TAP Airlines Reports Significant Profit Drop Amid Rising Costs

TAP Airlines has reported a substantial decline in profits for the third quarter of the year, with net earnings falling to €117.8 million. This marks a decrease of €62.8 million compared to the same period last year, although it shows an improvement compared to pre-pandemic levels in 2019.

Financial Overview

In the third quarter, TAP Airlines reported a net profit of €117.8 million, a significant drop from the previous year. The company attributed this decline to rising operational costs, which increased by 6.4% to €1.045 billion. This rise in costs was primarily driven by higher personnel expenses and increased depreciation and amortization.

Despite the profit drop, TAP’s operational revenue for the first nine months of the year reached €3.25 billion, reflecting a 2.8% increase compared to the same period last year. This revenue growth is also notable when compared to pre-pandemic figures, showing a 30.6% increase from 2019.

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Passenger Traffic

TAP Airlines transported 12.3 million passengers in the first nine months of the year, achieving 95% of the passenger numbers from 2019. The third quarter alone saw a 1.3% increase in passenger numbers compared to the same period last year, although the total number of flights operated decreased by 1.1%.

Future Outlook

Looking ahead, TAP Airlines is focusing on improving operational efficiency and managing costs to navigate the challenging economic landscape. The airline aims to enhance its service offerings and expand its market presence as it continues to recover from the impacts of the pandemic.