TAP improves profits in second semester

In the first semester of 2009 the TAP Group registered a net negative profit of 72.4 million euros, an amount that is 53.2% better than the negative 154.9 million in the same period of 2008.

Operating revenue totaled 927 million euros reflecting a drop of 11.8% compared with 1,050.8 million in 2008.

However, it has been possible to improve net profit due to the accentuated drop in Running Costs over the same period which fell from 1,067.9 million in 2008 to 855.2 million this year, reflecting an improvement of 19.9%. Special mention for fuels, an area in which between January and June TAP spent 157.6 million compared with 313.2 million in the same period of 2008, in other words 49.7% less.

The world economic crisis has continued to strongly affect airline transport with substantial drops in passenger volumes and cargo transported. This has prevented the desired recovery from the crisis brought about by the rise in fuel prices during part of 2008.

Though at lower levels than the global average, TAP has also registered a drop in demand during the first semester in which it transported 3,854 million passengers, 6.2% less than in 2008. In terms of cargo, TAP dropped to 25,813 tons, down 24.6%.

Due to the seasonal factors that influence TAP operations, profits for the first semester are normally lower than those of the second. However, exogenous factors remain and are responsible for the doubt and uncertainty that has dogged the sector in recent months.

 (c) Centre for Asia Pacific Aviation. Date posted: 31-Jul-09