Tag Archives: TAP Air Portugal

TAP’s second quarter results show strong operational and financial recovery

TAP – Air Portugal issued this financial report:

TAP is recovering from the crisis, with ASK, number of passengers and number of departures reaching between 81% and 92% of pre-crisis 2019 levels, while revenues reached 99% of their pre-crisis level in the second quarter of 2019 (“2Q19”).

PRASK increased by 80.7% and 8.5% compared to 2Q21 and 2Q19, respectively, with Load Factor increasing by 32 percentage points compared to 2Q21 to 80.4%, reaching 96% of pre-crisis 2019 levels.

There was a strong operating result in 2Q22, with positive EBIT and Recurring EBIT amounting to EUR 66.4 million and EUR 47.9 million, respectively, above pre-crisis levels.

The cumulative Net Income for H1 2022 was EUR -202.1 million, still clearly negative, but EUR 291.1 million better than in the same period of 2021 and improving quarter-on-quarter.

There is an increase in the liquidity position to EUR 889.8 million, guarding against the fact that the second semester is seasonally the largest consumer of liquidity.

Christine Ourmières-Widener, TAP Chief Executive Officer,  said: “The second quarter saw very healthy demand and higher revenue per passenger, which allowed us to offset the increase in costs. Prospects for the fourth quarter and next year remain uncertain. The execution of the restructuring plan remains key.”

An analysis of operations in the second quarter of 2022 shows that the number of passengers carried quadrupled, compared to the same period of 2021, reaching 82% of 2Q19 levels. Additionally, during this period, TAP operated more than twice as many flights as in 2Q21, or 81% of 2Q19 departures.

Capacity (measured in ASK) increased by nearly three times compared to 2Q21, with the Load Factor improving by 32 p.p. when compared to the same period of 2021, reaching 80.4%. Compared to 2Q19, ASK are at 92% and Load Factor at 96% of pre-crisis levels.

Operating revenues were almost four times higher than in the same period last year, increasing by EUR 597.4 million to EUR 830.6 million, representing 99% of 2Q19 operating revenues. This was predominantly driven by increased fares and higher capacity, resulting in an increase in passenger segment revenues by EUR 586.4 million vs. 2Q21 to EUR 740 million and generating a PRASK of EUR 6.16 cents – an 80.7% improvement compared to 2Q21 and 8.5% compared to the same quarter in 2019.

The Maintenance and Cargo areas contributed to the increase in revenues with EUR 7.8 million and EUR 7.3 million, respectively. The Maintenance area ended the second quarter with revenues of EUR 18 million, up 76.9% on 2Q21. In turn, revenues in the Cargo area amounted to EUR 67.4 million, up 12.2% compared to 2Q21.

Recurring operating costs amounted to EUR 782.7 million, increasing by 92.5% compared to 2Q21. This significant increase reflects the higher level of activity, given an ASK increase of 166.5% during this period. Compared to the same period of 2019, recurring operating costs were 4.1% lower, despite an increase in fuel costs of EUR 71.6 million.

The CASK of recurring operating costs recorded a 27.8% reduction compared to 2Q21 to EUR 6.52 cents, which also compares to EUR 6.25 cents in 2Q19 (i.e., +4.4%). Excluding fuel, the reduction in unit costs is even more visible, with CASK ex-fuel reducing by 45.4% vs. 2Q21 and 9.9% vs. 2Q19.

Fuel costs increased by EUR 217.5 million vs. 2Q21, or close to five times, to EUR 277 million. There was, nevertheless, a positive hedging effect of EUR 54.5 million, which partially offset the sharp increase in the market price of jet fuel observed during the quarter.

Recurring EBITDA, recorded for the fourth consecutive quarter a positive figure and reached EUR 156.8 million in 2Q22. This represents an increase of EUR 211.7 million compared to the same period in 2021.

Recurring EBIT reached EUR 47.9 million, an increase of EUR 221.4 million compared to 2Q21. Considering non-recurring items, EBIT was positive by EUR 66.4 million (up EUR 216.1 million vs. 2Q21). Compared to 2Q19, Recurring EBIT and EBIT improved by EUR 29 million and EUR 50 million, respectively.

Non-recurring items, predominantly related to a release of provisions due to a reduced cost estimate for litigation and settlement risks related to the closure of M&E Brazil, in total had a positive impact of EUR 18.5 million on results.

Net Profit improved by EUR 47.6 million compared to 2Q21 to EUR -80.4 million, despite the negative net impact of foreign exchange differences of EUR 58.2 million resulting from the unfavorable evolution of the Euro versus USD.

The Balance Sheet showed a strong cash and cash equivalents position of EUR 889.9 million at the end of the quarter, increasing liquidity levels compared to both 4Q21 and 1Q22.

