Profit won’t cover fraction of lawsuits facing national carrier
TAP Air Portugal has announced a profit of €53.7 million in 2024 – a drop of 69.7% compared to the previous year – and not even a fraction of the money it stands to pay out in current and potential lawsuits.
In a statement, however, the airline emphasised the positive result achieved for the third consecutive year and pointed out that, compared to 2019 – the last year before the pandemic – results grew by €149.4 million.
TAP’s CEO, Luís Rodrigues, said in the same statement that these results “were achieved in a very challenging year, marked by a significant increase in competition in the airline”s main markets, strong currency devaluations, operational challenges, namely in air traffic control and adverse weather events, and structural constraints, such as the aircraft limit”.
In the last quarter of last year, the net result was a loss of €64.5 million, a decrease of €38.3 million or 145.8% compared to the same three months of 2023, when the result was -€26.2 million.
In 2024, operating revenues totalled a new all-time high of €4.24 billion, an increase of 0.7% compared to 2023 and 28.6% above 2019 levels.
TAP carried 16.1 million passengers last year, an increase of 1.6% compared to 2023, but operated 1.5% fewer flights, with both indicators below 2019 levels.
The airline highlighted the “strong performance of the maintenance segment”, with an increase of 44.6%, particularly in the engine workshop activity, which also contributed to the increase in revenue.
Recurring operating costs increased by 0.8% year-on-year, reaching €3.86 billion in 2024.
Recurring EBITDA (earnings before interest, taxes, depreciation and amortisation) reached €875.3 million in 2024, with a margin of 20.6%, increasing by €3.7 million or 0.4% compared to 2023.
In addition, recurring earnings before interest and taxes (EBIT) totalled €382.7 million, with a margin of 9%, representing a decrease of €3.2 million or 0.8%. The airline pointed out that this “reflected a level of consolidated profitability in line with 2023, successfully accommodating the new Company Agreements and the increase in staff costs. “
As of December 31, TAP had a solid liquidity position of €651.6 million, excluding the third capital tranche of €343 million, executed by the State on January 17 this year.
TAP’s CEO also referred to the “significant increase” in the customer satisfaction index, compared to 2024, which recognises “the continuous increase in punctuality and regularity”.
The airline’s leader nonetheless warned that 2025 will be equally “challenging” as well as ‘the last year of the restructuring plan’.
As for the lawsuits which remain unmentioned, they include the possible pay-out of compensation to over 1,000 employees, and a case for unfair dismissal in which former CEO Christine Ourmières Widener is demanding almost €6 million. ND
Source material: LUSA
