Portugal’s TAP posts 1.6 billion euro loss, sees ‘cautious optimism’ for 2022

The first A330neo professional passenger aircraft for Tap Air Portugal airline is noticed at the Airbus shipping middle in Colomiers near Toulouse, France, November 26, 2018. REUTERS/Regis Duvignau

LISBON, April 11 (Reuters) – Ailing Portuguese airline Faucet posted an annual decline of 1.6 billion euros ($1.74 billion) on Monday, when voicing “cautious optimism” that 2022 would convey superior success regardless of uncertainties prompted by the Ukraine war and the pandemic.

The airline, which is 72.5% controlled by the Portuguese state, is underneath a Brussels-authorised rescue plan really worth 3.2 billion euros and was forced to lower its fleet size, lower a lot more than 2,900 work opportunities and cut down wages.

Tap said its 2021 final results have been damage by the closure of its aircraft upkeep company in Brazil and the depreciation of the euro in opposition to the greenback.

The firm, along with the relaxation of the field, was nonetheless facing “unparalleled degrees of uncertainty” due to different variables, from COVID-19 to Russia’s invasion of Ukraine, Main Govt Officer Christine Ourmieres-Widener instructed a news convention.

Soaring inflation may build additional worries, mostly because of to the expense of products and gasoline, she mentioned.

Main Economic Officer Goncalo Pires explained the airline would have to have to “carry on to conduct in line” with its restructuring prepare in get to present far better final results in the potential.

“Providing the program is about maximising income but also managing costs,” Pires informed reporters. “There are lots of external variables, so we need to come across strategies to mitigate those people.”

Beneath the restructuring approach, Faucet also experienced to wind down and shut its plane upkeep enterprise in Brazil, which represented a non-recurring loss of 1.03 billion euros.

In 2020, the airline posted a 1.2 billion euros loss owing to the pandemic. Ourmieres-Widener stated Tap was not likely to arrive at pre-pandemic amounts in advance of next yr.

The enterprise transported 5.83 million travellers very last 12 months, up 25% on 2020, but only 34% of the pre-pandemic amount in 2019.

($1 = .9170 euros)

Reporting by Patrícia Vicente Rua and Catarina Demony Enhancing by Inti Landauro, Ed Osmond and Mike Harrison

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