TAP Air Portugal has returned to pre-COVID level operations, reporting a second quarter (Q2) profit based on strong summer demand, its transformation process and realization of its MRO business potential.
The Lisbon-based Star Alliance member said on Aug. 29 its Q2 net income was €72.2 million ($80.1 million), a decrease of €8.1 million compared to Q2 2023. The results were hurt by foreign exchange losses that offset operating gains following the depreciation of the Brazilian real.
However, TAP said, as the leading airline between Europe and Brazil, it will further invest with 13 destinations in Brazil through 15 routes. It plans to open a new route in the second half of the year from Lisbon to Florianopolis and benefit from the reopening of its Manaus route. During the first six months, TAP reached a 83% load factor on its routes to Brazil, 1.1 points down from the year-ago period.
“In the second quarter of 2024, we continued the necessary path of structural transformation of TAP,” said CEO Luís Rodrigues, adding that the airline’s investment in people and operations continues to confirm its focus and show results thanks to “a significant reduction in disruptions and the continuous increase in punctuality and regularity.”
TAP said it was able to restore pre-crisis capacity through an aircraft up-gauge despite operating a smaller fleet, and network improvements.
TAP’s operational fleet as of June 30 comprised 99 aircraft, with 68% of its medium- and long-haul fleet fuel-efficient Airbus A320/A330neo-family aircraft. TAP Express operates 19 Embraer 190/195s. Delivery of one additional A320neo is expected in the third quarter. TAP has a further 12 A320neos and 10 A321neo/neoLRs on order.
During Q2, TAP transported 4.2. million passengers, up 2% year-over-year. The number of flights increased by 0.7%, and capacity increased 2.1% compared to Q2 2023, surpassing pre-crisis levels. Load factor was up 1.4 points to 82.7%. Operating revenues increased 3.4% to €1.1 billion due to operating cost reductions.
“Special mention goes to the maintenance and engineering area, which is beginning to realize its potential,” the CEO said. Maintenance revenues increased 71.4% compared to Q2 2023, totaling €71.8 million, mainly due to an increase in engine shop activity.
TAP reopened five destinations for the summer season—Ibiza, Alicante, Palma de Mallorca, Menorca and Agadir—as well a route from Lisbon to Caracas, Venezuela, with return via Funchal, Azores.
The airline has been the subject of potential acquisition by Lufthansa, Air France-KLM and IAG as each airline group remain open to further expansions and have outlined their interest. Portugal’s previous center-left government began the privatization process for the country’s flag carrier in 2023. It is understood that the new government, which assumed office in April, is also considering a sale.
TAP offers more than 1,250 weekly flights to 85 cities in 30 countries through its hub of Lisbon. Destinations include six airports in Portugal, nine in North America, 14 in Latin America, 13 in Africa and 43 in Europe, in addition to Portugal.
For the second half of 2024, TAP’s bookings remain in line with the previous year, although with some pressure on yields, the airline said.
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