TAP Air Portugal group increased its losses last year to 1.6 billion euros (about $1.745 billion), against 1.2 billion euros in 2020, following the implementation of a restructuring and problems at its Brazilian subsidiary, the airline announced Monday.
TAP’s results were affected by “non-recurring costs of 1.024 billion euros” linked to the restructuring plan, the company said in a statement.
→ Portuguese Government to Inject 600 Million Euros More in TAP This Year.
However, TAP’s losses are lower than the projections of 1.75 billion euros foreseen in the aid plan, reported AFP.
The group’s activity was mainly impacted by the “accumulated losses” of its aeronautical maintenance subsidiary in Brazil, whose closure TAP announced earlier this year.
The closure of TAP M&E” (TAP Maintenance and Engineering), which contributed to the collapse of the airline’s accounts in recent years, was one of the demands of the European Commission in return for the aid plan it approved in December.
→ Tap Portugal to resume flights to Venezuela.
TAP also indicated that it suffered in the first half of the year from the restrictions linked to the covid-19 pandemic that paralyzed air transport.
The group only resumed its international flights to Brazil and the United States, two of its main markets, in the last quarter of 2021.
Photo: Douchet Quentin/Wikimedia
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