Despite a positive second quarter, Portuguese carrier TAP has been unable to offset losses incurred in the first quarter, but the airline is claiming a “solid recovery” following a “challenging” start to the year.
The three months to 30 June produced a 1.7% rise in operating revenues to €1.13 billion ($1.32 billion), driven by a 3.1% increase in passenger income.
TAP says it benefited from the late Easter holiday during the quarter.
Chief executive Luis Rodrigues says the second-quarter performance helped “partially offset” the impact of “extraordinary events” in the first.
TAP’s second-quarter operating profit was down by 22% at €122 million, and its net profit fell 42% to €37.5 million.
“We continue to operate in a highly competitive environment, with pressure on unit revenues and persistent operational challenges across the industry – particularly affecting punctuality,” says Rodrigues.
“As we navigate one of the most operationally-challenging summers in recent years, with severe border control constraints at Portugal’s airports significantly impacting our operations, we remain focused on ensuring reliable operations.”
TAP ended the first six months of this year with an operating loss of €9.1 million ($10.6 million), in contrast to last year’s profit of €83 million.
It also posted a heavier interim pre-tax and net losses of €115 million and €70.7 million respectively. The carrier says it recorded €42.7 million in foreign-exchange losses over the first half.
“Forward bookings remain broadly in line with the previous year, despite increased capacity and a [noticeable] shift towards shorter booking windows,” the carrier states.
“Competitive pressures in key markets are expected to remain, maintaining pressure on yield evolution.”
TAP has a fleet of 99 aircraft – comprising 58 Airbus single-aisle jets and 22 A330s, plus 19 regional airframes – and, while it says aircraft deliveries have experienced delays, it expects the arrival of two A321neos and an A320neo by the year-end.