The cash position on 30 June 2022 was more than 1.5 times higher than at the same date in 2021, reflecting an increase of EUR 347 million. The EUR 990 million contribution approved by the European Commission in TAP’s restructuring plan is still pending and is expected to be executed by the end of the year.

From an operational perspective, a total of seven destinations that were temporarily suspended were reopened (of which four are seasonal from the summer season), such as: Ibiza, Tangier, Djerba, Monastir, Alicante, Boa Vista and Caracas.

With the relaunch of Boa Vista, TAP Air Portugal resumes operations to all international airports in Cape Verde, and with the relaunch of Caracas, operations to all long-haul destinations are now restored. Regarding the operational fleet, during the quarter, TAP recorded a net increase of three aircraft to 96. On 30 June 2022, 66% of the medium and long-haul operational fleet consisted of NEO family aircraft (compared to 63% on 30 June 2021 and 27% on 30 June 2019).

First Half

Looking at the first half year-to-date, revenues reached EUR 1 321.2 million in the period, an increase of 245% compared to 1H21. Together with the higher level of activity (ASK increased by 217%), operating costs also recorded a significant increase of 73% to EUR 1 316.8 million, leading to a positive EBIT of EUR 4.4 million, an increase of EUR 381.7 million compared to 1H21.

Recurring EBIT, excluding non-recurring items of EUR -3 million, was also positive at EUR 1.4 million. Net interest and unfavorable currency developments, particularly in the second quarter, led to a Net Profit at EUR -202.1 million, still EUR 291.1 million better than in the same half of 2021 (“1H21”).

TAP aircraft photo gallery:

TAP Air Portugal sees a massive 526% increase in traffic between Europe and Brazil

"Vasco da Gama"

TAP Air Portugal (TAP) experienced a massive 526% increase in customers carried between Europe and Brazil in the first six months of 2022, compared to the previous year.

The Portuguese flag carrier flew more than 640,000 customers on more than 3,100 flights, grabbing nearly a third (28%) of the whole market share of all customers flown between Europe and Brazil.

During the first half of 2022 it operated 3,129 flights and was the third largest international airline in the number of take-offs, representing a huge increase of 130% compared to the same period in 2021.

This summer, TAP will operate 76 flights a week between Portugal and Brazil, the largest number of flights by a foreign airline flying to Brazil.

TAP connects Europe to 11 cities in Brazil from its Lisbon hub, flying to São Paulo, Rio de Janeiro, Belém, Belo Horizonte, Brasília, Fortaleza, Natal, Maceió, Porto Alegre, Recife and Salvador. The airline also connects Porto with São Paulo and Rio de Janeiro.

Currently, TAP connects Portugal with three destinations in the United Kingdom – London Heathrow, London Gatwick and Manchester – as well as offering flights to the Irish capital, Dublin.

The airline, which boasts one of the youngest fleets in Europe, currently operates a mix of short-haul and long-haul Airbus aircraft, from the state-of-the-art A330neo to the game changing single-aisle A321neoLR.

The carrier’s regional arm also operates a fleet of ATR and Embraer aircraft for those travelling a shorter distance.

Top Copyright Photo: TAP Portugal – Air Portugal Airbus A330-941 CS-TUR (msn 1943) AMS (Ton Jochems). Image: 958273.

TAP aircraft photo gallery:

TAP-Air Portugal operates its first sustainable aviation fuel (SAF) flight

TAP-Air Portugal operated its first sustainable aviation fuel (SAF) flight on July 23.

On July 23, TAP Air Portugal, in partnership with ANA – Aeroportos de Portugal and Galp has taken one more step towards a greener future, carrying out the 1st flight with sustainable fuel (SAF), between Lisbon and Ponta Delgada (Azores). This fuel allows a reduction of up to 80% in the carbon footprint, meeting International Air Transport Association (IATA)’s resolution of achieving net zero carbon emissions by 2050.

TAP-Air Portugal aircraft photo gallery:

TAP Air Portugal celebrates its 77th anniversary

On March 14 TAP Air Portugal celebrated its 77th anniversary at the Air Museum!

On this special day, the airline commemorated the reopening of a dedicated area to TAP’s history.

Here are some photos of the best moments!

Emirates and TAP Air Portugal sign MOU to expand strategic partnership

Emirates and TAP Air Portugal made this announcement:

Emirates and TAP Air Portugal have signed a Memorandum of Understanding (MOU) to expand the codeshare partnership currently in place between both airlines.

The new agreement will see customers of both airlines benefit from seamless connectivity on many new routes across the Americas, North Africa and East Asia. Emirates and TAP Air Portugal will also explore ways to enhance the co-operation on their respective frequent flyer programs including reciprocal earning and redemption opportunities and popular benefits such as lounge access.

