TAP Air Portugal capacity recovered to 87% of pre-Covid crisis levels last year as travel rebounded but further cost challenges lie ahead due to rising inflation.
The Portuguese flag carrier ran 79% of pre-pandemic frequencies in 2022 with passenger numbers up to 81% of 2019 levels at 13.8 million.
This enabled the airline to return to the black with a net profit of €65.6 million, an increase of €1.6 billion on the previous year as revenues rose by 151% to €3.5 billion.
But fuel costs more than tripled, increasing by €756.2 million year-on-year to more than €1 billion, with hedging only marginally reducing the effect of increased prices.
TAP chief executive Christine Ourmieres-Widener said: “The level of forward bookings for 2023 indicates that there has been no change in demand, but TAP still faces challenges.
“2023 is about optimising revenues in an uncertain environment, further reducing costs against a backdrop of inflation.”
She pointed out that the airline generated the highest quarterly revenue in its history during the final quarter of 2022, recording profitability despite “continuous operational challenges”.
Ourmieres-Widener added: “TAP certainly delivered in 2022, producing a performance close to that forecasted for 2025. These positive results were made possible by the hard work and dedication of all employees, business partners and stakeholders.”