TAP reports ‘healthy demand’ and ‘higher revenue’ despite losses

TAP Air Portugal reported a “strong operational and financial recovery” in results for the three months to the end of June with the airline’s revenues reaching 99% of 2019’s level.

Christine Ourmières-Widener, TAP chief executive, reported “very healthy demand” and “higher revenue per passenger” but warned prospects for the end of this year and next “remain uncertain”.

TAP reported an operating profit of €66 million for the April-to-June quarter, an improvement on the same quarter in 2019, but a net loss of €80 million in the period with the decline of the euro against the dollar contributing a €58 million loss on currency.

Fuel costs in the second quarter increased by €217.5 million to €277 million or close to five times on the same period last year.

The carrier revealed a net loss of €202 million for the first half of the year, an improvement of €291 million on 2021.

Ourmières-Widener reported TAP’s available liquidity increased to €890 million.

She said: “The second quarter saw very healthy demand and higher revenue per passenger, which allowed us to offset the increase in costs.”

However, she noted: “Prospects for the fourth quarter and next year remain uncertain. The execution of the restructuring plan remains key.”

The number of passengers carried in the second quarter reached 82% of 2019 levels, with the number of flights at 81%.

Operating revenue in the quarter rose to almost €831 million, 99% of the 2019 figure, “driven by increased fares and higher capacity”.

Revenues reached €1,321 million in the half year to June, but operating costs rose 73% to €1,317 million.

TAP relaunched services to Boa Vista in Cape Verde to the Venezuelan capital Caracas during the quarter, marking the resumption of operations to all the international airports it served pre-pandemic and return of all long-haul destinations.