TAP states that the quarterly net profit was the highest since records began, improving by 69.2 million euros (M€) compared to the third quarter of 2022 and 179.4 M€ compared to the same period of 2019 (period before the pandemic).

Operating revenues during the first nine months of the year reached 3.2 billion euros, a “robust increase” of 725 million (+29.7 percent) compared to the same period in 2022, indicates the company.

Capacity surpassed pre-crisis levels, reaching 101 percent, representing an increase of 16.5 percent compared to the first nine months of 2022.

From January to September this year, TAP recorded a Recurrent EBITDA of €752.4 M, with a margin of 24 percent, as well as a Recurrent EBIT of €400.7 M, with a margin of 13 percent.

Despite a decrease of €147.3 M when compared to the end of 2022, “following the usual seasonal pattern of industry liquidity consumption” in the third quarter and the reimbursement of 2019-2023 obligations totalling €200 M in end of June 2023, the group “maintains a strong liquidity position of 768.8 million”, he says.

Even with this reduction - the statement highlights - there was “a significant improvement” in the Net Financial Debt / EBITDA ratio (earnings, before interest, taxes, amortization and depreciation) on September 30, 2023, reaching a level of 2. 4x, marking “remarkable progress” compared to the 3.5x ratio recorded at the end of 2022.

“The 3rd quarter results are encouraging and validate the organization’s focus on executing a good summer for our passengers. We are taking solid steps to improve the robustness of our operations and the quality of the service we provide to our passengers, accelerating the recovery from the last two difficult years”, highlights TAP's executive president, Luis Rodrigues, quoted in the statement.

Passenger numbers

In the third quarter, the number of passengers transported increased by 5.2 percent compared to the same period in 2022 and there were 5.7 percent more flights than in the same period last year.

Compared to pre-pandemic levels (3Q19), the number of passengers reached 90 percent and flights operated 86 percent. Operating revenues increased by 12.5 percent compared to the third quarter of 2022, rising €139.5 million to €1,258.5 million, representing 121 percent of operating revenues in the third quarter of 2019.

Regarding revenues from the passenger segment, these registered an increase of €179.4 M (+17.9 percent) compared to the third quarter of last year to €1,181.3 M.

Revenue from the Maintenance division reached €32.9 million, a drop of €15.2 million when compared to the third quarter of last year, mainly due to “problems in the supply chains that delayed scheduled activities”, says the company.

Revenues from the Cargo segment fell by 26.2 million to 38 M€, a decrease of 40.8 percent compared to the same period in 2022.

Recurring operating costs reached €982.2 M, an increase of 1.7 percent (plus €16.0 M) compared to the third quarter of 2022.

“This variation results mainly from the increase in traffic operational costs (an increase of 45.8 million or 20.8 percent), reflecting higher levels of activity, and the increase in personnel costs (from 64.5 million or 60, 5 percent) due to the continuation of the restoration of the majority of cuts in remuneration, mostly offset by the reduction in fuel costs” (€86.4 million less), says the company.

When compared to the same period in 2019, TAP's recurring operating costs increased by 7.8 percent, mainly “due to the increase in fuel costs and traffic operating costs”, he adds.