TAP closed 2022 with a net profit of €65.6 million, which was an increase of €1,664.7 million compared to the full year 2021. The airline said its earnings before interest and taxes (EBIT), including non-recurring items of €19.4 million, was also positive at €268.2 million.
TAP CEO Christine Ourmières-Widener spoke about the airline’s performance.
“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 certainly delivered in 2022, producing a performance close to that forecasted for 2025. These positive results were made possible by the hard work and dedication of all employees, business partners and stakeholders.”
Photo: Markus Mainka/Shutterstock
Last year, the airline flew a total of 13.8 million passengers across its network. The statistic represents an improvement of 136.1% versus 2021. In addition, the growth reached 81% of the levels recorded in 2019. The carrier said its revenues reached €3,485 million at the end of last year, which was 151% above the full year 2021, along with a higher level of activity (ASK increased 94.2%).
Ourmières-Widener also shared that the carrier continues to face challenges but remains optimistic.
“The level of forward bookings for 2023 indicates that there has been no change in demand, but TAP still faces challenges,” the executive said. “2023 is about optimising revenues in an uncertain environment, further reducing costs against a backdrop of inflation.”
Photo: TAP Air Portugal
With its higher activity level, the number of flights TAP operated last year increased significantly by nearly 75%, reaching 79% of pre-pandemic frequencies. Capacity reached 87% of pre-crisis levels, rising 94.2% compared to the previous year, with load factors improving by 17% year-on-year to 80%, just 0.1 percentage points below 2019, according to the airline.
Inside the numbers
TAP’s passenger revenue per available seat kilometer (PRASK) in 2022 was €6.68, representing an improvement of 48.2% compared to the previous year and 20.5% compared to 2019. Recurring operating costs amounted to €3236.2 million, a nearly 74% increase that resulted in an EBIT of €248.8 million. The improved EBIT numbers represent an increase of €726.7 million or 4.7 times the amount in fiscal 2019.
The carrier also experienced fuel costs more than tripling last year, increasing by €756.2 million year-on-year to €1,096.7 million. Despite leading to a positive effect of €85.5 million, hedging only marginally reduced the impact of the increase in fuel prices, which alone contributed €458.4 million to the increase in fuel costs, according to the airline.
TAP’s fleet age is approximately ten years, but it will continue to reduce as the airline receives deliveries of A320neo and A321neo aircraft.