Flag carrier TAP’s profit sinks 70% to 54 million euros in 2024

TAP Air Portugal announced on Wednesday that it made a profit of 53.7 million euros in 2024, a drop of 69.7% compared to the previous year, when it made a profit of 177.3 million euros Extraordinary labour provisions and foreign exchange losses impacted this profit.

In a statement, the airline emphasised the positive result achieved for the third consecutive year and pointed out that, compared to 2019, the last year before the pandemic, results grew by 149.4 million euros.

TAP’s CEO, Luís Rodrigues, said in the same statement that these results “were achieved in a very challenging year, marked by a significant increase in competition in the airline”s main markets, strong currency devaluations, operational challenges, namely in air traffic control and adverse weather events, and structural constraints, such as the aircraft limit”.

In the last quarter of last year, the net result was a loss of 64.5 million euros, a decrease of 38.3 million or 145.8% compared to the same three months of 2023, when the result was -26.2 million euros..

In 2024, operating revenues totalled a new all-time high of 4.24 billion euros, an increase of 0.7% compared to 2023 and 28.6% above 2019 levels.

TAP carried 16.1 million passengers last year, an increase of 1.6% compared to 2023, but operated 1.5% fewer flights, with both indicators below 2019 levels.

The airline highlighted the “strong performance of the maintenance segment”, with an increase of 44.6%, particularly in the engine workshop activity, which also contributed to the increase in revenue.

Recurring operating costs increased by 0.8% year-on-year, reaching 3.86 billion euros in 2024.

Recurring EBITDA (earnings before interest, taxes, depreciation and amortisation) reached 875.3 million euros in 2024, with a margin of 20.6%, increasing by 3.7 million euros or 0.4% compared to 2023.

In addition, recurring earnings before interest and taxes (EBIT) totalled 382.7 million euros, with a margin of 9%, representing a decrease of 3.2 million or 0.8%. The airline pointed out that this “reflected a level of consolidated profitability in line with 2023, successfully accommodating the new Company Agreements and the increase in staff costs. ”

As of 31 December, TAP had a solid liquidity position of 651.6 million euros, excluding the third capital tranche of €343 million, executed by the State on 17 January 2025.

TAP’s CEO also referred to the “significant increase” in the customer satisfaction index, compared to 2024, which recognises “the continuous increase in punctuality and regularity”.

The airline’s leader warned that 2025 will be equally “challenging” and the last year of the restructuring plan.