Portugal’s TAP manages to stay profitable as it enters final restructuring year

Portuguese carrier TAP’s revenues rose 1% last year, sufficient for it to claim an all-time high figure of E4.2b, although its net profit fell by 70% – a decline it attributes partly to revenue adjustments and labour provisions. The airline’s full-year performance includes the effect of its full consolidation of regional carrier Portugalia since November. It kept the rise in operating costs to 1.5% and achieved an operating profit of E314m, down by 9%. CE Luis Rodrigues says that, despite the profitability dip, the figures demonstrate the “recovery trajectory” of the carrier, as it enters the final year of its restructuring plan. Rodrigues says 2025 will be “challenging” but that the company will “remain focused” on transforming into a “sustainably profitable airline”. TAP’s passenger revenues declined slightly during the year, due to a negative adjustment for non-flown revenues in the fourth quarter. The airline says a number of elements contributed to this adjustment, including a “refocus” of its loyalty programme, re-establishment of ticket terms adjusted during the pandemic, and lower expired ticket revenue. But a strong performance from the maintenance division – particularly for engine-shop activity – offset this decline.<br/>