Portugal’s TAP increases revenues on its Brazil routes by 13 percent

20 July 2006

Lisbon, Portugal, 20 July – Revenues from routes to Brazil of the Portuguese airline TAP grew by 13 percent in the fist half of 2006, while earnings from African destinations showed a 15 percent increase, the company’s CEO has said.

Fernando Pinto told the Jornal de Negocios business daily that revenues from TAP’s Brazil routes will increase further in the second half of the year after the opening of six new flights from Portugal to Brazil.

TAP recently recorded its millionth passenger this year on its Brazil operations, reinforcing its presence on these routes after the suspension of flights to Portugal by embattled Brazilian national carrier Varig.

Between January and June of this year, TAP also registered an increase of 15 percent in revenues from its routes to Africa, particularly Luanda, Maputo and Sal in Cape Verde.

TAP’s revenues rose by euros 700 million, up 18 percent over the same period in 2005.

TAP’s CEO said the carrier’s performance was due to its “aggressive” stance, adding it is significant that “the number of passengers using TAP is growing more than the offer” in the market, which shows an average of 5 percent.

TAP’s costs increased in the first half of the year by 16 percent, said Pinto, and a third of these expenses were on fuel.

The TAP chief declined to comment on the company’s performance in relation to its euros 10 million profit target for this year.

TAP will present a strategic plan in September, added Pinto, that will outline profit objectives until 2009, “with a vision until 2015.” (macauhub)