LISBON (Reuters) – Portuguese airline TAP reported rare third-quarter net profit on Wednesday thanks to strong cash inflows and currency hedging, but said visibility for next year remains low.
The state-owned company, which is undergoing restructuring, posted a profit of 111 million euros ($110 million) with a loss of 134. 5 million a year earlier.
TAP’s operating profit jumped to €1. 1 billion from €444 million a year earlier, mainly due to higher tariffs and higher capacity, as demand strengthened again after COVID restrictions were lifted, even amid runaway inflation.
Recurring profit before interest, taxes, depreciation and amortization (EBITDA) of €280 million exceeded pre-pandemic levels.
“TAP confirms its strong third-quarter functionality with all monetary measures above pre-crisis levels, despite a further build-up in fuel costs,” Chief Executive Officer Christine Ourmieres-Widener said in a statement.
He added that while the call for the fourth quarter remains very strong, “visibility for next year is still low and given the iffy environment, there is even more of a need to focus on our strategic plan that has proven itself so far. “
TAP’s restructuring as part of a €3. 2 billion rescue package approved by Brussels includes cutting its fleet, cutting more than 2,900 jobs and cutting top staff salaries by up to 25%. It will also have to end maintenance on its aircraft. activity in Brazil.
The CEO said in September that TAP was meeting its goals, getting hornier with a potential foreign partner, while it was up to the government whether and when to reprivatize TAP.
As a component of the plan, TAP is expected to have positive operating effects in 2023 and an annual net profit in 2025, recovering from a record loss of €1600 million in 2021.
($1 = 1. 0101 euros)
(Patricia Vicente Rua reports; Edited by Andrei Khalip and Elaine Hardcastle)
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