TAP Air Portugal first quarter net losses sink further

TAP Air Portugal's first quarter net losses fell down a quarter year-on-year (YoY) to €71.9 million, with operating revenues up a marginal 3% to €862 million and operating costs up higher at 8% to €919 million. The operating costs reflect its 57% hike in labour costs. Passenger revenues were up 5% YoY to €774.7 million and maintenance up 3.3% to €45 million. However, its cargo and mail revenues were down 24.7% to €36.7 million. Its operating result was down from a loss of €16.3 million in last year's first quarter to a greater loss of €57.1 million. ""In the first quarter of 2024 we continued the structural transformation that TAP required,"" said TAP CEO Luis Rodrigues. ""The investment in our people, including the termination of salary cuts, inflationary adjustments and new collective labour agreements have an immediate impact on the bottom line but it will continue to pay off."" Its revenue passenger kilometres (RPK) were up 4.2% to 9.8bn and capacity, measured in available seat kilometre (ASKs), were up 3.8% to 12.4bn. Passenger numbers were flat at a 0.6% increase at 3.5 million in the quarter. Rodrigues added: ""We trust fully in our people, and we know we will be up to the challenge of a strong summer, with a significant increase in frequencies to the Brazilian and North American markets. Our focus and commitment remain unchanged: to establish TAP into a sustainably profitable airline and as one of the most attractive companies in the sector for all our stakeholders."" Its available liquidity at the end of €1.1bn, up €344 million compared to the end of last year. Its total equity and liabilities at the end of the quarter was up 2.8% YoY to €6.1bn.