Source: TAP

  • Revenues exceed 4 billion euros for the first time in a year.
  • Recurring EBIDTA of 871.6 million euros, with a margin of 21 per cent.
  • Robust liquidity position of 789.4 million euros in cash.

In 2023, TAP recorded its peak net income ever, generating a record profit of EUR 177.3 million, an increase of EUR 111.7 million over the previous year, when a result of EUR 65.6 million had been recorded.

Operating Revenues in 2023 reached the highest value ever in the Group’s history, surpassing the EUR 4 billion mark, reaching a value of EUR 4.2 billion, increasing by EUR 730 million (+20.9 per cent) compared to 2022. This record figure and consistent growth reflect and confirm TAP’s strategic approach to market opportunities.

In 2023, TAP recorded a solid performance in financial and commercial metrics, with a Recurring EBITDA of EUR 871.6 million, with a margin of 21 per cent, as well as a solid Recurring EBIT of EUR 385.8 million, with a margin of 9 per cent.

TAP ended 2023 with a robust liquidity position of EUR 789.4 million, reinforcing the deleveraging path with an improved Net Financial Debt / EBITDA ratio as of 31 December 2023.

In 2024, the strategy to transform TAP into a structurally sustainable airline will continue to be implemented, continuously improving operations, investing in Employees and Customers, strengthening the focus on key markets and the strategy for them, capitalizing on good financial results, managing cost pressures, improving cash flow generation and continuing the deleveraging path.

Luís Rodrigues, TAP’s Chief Executive Officer, considers that “2023 strong results confirm TAP’s recovery path in recent years. Record revenues, surpassing the EUR 4bn mark, robust and resilient operating margins, and a clear deleveraging trend, confirm the financial strength of the Group. An increase in punctuality and regularity in the second half of the year, as well as in the NPS, underscores the organizational focus on delivering a better service to our passengers. Signing the new collective labor agreements confirms the recognition and commitment towards our people. 2024 will be a challenging year that will test the organizational focus, for which we will need the commitment of all our teams to establish TAP as one of the most attractive companies in the sector.”

Review of the full year 2023

In 2023, TAP carried 15.9 million passengers, representing an increase of 15.2 per cent compared to 2022, reaching 93 per cent of the figures achieved in 2019. Also in 2023, the total number of flights operated also increased by 11.0%, reaching 88% of pre-crisis levels.

Capacity surpassed 2019’s pre-crisis levels, reaching 101%, representing an increase of 14.9% compared to 2022. The Load Factor increased by 0.8 p.p. year-on-year, reaching 80.8 per cent in 2023, also improving by 0.7 p.p. compared to 2019.

Operating revenues in 2023 totaled EUR 4,214.8 million, which represented an increase of 20.9% compared to 2022 and an increase of 27.8% compared to 2019. The 2023 PRASK was EUR 7.30 cents, having increased by 9.1 per cent (+EUR 0.61 cents) compared to 2022 and 31.5 per cent (+EUR 1.75 cents) compared to 2019.

Recurring operating costs amounted to EUR 3,829.0 million, increasing by 18.3% compared to 2022. The CASK of recurring operating costs increased by 3.0 per cent to EUR 7.25 cents compared to 2022. Excluding fuel, the increase was 10.4 per cent compared to 2022, reaching a unit value of EUR 5.14 cents, 9.9 per cent higher than in 2019.

In 2023, Recurring EBITDA reached EUR 871.6 million, with a margin of 20.7%, increasing by EUR 113.4 million or 15.0% compared to 2022. Recurring EBIT amounted EUR 385.8 million in 2023, with a margin of 9.2%, which is EUR 137.1m higher than in 2022.

You can access the full 2023 earnings release here.