Grupo SATA carried 2.1 million passengers in the first nine months of 2024, reaching this figure for the first time in its history. Compared to the same period last year, this figure represents an increase of 14%.
In terms of revenue, last year’s growth trend continued, with more than 350 million euros, representing an increase of around 17% compared to the same period in 2023.
The available capacity increased by 12% compared to the first months of 2023, resulting in an overall increase in the Group’s average load factor of 1.5 p.p. to 80.9%.
Some extraordinary events with a negative impact on the operation and the evolution of the operational and regulatory cost structure led to a drop in consolidated EBITDA to 17.8 million euros up to September 2024, compared to 40.4 million euros in the same period last year.
The accumulated net profit to September is negative by 43.6 million euros, compared to a negative 11.1 million euros in the same period last year, as a result of the reduction in EBITDA, the increase in depreciation costs, which results from the increase in the available fleet, and impairments. Conversely, there were improvements in the Group’s financial expenses.

Azores Airlines within the quarter and with results reflecting an increase in costs

SATA Internacional – Azores Airlines maintained the trend of revenue growth sustained by the increase in capacity made available for the IATA summer, enabling it to reach a total of 143.1 million euros in the third quarter of 2024, 27.4 million euros more than in the third quarter of 2023.
This growth is based on several factors, including a series of operational and commercial initiatives that have provided an increasingly comfortable travel offer, with a focus on new routes, such as Ponta Delgada – Montreal, Ponta Delgada – Milan, and Ponta Delgada – Faro.
This is also due to the increase in new direct routes between Porto and Funchal to the USA and Canada via ACMI, which turned out to be unsuitable commercial options, mainly due to increased associated costs. This last effect was particularly visible in the 3rd quarter of 2024, when the ACMI operation took place between June and September, a fact that did not occur in 2023.
Considering the first nine months of 2024, the company reached 278.6 million euros in revenue, an increase of 23% compared to the same period in 2023. The significant increase in passengers carried in the third quarter contributed to these figures, around 613,000, up 15% compared to the same quarter in 2023.
The average load factor was 85.7% in the third quarter of 2024, down 1.2 percentage points on the same period last year, as a result of the increase in production with larger aircraft, with a significant part of this reduction resulting from the offer made through ACMI, which was based on oversized aircraft, negatively impacting the load factor.
Despite the increase in revenue, the third quarter of 2024 saw an increase in operating costs, a trend seen in several other players in the sector.
Azores Airlines continued to show high pressure on costs after the first half, marked by irregularities caused mainly by weather issues and delays in completing maintenance work.
Operating costs for the third quarter increased by 28.6 million euros (31% more) compared to the same period in 2023, mainly due to the following factors: 5.7 million euros more in personnel costs, 5.4 million euros more in ACMI costs, 9.4 million euros more in direct fuel, handling, and catering costs.
Operating earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter were positive by 20.6 million euros. Accumulated operating profits until September 2024 total 15.6 million euros, compared to 24.6 million euros in the same period last year.
Depreciation and amortization costs in the third quarter of 2024 increased by 2 million euros (22% more), mainly due to adding two new aircraft to the fleet, compared to last year.
Earnings before interest and taxes (EBIT) in the third quarter were also positive by 9.2 million euros, bringing the total for the year to September to a negative 15.7 million euros.
Although net results continue to be pressured by high operating and financial expenses, totaling a negative 34.9 million up to September, net income for the third quarter of 2024 was positive by 2.8 million euros.
To reverse the economic results recorded in the first half of 2024, the company has been reformulating its operational plan, focusing on the company’s core routes, connecting the Azores to mainland Portugal, the diaspora and the main origins of tourists in the Azores (Spain, France, Germany, and Italy).
It has also developed measures to improve operational efficiency, namely the reformulation of catering, the introduction of the on-board sales service, and the restructuring of SATA’s customer service channels, the impacts of which are already beginning to be visible in the control of operating costs.

