Summary
- TAP Air Portugal ended 2023 with a recod-breaking profit, exceeding its 2017 results.
- Still, the airline’s CEO expected a troublesome 2024.
- The carrier’s privatization process has stalled after a government crisis that resulted in a snap election.
TAP Air Portugal, despite a privatization effort that has rocked forwards and backwards in the course of the 12 months, has managed to realize a record-breaking net profit result, surpassing the online income it earned in 2017. Looking forward, the airline will deal with sustainable profits by improving its various organizational processes.
Record-breaking result
TAP Air Portugal ended 2023 with a net profit of €177.3 million ($191.9 million), surpassing the online income result it posted in 2017. In comparison with a 12 months prior, the carrier’s profits grew by €111.7 million ($120.9 million), with the corporate’s revenues growing to €4.2 billion ($4.5 billion).
Photo: John Gress Media Inc | Shutterstock
Speaking in regards to the results, Luís Rodrigues, the chief executive officer (CEO) of TAP Air Portugal, stated that the 12 months’s results affirmed the airline’s recovery path in recent times. The chief noted that its record revenues, robust and resilient operating margins, and a transparent deleveraging trend have confirmed its financial strength.
![TAP Airbus A330-900 landing at Lisbon Airport](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/09/shutterstock_2051342570-1.jpg)
15% Growth Over 2023: TAP Air Portugal Carried Nearly 16 Million Passengers In 2023
TAP Air Portugal continues to grow after a powerful post-pandemic recovery and impressive 2022.
Expecting a difficult 2024
Nonetheless, Rodrigues noted that 2024 shall be a difficult 12 months, which is able to test the organization’s focus. As such, the CEO said that TAP Air Portugal will need the commitment of all of its employees to enable the Portuguese carrier to determine itself as one of the vital attractive corporations within the industry.
Photo: Wirestock Creators | Shutterstock
Meanwhile, the airline’s outlook said that the first goal for the upcoming financial 12 months is to execute its strategic roadmap, which might allow TAP Air Portugal to stay profitable in the long term. The carrier added that it’ll look to enhance its operations, put money into its people and customers, strengthen its deal with key markets, and capitalize on its strong results while also managing costs, improving money flow, and continuing deleveraging.
![A TAP Express Embraer E190AR flying in the sky.](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/11/shutterstock_2263551079.jpg)
TAP Air Portugal Adds 10 Weekly Flights To North America
The airline will now offer 77 flights per week between the US and Portugal.
Turbulent privatization process
The airline ended the 12 months with a fleet of 98 aircraft, split between 19 regional jets (12 Embraer E190 and 7 E195s), 22 widebody aircraft (three Airbus A330ceo, 19 A330neo), and 57 single-aisle jets, split between five Airbus A319ceo, 15 A320ceo, three A321ceo, 11 A320neo, ten A321neo, and 13 A321LR.
TAP Air Portugal’s total liabilities, including non-current and current, went right down to €5.8 billion ($6.2 billion), in comparison with €5.9 billion ($6.3 billion) a 12 months prior. Nonetheless, while at the top of 2022, it had €916.1 million ($991.9 million) of money in hand, the carrier ended 2023 with €789.4 million ($854.7 million) of money.
Photo: TAP Air Portugal
Nevertheless, one of the vital essential developments of the 12 months was the privatization strategy of the airline. While the Portuguese government initiated a sale of a 51% stake within the airline in September 2023 after a scandal inside the federal government, which resulted in snap elections on March 10, 2024, the method has stalled.
In response to the Portuguese outlet Publico, Rodrigues was adamant that despite the political crisis rocking the then-incumbent government, foreign investors, including other airline groups, have remained excited by the stake that was available on the market.
Nonetheless, a possible deal would need to be approved by the European Commission (EC), which has turn out to be more rigorous when reviewing mergers. While the EC approved the Korean Air-Asiana Airlines merger with certain conditions, it has already informed Lufthansa and the Italian government that it objected to the Lufthansa–ITA Airways merger, citing competition concerns on routes from/to Italy.
![TAP Airbus A330neo landing at GRU](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/09/lukas-souza-_cqef5xsq8w-unsplash.jpg)
TAP Air Portugal Finally Launches Privatization Process
The plan is to sell a controlling stake of 51% or greater and keep a strategic stake to protect the national interest at Humberto Delgado Airport.