TAP recorded a loss of 71.9 million euros in the first quarter

TAP’s losses in the first quarter of the year were 71.9 million euros, worse than the same period last year but an improvement on the pre-pandemic period, the airline said.

In a statement, TAP explained that from January to March, net profit recorded a negative value of 71.9 million ME, a decrease of 14.5 million compared to the first quarter of 2023.

However, the company emphasizes that compared to the first quarter of 2019 (pre-pandemic year), the net result improved by 34.7 million.

The carrier recalls that the first quarter is “traditionally the year with the worst financial performance,” emphasizing that in the period from January to March this year it was able to improve operating performance, continue to grow revenues and achieve “robust operating results.”

The airline’s operating performance improved in the first three months of the year, surpassing the first quarter of 2023 in several areas: it carried more passengers (+0.6%), increased capacity (+3.8%) and improved “load factor” (+3 ,8%). +0.3 percentage points).

Operating revenue reached 862 million, an increase of 3.1% compared to the first quarter of 2023. The company highlights revenue from the passenger segment, which grew by 5%.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) reached 83.7 million, and negative recurring EBIT (excluding depreciation and amortization) reached 43.3 million, higher than 2019 levels (5.5 million and -99 .3 million respectively).

Last year, TAP achieved its highest ever net result, with profit of ME177.3 million and revenue exceeding ME4,000 million for the first time, the company said.

The statement indicated that as at 31 March 2024, the Group’s liquidity position was ME 1,133.4 million, an increase of ME 344 million from the end of 2023, following the shareholder’s execution of the second tranche of the capital increase in January. 2024, worth 343 million.

As noted in the statement, TAP Executive President Luis Rodriguez believes that the company continued the necessary “structural transformation process” in the first quarter of 2024.

“Investing in our people, including ending pay cuts, adjustments for high inflation and new company agreements, has an immediate impact on the bottom line, but the benefits will continue to materialize over time,” he added.

The official also emphasized that the company managed to “increase supply, carry more passengers and increase occupancy” compared to the first quarter of 2023.

All this, he added, led to “increased revenues, a significant reduction in violations, increased punctuality and regularity of work in the heavily overloaded airport infrastructure.”

In the first quarter, operating revenue was 861.9 ME, an increase of 3.1% year-over-year, representing 140% of operating revenue in the first three months of 2019 (pre-pandemic), driven primarily by segment revenues passengers, which rose to 774.7 million euros, up 37.2 million (+5%) compared to the same period last year.

The maintenance division’s revenue reached 45 ME, up 1.4 million from last year’s first quarter, largely due to “better supply chain conditions that delayed planned activities in previous quarters,” the company said.

Revenue in the Freight segment fell by 12.1 million to 36.7 million, recording a decline of 24.7% compared to the same period last year.

Regular operating expenses reached 905.2 million ME, an increase of 7% (+59.1 million) compared to the first three months of 2023. This change is mainly due to an increase in personnel costs (+70.5 million or 56.9%) due to the new company. agreements, “offset by lower fuel costs (-23.6 million) due to lower jet fuel prices.”