SATA Air Açores with an increase of 8.2 million euros

In the third quarter of 2024, SATA Air Açores posted revenues of 39.1 million euros, 1.8 million less than in the same period of the previous year. In accumulated terms, revenues reached 90.5 million euros in the first nine months of the year (4.9% more than in the same period of the previous year) and reflect the growing demand for supply, which resulted in an increase in the average load factor not only in the quarter compared to the same period of the previous year (81.1% vs. 79.3%), but also in the accumulated figures, which rose from 74.5% to 77.5% in the first nine months of the year.
The rise in costs is mainly the result of an increase in personnel costs (up 2.6 million euros, 18.1% more) and irregularities/indemnities. ACMI of 1.8 million euros compared to the 3rd quarter of 2023, and aircraft maintenance costs of around 2.1 million euros (82% more), resulting from unscheduled maintenance events and charges for engine rentals necessary for the continuity of operations.
These factors resulted in an increase in accumulated operating costs until September 2024, which totaled 87.9 million euros, 19% more than in the same period in 2023.
This increase in revenue and improvement in load factor indicators reflects the rise in the number of passengers carried, 21,000 more passengers (6% more) in the third quarter of 2024, compared to the third quarter of 2023, and 44,000 more passengers (6% more) accumulated to September compared to the same period in 2023.
The increase in revenue was not enough to accommodate the increase in operating costs, which rose in the third quarter of 2024 by 6.6 million euros (up 23.1%) compared to the same period in 2023 and 13.9 million euros in the first nine months of 2024 compared to the same period last year, causing additional pressure on the company’s EBITDA.
Considering the increase in costs above revenue, there was a deterioration in operating earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to 2023, amounting to a positive 3.8 million euros in Q3 2024, compared to a positive 12.3 million euros in Q3 2023.
In the first 9 months of 2024, EBITDA was positive by 2.6 million euros, compared to 12.2 million euros in the same period of the previous year. Net income for the third quarter was positive by 800,000 euros, although heavily pressured by the reduction in EBITDA compared to the same quarter in 2023 (5.8 million euros).
In accumulated terms, net income stood at a loss of 8.2 million euros, compared to a loss of 5.6 million euros in the same period last year, even though there was a substantial reduction in financial charges (impact of the early repayment of a 60 million euro bank loan in September 2023). Mention should also be made of the measures implemented by the company to reverse the economic results achieved in the first half of 2024, namely the maximization of revenue and the adoption of measures to contain expenses and stabilize maintenance costs, the impact of which is already beginning to be visible in the control of operating expenses.

SATA Aerodrome Management with a net profit of 11 thousand euros

SATA Gestão de Aeródromos recorded increased revenue from airport operations in line with the increase in traffic at airports in the Autonomous Region of the Azores, largely based on the rise in production at SATA Air Açores. Sales and services rendered reached 3.1 million euros by September 2024, compared to 2.9 million euros in the same period last year, representing a variation of +7%.
It should be noted that, in addition to sales and services rendered, an estimate of Financial Rebalancing of 896 thousand euros was recorded, relating to the period of the 4th year of operation of the concession contract. Operating costs, in turn, totaled 4.2 million euros, an increase of 265 thousand euros, +7% compared to the same period last year.
The increase in revenue outstripped the increase in costs and translated into an increase in EBITDA. EBITDA was negative by 184 thousand euros, representing an improvement of 828 thousand euros compared to the same period in 2023.
The company’s net profit continued to evolve positively, going from a loss of 777 thousand euros to only 11 thousand euros.

In Correio dos Açores-Natalino Viveiros, director

Translated to English as a community outreach program from the Portuguese Beyond Borders Institute (PBBI) and the Modern and Classical Languages and Literatures Department (MCLL) as part of Bruma Publication and ADMA (Azores-Diaspora Media Alliance) at California State University, Fresno, PBBI thanks Luso Financial for sponsoring NOVIDADES.