In the first nine months of 2023, TAP once again achieved a historic milestone by generating a record net profit of 203.5 million euros.
Operating Revenues in the first nine months of 2023 have surged to EUR 3.2 billion, demonstrating a
significant increase of EUR 725m (+29.7%) compared to the same period in 2022.
The first nine months have witnessed a significant performance in our financial and commercial
metrics. TAP has delivered a Recurring EBITDA of EUR 752.4m, with a margin of 24%, as well as a solid
Recurring EBIT of EUR 400.7m, with a margin of 13%
At the end of June 2023, TAP reimbursed the 2019-2023 Bonds, totaling EUR 200 million. There was a
significant improvement in the Net Financial Debt / EBITDA ratio on 30 September 2023, reaching a level
of 2.4x, marking a notable improvement on the ratio of 3.5x recorded at the end of 2022.
Luís Rodrigues, TAP Chief Executive Officer, said: “Q3 results are encouraging and validate the
organisational focus of delivering a good summer to our passengers. We are moving headway to step up
the robustness of our operations and the quality of our passenger service, accelerating the recovery
from two difficult previous years.
“The remarkable surge in revenues, backed by resilient operating margins and a strong deleveraging plan
in place, underscores our Group’s financial strength in the face of critical challenges. On this path we rely
on the commitment and dedication of all our people, to establish, together, TAP as a reference in the
sector.”
REVIEW OF THE THIRD QUARTER OF 2023
In 3Q23, the number of passengers carried increased by 5.2% compared to the same period in 2022,
while operating 5.7% more flights than in the third quarter of 2022 (“3Q22”). Compared to pre-crisis
levels of 3Q19, TAP carried passengers reached 90% and operated flights 86%.

Capacity (measured in ASK) increased by 9.0% compared to 3Q22, reaching 95% of pre-crisis levels. The
Load Factor stood at 84.8%, decreasing by 2.2 p.p. year-on-year, but 1.9 p.p. higher than pre-crisis levels.
Operating revenues increased by 12.5 % compared to 3Q22, increasing by EUR 139.5m to EUR 1,258.5m,
surpassing and representing 121% of 3Q19 operating revenues. This was mainly driven by higher yields
along with increased capacity.
Regarding the passenger segment revenues, they increased by EUR 179.4m (+17.9%) compared to 3Q22
to EUR 1,181.3m, generating a PRASK of EUR 8.13 cents - an improvement of 8.2% (+EUR 0.61 cents)
compared to 3Q22 and 33.3% (+2.03 cents) with 3Q19.
Recurring operating costs reached EUR 982.2m, representing a 1.7% increase or EUR 16.0m rise
compared to the third quarter of 2022.
The recurring EBITDA amounted to EUR 390.7m in 3Q23, representing an increase of EUR 110.7m
compared to 3Q22, and it has been positive for nine consecutive quarters since the pandemic crisis. The
recurring EBIT increased by EUR 123.6m compared to 3Q22, amounting to EUR 276.3m. EBIT reached
EUR 265.9m (+EUR 124.8m vs. 3Q22) when considering non-recurring items. In comparison to 3Q19,
Recurring EBIT and EBIT increased by EUR 146.4m and EUR 137.4m respectively.
The net income amounted to EUR 180.5m, the highest quarterly net income since quarterly records are
published, showing an improvement of EUR 69.2m compared to 3Q22 and EUR 179.4m in comparison to
3Q19.
As of 30 September 2023, despite the EUR 147.3m decrease compared to 31 December 2022, following
the normal cash consuming seasonal pattern of the industry in the third quarter and the reimbursement
of the EUR 200m 2019-2023 Bond, the balance sheet showed a robust cash and cash equivalents
position of EUR 768.8m.
The Net Debt/EBITDA ratio significantly improved to 2.4x compared to year-end 2022 (3.5x).
Operationally, there were no changes in the network during the third quarter. In terms of the operating
fleet, it comprised 98 aircraft as of 30 September 2023, where 68% of the medium and long-haul
operating fleet consisted of NEO Family aircraft (compared to 66% on 30 September 2022 and 33% on 30
September 2019)