TAP, the flag carrier of Portugal, announced on Wednesday that it achieved a net profit of 23 million euros ($25 million) in the first half of 2023. This was due to robust revenue growth, driven by tourism, and the company is expecting a strong performance for the remaining year.
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In the same period of 2022, the state-owned airline was in the red by 202 million euros. TAP reported a surge in operating revenue by 44% to 1.9 billion euros from the previous year, as fares increased and capacity rose following the lifting of COVID restrictions. The airline's recurring earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 57% to 361.7 million euros, and its EBITDA margin increased to 19% from 17.4% last year.
Luis Rodrigues, the CEO, stated that these results indicate the company's ongoing trend of commercial and financial progress. He also added that the company is prepared for the intense second half of the year as demand is still strong, with bookings reaching considerable levels for the coming quarters.
TAP is undergoing a restructuring plan approved by Brussels for a 3.2 billion-euro rescue, and between January and June, it carried 7.58 million passengers, which is a 30% increase from the previous year. The government is planning to partially privatize TAP and initiate the sale process by October while keeping a strategic stake. IAG, Lufthansa, and Air France-KLM have expressed their interest in TAP.