National flag carrier TAP said net profits for the first time since 2017 last year despite the restructuring plan for the company approved by the government and the Commission predicting net profits to be first recorded in 2025.

“TAP today released its results for 2022, showing a positive net profit of €65.6 million, which represents growth in revenue above expectations,” the office of Infrastructure Minister João Galamba said in a statement.

In a year still affected by the pandemic, the war in Ukraine, “the soaring fuel prices and the change in the hub’s air traffic system, which significantly affected TAP’s business, the company proved its resilience,” the Ministry of Infrastructure said.

These results are the result of “the commitment to the process that aims to guarantee the company’s long-term operational and financial sustainability”, the ministry added.

In addition, “the possibility of producing Sustainable Aviation Fuel (SAF) at the Lisbon hub, the resolution of operational air constraints, and the new solution for strengthening airport capacity in the Lisbon region are seen as opportunities to create added value for TAP and for Portugal.”

The results are thus “a solid step forward for the future of the company and the country”, the ministry said, referring to TAP ending 2022 with a net profit of €65.6 – the first net profit since 2017 when the group achieved a positive result of around €21 million.

The net profit also contrasts sharply with the €1.6 billion loss it made the previous year, according to a statement released by TAP.

TAP’s restructuring plan, which the European Commission approved at the end of 2021, predicted TAP would start making a profit in 2025.

The plan also predicted the airline would achieve a positive operating result in 2023 – something the company achieved in the first half of 2022.

(Alexandra Luis/Lusa.pt)