In the first quarter of 2023, SATA Internacional - Azores Airlines, S.A. recorded a net profit of -22.7 million euros, despite reaching "historic revenue levels" of 35.8 million euros. According to the information provided by the SATA Group, the explanation lies in the increase in operating costs by around 12.6 million euros (+40%) compared to the same period of 2022, not only due to inflation and fuel prices, but also to the increase in personnel costs. Conditioned by this increase in costs, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) was -8.8 million euros in the first quarter.The airline, which is expecting a public tender for its partial privatization, also highlights the impact on negative net income of restructuring costs, higher depreciation and amortization of aircraft, high financial costs with the intra-group loan to SATA Air Açores, and exchange rate differences.More passengers and flightsIn the first three months of the year, the number of passengers exceeded pre-pandemic levels by 45%, registering 221 thousand passengers carried, 45% more than in the first quarter of 2022. The company operated 1,772 flights (+ 38% when compared to the same period last year and + 40% compared to the pre-pandemic period); registering a load factor higher by 9.7 p.p., compared to the same period last year.This operational performance allowed the company to reach 35.8 million euros in revenue, which corresponds to 55% more than in the first quarter of 2022 and 64% more than in the same pre-pandemic period. But, according to the SATA Group, regarding personnel costs, there was an increase of 24% compared to the first quarter of 2022, due to the negotiations of company agreements carried out at the end of 2019, the withdrawal of the 10% cuts in salaries, as well as the reinstatement of career progressions and updating of seniority; and increased activity (+51%).Regarding fuel costs, there was an 80% increase compared to the same period in 2022, accounting for 37% of total revenue. The provision of other services also had an increase of 25% compared to last year, namely in commissions associated with sales (+500 thousand euros), travel and stays of flight personnel (368 thousand euros), handling costs (+610 thousand euros), airport taxes (+55%) and catering (+830 thousand euros).More revenues do not prevent a result of -7.1 ME at SATA Air Açores SATA Air Açores - Sociedade Açoriana de Transportes Aéreos, S.A. recorded an increase in operating revenues (excluding operating subsidies) of 18.9% in the first three months of the year, compared to the same period of 2022.However, the increase in operating costs, by around €4.6 million compared to the first quarter of 2022, led to an EBITDA of around €1.2 million and a net profit of €7.1 million.The growth in the company’s operational activity helped revenue, according to the information provided by the SATA Group. A total of 3,143 flights were carried out, 8% more than in the first quarter of 2022, and the number of passengers increased by 25% compared to the same period, resulting from an additional aircraft in August last year. The load factor was 9.7 p.p. higher than in 2022.However, this growth in operating activity and revenues was also accompanied by a growth in costs in the first quarter of 2023 "directly related to the activity, of a higher order, and also motivated by inflationary pressures and the renegotiations of Company Agreements", which led to an increase in total operating costs of around €4.6 million compared to the same period last year, which represents a growth of 39%.Thus, personnel costs rose by 22% in the first quarter, fuel costs increased by 36% (+400 thousand euros), and in other supplies costs increased by 33% (330 thousand euros more in airport taxes, 320 thousand euros more in maintenance, and compensation to passengers which increased by 236% to a total of around 100 thousand euros).