TAP said that "net profit recorded a material improvement when compared to the first quarter of 2021, with the net loss decreasing 66.7% to -€121.6 million."
Portugal’s flag carrier TAP reduced its losses in the first quarter of this year to €121.6 million, compared to a negative €365.1 million in the same period last year, the airline said in a statement on Friday.
In the note, published at the Portuguese Securities Market Commission (CMVM), TAP said that “net profit recorded a material improvement when compared to the first quarter of 2021, with the net loss decreasing 66.7% to -€121.6 million, despite the negative net impact of exchange rate differences of €14.7 million, as a result of the depreciation of the EUR [euro] against the USD [dollar], with a strong impact on future rents and therefore ‘non-cash’ in this period, partially offset by the appreciation of ‘receivables’ from Brazil, due to the appreciation of the BRL [real] against the EUR”.
According to TAP, in the quarter, “the main operating indicators were moderately below the levels of the previous quarter, which is explained by the seasonality of the aviation industry – the first quarter is typically the weakest quarter”.
Still, “activity showed significant improvements when compared to the first quarter of 2021 and demonstrated that the company is consistently and progressively resuming pre-pandemic 2019 operating levels.”
In this context, “the number of passengers carried increased by more than 5 times in Q1 2022 compared to the same period in 2021, progressively reaching 62% of Q1 2019 levels and reflecting the continued recovery in demand. Additionally, during this period, TAP operated 3 times more flights than in Q1 2021, equivalent to 68% of Q1 2019”.