Lisbon, May 23, 2025 (Lusa) - TAP S.A. reported a loss of €108.2 million through March, €18.1 million more than in the same period in 2024, in a first quarter impacted by "extraordinary events," it announced on Friday.
"The performance in the first quarter of 2025 was significantly impacted by the PGA pilots' strike, which lasted for 20 days. In addition, the comparability of operating results was further affected by the shift of Easter to the second quarter in 2025, unlike in 2024, when it occurred in the first quarter. Together, these factors are estimated to have had a financial impact on the operating results of between €30 million and €40 million," TAP said in a statement released today.
The airline (TAP S.A.) recorded a negative operating result (EBIT—earnings before interest and taxes) of €131.6 million in March, compared to €74.3 million in the same period last year.
Recurring EBIT was negative at €119.2 million (negative €60.3 million in the first three months of 2024).
EBITDA (earnings before interest, taxes, depreciation and amortisation) fell from €43 million to €9.5 million.
According to the unaudited consolidated financial statements, the recurring EBITDA was positive at €2.9 million, compared to €57 million in the first quarter of 2024.
"TAP had a challenging first quarter, reflecting its inability to increase capacity, but remains committed to its path of recovery, financial sustainability and structural transformation (...). The company's strategic focus remains unchanged in the face of an increasingly demanding and uncertain environment," the company said.
Operating revenues totalled €823.4 million, down 4.5% compared to the first quarter of 2024, reflecting "the impacts of extraordinary events", particularly the "reduction in revenues from the ticket segment, due to a stabilisation in capacity (-0.4%) and increased competition in the main markets, putting pressure on unit revenues".
Air ticket revenues decreased by €40.6 million, down 5.2% to €734.1 million.
TAP points to increased competition in the main markets where it operates, “particularly in Brazil”, where “the average daily number of seats increased by 2%, compared to an 18% increase by its competitors, putting pressure on unit revenues and resulting in an estimated reduction of around €25 million in flown revenue”.
Maintenance revenues totalled €44.3 million, down €400,000 due to "a slight reduction in activity due to constraints in the supply chain that affected the execution deadlines for the work, which was partially offset by better commercial conditions".
Cargo and Mail revenues increased by 6.0% year-on-year to €38.9 million.
Operating costs amounted to €955 million, up 2%, while recurring costs totalled €942.6 million, an increase of 2.2%, reflecting "mainly the increase in personnel costs (+€19.0 million or +8.9%) following salary increases and remuneration agreed in collective labour agreements, and operating traffic costs (€8.8 million or +4.7%), impacted by contractual price increases", partially offset by lower fuel costs (-€19.5 million or -7.7%).
There was also an increase in the Impairment of accounts receivable, inventories and provisions in the amount of €9.6 million, "mainly explained by the reinforcement of provisions for compensation to customers resulting from the PGA pilots' strike".
The flag carrier carried 3.5 million passengers, 0.6% less than in the first quarter of 2024, operating around 27,000 flights, down 0.5%.
MSF/ADB // ADB.
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