TAP obtains a net profit of €65.6 million in 2022

Portuguese airline TAP posted a profit in 2022, ahead of its restructuring plan, as higher revenues and lower personnel costs offset higher fuel prices, the company said Tuesday.

TAP said it posted a net profit of €65.6 million ($70.4 million) in 2022, compared with a net loss of €1.6 billion a year earlier.

In 2022, the airline carried 13.8 million passengers, up from 5.8 million the previous year and close to 81% of pre-pandemic levels.

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TAP is currently restructuring under a €3.2 billion rescue plan approved by Brussels, which includes reducing its fleet, cutting thousands of jobs and reducing the salaries of most workers. Under the plan, the airline aimed to achieve positive operating results by 2023 and an annual net profit by 2025.

TAP’s operating revenues increased to €3.5 billion in 2022, up from €1.39 billion in the previous year. Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) were €777.7 million, compared to negative €999 million in 2021.

“During the first full year of the restructuring plan, TAP generated an operating profit that is an all-time record for the company,” outgoing CEO Christine Ourmieres-Widener said in a statement.