TAP Air Portugal reports €72.2 million second quarter profit

TAP Air Portugal reported a net profit of €72.2 million in the second quarter of the year, down 10.1% compared to the same period last year. In addition, it recorded an approximate €400,000 profit for the first half of the year, down 98.3% compared to the first half of 2023. The company said it was impacted by currency exchange losses with the devaluation of the Brazilian real. TAP Air CEO Luis Rodrigues commented: ""In the second quarter of 2024, we continued the necessary path of structural transformation of TAP. The investment in people and operations continues to confirm the focus and show results."" Operating income was up 3.4% in the quarter to €1.1bn, while first half revenues were up 3.3% to €2bn. Passenger revenues were flat at a positive 0.8% with €986.4 million. First half passenger revenues were up 2.6% to €1.8bn. ""The strong performance in the second quarter,” Luís Rodrigues continued, ""allows for a positive net result in the semester, which, despite being reduced, is achieved for the second consecutive time, but now without salary cuts."" The company's maintenance income was up 71.4% in the quarter to €71.8 million, while first half was up 36.7% to €116.9 million. TAP's cargo and mail revenues decreased 9.9% to €4.3 million due to the normalisation of cargo yields in the market, though still surpassing pre-COVID levels. Operating costs were flat for the quarter at a negative 0.8% with €938.6 million. First half operating costs were up 3.3% to €1.8bn. The company's operating result jumped 35.2% to €168 million in the quarter. However, for the first half of the year, it was up only a marginal 2.8% to €111 million. Rodrigues concluded: ""We continue on the path we set out to follow, with the commitment of our people and the support of our stakeholders: to establish TAP as a sustainably profitable company and one of the most attractive in the industry."" TAP carried 2.4% more passengers in the quarter compared to last year. Revenue passenger kilometres (RPK) were up 3.8%, while capacity was up 2.1% in the quarter. The first half saw a marginal 1.6% climb in passenger numbers. RPKs were up 4%, while capacity was up 2.9% in the first half. As of June 30, 2024, the Portuguese airline's total assets were valued at €6.2bn. Total equity and liabilities was similarly at €6.2bn. Its financial debt was flat at €1.4bn, including lease liabilities with purchase options at €813.4 million, up 3% compared to the end of last year. At the end of the quarter, it held €1.2bn in cash and cash equivalents. Its net financial debt had fallen from €651.1 million at the end of last year, down to €266 million at the end of the second quarter. The company's net debt to EBITDA ratio improved to 2.1x as of the quarter's end, compared to 2.6x at the end of last year.