TAP Air Portugal's net income dropped 69.7% to €53.7 million in 2024. Net losses more than doubled to €64.5 million, compared to a net loss of €26.2 million in the fourth quarter of 2023.
“The 2024 results confirm TAP's recovery trajectory started in recent years,” said TAP executive chairman Luis Rodrigues. “For the third consecutive year, TAP posted a positive net result, supported by the increase in revenues and the stabilisation of operating results.”
The Portuguese flag carrier's operating income totalled €4.2bn for the year, remaining relatively flat — up only 0.7% on 2023. Passenger revenues were a negative 0.8%, totalling €3.8bn and cargo revenues were down 6% to €173.1 million. Maintenance revenues were up 44.6%, driven by increased engine workshop activity, to €236.8 million. Operating income for the quarter was down 5.7% to €989.8 million.
Operating cost growth outpaced its income, increasing 1.5% to €3.9bn. For the quarter, operating costs were down 5.9% to €1bn.
The airline's operating result fell 9.3% to €314.4 million, however fourth quarter operating result improved 12.6% to a negative €23.8 million. The company's EBIT margin was down 0.8 percentage points to 7.4% in the year, though improved 0.2 points in the quarter to a negative 2.4%.
“These results were achieved in a very challenging year, marked by a relevant increase in competition in our main markets, strong currency devaluations, operational challenges, namely in air traffic control and adverse weather events, and structural constraints, such as the aircraft limit,” continued Rodrigues.
For the full year, TAP carried 16.1 million passengers, up 1.6%, and 3.8 million in the quarter, up 2%. Capacity was 0.6% in the quarter, though up 1.6% in the full year. Load factor averaged at 80.5%, improving 2.8 percentage points in the quarter and improved 1.5 percentage points to 82.3%. Revenue passenger kilometres (RPK) were up 3.4% in 2024 and 3% in the quarter.
As of the end of the year, TAP had a liquidity of €651.6 million, excluding the €343 million third tranche of capital executed by the shareholder on January 17, 2025. TAP said the capital injection gave TAP a net financial debt to EBITDA ratio of 2.2x.
The airline is currently facing a €5.9 million for an unfair dismissal trial lodged by former CEO Christine Ourmieres-Widener. She was dismissed in 2023. In addition, local media have reported that Portugal's supreme court upheld case put against the airline for reinstatement and compensation to cabin crew dismissed during the COVID-19 pandemic.
Additionally, the airline is continuing to seek privatisation, with Air France-KLM noting earlier in March, during its earnings report, that discussions on its acquisition of TAP are “positive” and there is a “strong interest” in partnering.