TAP Praises Maintenance Performance

Clearing a supply chain bottleneck helped TAP Maintenance & Engineering (TAP M&E) post a big jump in third-quarter revenue as its parent airline credited it for driving improvement in the company’s performance.

“TAP delivered a solid performance in [the third quarter], with higher revenues, supported by a significant contribution from maintenance, solid operating results and positive net income that fully offset the first half losses, building on the momentum from the second quarter,” commented Luis Rodrigues, CEO of the Portuguese flag carrier group.

For the three months to Sept. 30, TAP M&E posted revenue of €80 million ($92 million), up 64% year-over-year, while revenue for the first nine months climbed 18%.

TAP said that the big jump in third-quarter sales “was driven by the receipt of essential materials that enabled the execution of works, despite persistent supply chain challenges affecting timely deliveries.”

The surge in maintenance income arrived as Portugal seeks to start privatizing its flag carrier group. Up to 49.9% of the group’s share capital is up for sale, with 5% reserved for TAP employees. A decision is expected next year, with the likeliest buyer expected to be one of Europe’s big airline groups.

If so, TAP M&E’s engine capabilities should make it an attractive asset as capacity constraints continue to pressure shop visit slots and turnaround times.

Focusing on CFM International CFM56 and Leap-1A overhauls, TAP M&E performed 53 shop visits in 2024.

It also sought to improve productivity with the implementation of digital solutions and a new training program and to increase capacity by making key infrastructure investments through 2024.

This included an upgrade to its engine test cell in Lisbon to handle the Leap-1A, while the MRO provider also has long-term plans to add capability for the Boeing 737 MAX’s Leap-1B engine.