Portugal’s airline TAP posts 1.6 billion euro loss due to Brazil business closure
2022.04.11 12:06
FILE PHOTO: The first A330neo commercial passenger aircraft for TAP Air Portugal airline is seen at the Airbus delivery center in Colomiers near Toulouse, France, November 26, 2018. REUTERS/Regis Duvignau
LISBON (Reuters) – Portugal’s ailing state-owned airline TAP on Monday posted an annual loss of 1.6 billion euros ($1.74 billion) hurt by the closure of its aircraft maintenance business in Brazil and the depreciation of the euro against the dollar.
The airline, which is 72.5% controlled by the Portuguese state, is under a Brussels-approved rescue plan worth 3.2 billion euros and was forced to reduce its fleet size, cut more than 2,900 jobs and reduce wages.
As part of this restructuring plan, TAP had also to wind down and close its aircraft maintenance business in Brazil, which represented a non-recurring loss of 1.025 billion euros.
In 2020, the airline posted a 1.2 billion euros loss due to the COVID-19 pandemic.
The company transported 5.83 million passengers last year, up 25% on 2020, but only 34% of the pre-pandemic level in 2019.
($1 = 0.9170 euros)
