Acquisition targets ITA Airways and TAP Air Portugal flag improved results
European acquisition targets ITA Airways and TAP Air Portugal both flagged improved financial results for 2023, as the Italian carrier reached break-even a year earlier than expected and the Portuguese airline posted record profits. Italy and Portugal have both begun the process of selling off their respective national carriers. Italy’s finance ministry has agreed a deal to sell a 41% stake in ITA to Lufthansa, while Portugal’s government last year set in motion plans for the reprivatisation of TAP. Both processes have hit turbulence, however. European regulators have yet to be convinced that remedies so far proposed by Lufthansa address their competition concerns, while TAP’s privatisation has been delayed by the collapse of Antonio Costa’s government late last year. ITA Airways, which succeeded Alitalia as Italy’s flag carrier in October 2021, recorded a E70m ($76m) EBITDA profit for 2023 and says it reached operating break-even a year earlier than forecast. While the airline remains loss-making, posting a net loss of E5m for 2023, ITA says this performance is also ahead of expectations. ITA made a net loss of E486m in 2022. The carrier’s improved financial performance was based on a sharp pick-up in its passenger business as strong demand continued post-pandemic. ITA passenger revenues climbed around two-thirds to E2.2b as it increased passenger numbers 47% to around 15m. That drove a 53% rise in total revenues to E2.4b. TAP posted a net profit of E177m last year – almost trebling the E65m in made in 2022. That outstripped its previous profit high of 2017 and was achieved despite the airline slipping to a Q4 net loss of E25m. The airline’s recurring EBIT increased from E268m to E347m, marking a profit margin of 9% Full-year revenue climbed just over a fifth to E4.2b in 2023, as passenger levels rose from almost 14m to just under 16m. That remains short of the 17.1m TAP flew in 2019 “2023’s strong results confirm TAP’s recovery path in recent years,” says TAP CE Luis Rodrigues. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-03-28/star/acquisition-targets-ita-airways-and-tap-air-portugal-flag-improved-results
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Acquisition targets ITA Airways and TAP Air Portugal flag improved results
European acquisition targets ITA Airways and TAP Air Portugal both flagged improved financial results for 2023, as the Italian carrier reached break-even a year earlier than expected and the Portuguese airline posted record profits. Italy and Portugal have both begun the process of selling off their respective national carriers. Italy’s finance ministry has agreed a deal to sell a 41% stake in ITA to Lufthansa, while Portugal’s government last year set in motion plans for the reprivatisation of TAP. Both processes have hit turbulence, however. European regulators have yet to be convinced that remedies so far proposed by Lufthansa address their competition concerns, while TAP’s privatisation has been delayed by the collapse of Antonio Costa’s government late last year. ITA Airways, which succeeded Alitalia as Italy’s flag carrier in October 2021, recorded a E70m ($76m) EBITDA profit for 2023 and says it reached operating break-even a year earlier than forecast. While the airline remains loss-making, posting a net loss of E5m for 2023, ITA says this performance is also ahead of expectations. ITA made a net loss of E486m in 2022. The carrier’s improved financial performance was based on a sharp pick-up in its passenger business as strong demand continued post-pandemic. ITA passenger revenues climbed around two-thirds to E2.2b as it increased passenger numbers 47% to around 15m. That drove a 53% rise in total revenues to E2.4b. TAP posted a net profit of E177m last year – almost trebling the E65m in made in 2022. That outstripped its previous profit high of 2017 and was achieved despite the airline slipping to a Q4 net loss of E25m. The airline’s recurring EBIT increased from E268m to E347m, marking a profit margin of 9% Full-year revenue climbed just over a fifth to E4.2b in 2023, as passenger levels rose from almost 14m to just under 16m. That remains short of the 17.1m TAP flew in 2019 “2023’s strong results confirm TAP’s recovery path in recent years,” says TAP CE Luis Rodrigues. <br/>
