Portugal: Air carrier TAP posts loss of 136 million euros in first half

1 August 2008

Lisbon, Portugal, 1 Aug – Portuguese air carrier TAP posted a loss of 136 million euros in the first half of 2008, “the worst result in the last few years,” due to the rise in fuel prices, the company said Thursday in Lisbon.

In a statement, the company said it spent 312 million euros on fuel, or 133 million more than in the first six months of 2007, which was “a rise of 75 percent.”

TAP had forecast and budgeted for a “significant” increase in the price of fuel, but “the steep rise that was seen exceeded all expectations, as its price doubled in just six months, whilst previously it would have taken four years to see a similar percentage rise,” the statement said.

In the first six months of 2008, TAP’s revenues totalled 977 million euros, or 20 percent more than last year, with the sale of tickets totalling 804 million euros, or 21 percent more than in the first half of 2007.

TAP carried “its highest number of passengers ever” in the first six months of the year, totalling 4.1 million euros, or 22.3 percent more than in 2007.

By areas of the company’s network, 2.426 million passengers were transported in Europe (26.1 percent), the domestic market transported 769,000 passengers (12.5 percent), Brazil had 511,000 passengers (28.4 percent) and Venezuela 44,000 passengers (5.1 percent). (macauhub)