In addition, both airlines plan on supporting each other’s stopover programs in Dubai and Lisbon, with Emirates also supporting TAP Air Portugal as it looks at potential expansion opportunities in the UAE.

Subject to required regulatory approvals, the expanded agreement is expected to come into effect from May 1, 2021, will provide customers with seamless booking, ticketing and travel benefits across 70 destinations on both airlines’ networks.

Under the expanded partnership, TAP Air Portugal will place its code on Emirates’ flights to popular East Asia destinations such as Taipei, Tokyo, Osaka, Mumbai, Delhi, Dhaka, Male, Jakarta, Denpasar, Manila, Hanoi, as well as Barcelona and Mexico City.

Emirates customers will be able to seamlessly access additional domestic destinations in Portugal, as well as TAP Air Portugal’s flights to cities in the USA, Canada, Mexico, Brazil, Senegal, Guinea-Bissau, Guinea-Conakry, Morocco, Tunisia, Gambia, and Cape Verde.

TAP announces new routes for Summer 2021

TAP Air Portugal has made this announcement:

Summer network planned based on seasonal expansion opportunities.

  • Departing from Lisbon, Zagreb, Fuerteventura and Ibiza are TAP’s new destinations in Europe.
  • TAP will fly to two new destinations in Tunisia: Djerba and Monastir.
  • Oujda is the new destination in Morocco.

TAP takes advantage of seasonal expansion opportunities to plan and strengthen its network, taking into account its strategy between Europe and the Americas, as well as Africa. For Summer 2021, the Portuguese airline plans to launch six new routes: Ibiza and Fuerteventura, in Spain; Oujda, in Morocco; Zagreb, in Croatia; and Djerba and Monastir, in Tunisia.

From June next year, TAP will offer two weekly flights from Lisbon to Ibiza and one from Lisbon to Fuerteventura, in Spain.

TAP new flights in Spain and Zagreb, in Croatia, are now available for sale. The other routes will be available from September 15th. Inaugural flights are scheduled between May and June 2021, with the exception of Zagreb, which is scheduled to start in March next year.


Ibiza, Fuerteventura and Zagreb are the new destinations in Europe

Lisbon-Ibiza flights depart on Saturdays and Sundays, departing from Lisbon at 11 am and arriving on the Spanish island at 1:45 pm, from where they return at 2:30 pm and arrive at Humberto Delgado airport at 3:25 pm.

TAP will have a weekly flight, on Saturdays, to Fuerteventura, departing at 11 am from Lisbon and arriving at 1:20 pm. In the opposite direction, flights depart at 2:05 pm and arrive in the Portuguese capital at 4:10 pm.

Between Lisbon and Zagreb, three weekly flights will be operated, on Wednesdays, Fridays and Sundays. Departures from the Portuguese capital will be at 8:00 am with scheduled arrival at the capital of Croatia at 12:05 pm.

Destinations with white sand beaches in North Africa

Tunisia will become part of TAP’s summer network next year. Djerba and Monastir are the two destinations, in Tunisia, where TAP will fly on Sundays and Fridays, respectively, departures from Lisbon at 09h25 and 10h00 and arrivals at 12h30 and 12h55 pm.

TAP will offer two weekly flights to Oujda, in Morocco, on Saturdays and Sundays, departing from Humberto Delgado Airport at 10 am and arriving on the African continent at 12:05 pm.

Cancun, Cape Town, Agadir and Santiago de Compostela with inaugural flight scheduled for 2021

It will be in 2021 that the first flights departing from Lisbon to Cancun, Cape Town, Agadir and Santiago de Compostela will take off, four destinations announced this year, which saw the start postponed due to the current situation.

The list of routes and flights will be adjusted whenever circumstances require, in view of the dynamics of restrictions and demand.

TAP Air Portugal aircraft photo gallery:

TAP Air Portugal resumes 65 routes in August and 76 in September

TAP Air Portugal has made this announcement:

In September, the Portuguese carrier replenishes about 40 percent of its normal pre-Covid operation.

  • About 500 round-trip flights per week in August.
  • In September, TAP will have close to 700 round-trip flights per week, which is equivalent to about 40 percent of its normal pre-Covid operation.

TAP is gradually restoring its operation and has approximately 500 weekly round-trip flights scheduled for August, for a total of 65 routes.

In September, the Company expects to operate close to 700 flights per week, in a total of 76 routes.

TAP increases its offer in the month of August, when it starts offering 18 weekly flights to Brazil, 20 flights to six destinations in North America, 44 flights to 9 destinations in Africa, 329 flights to 30 cities in Europe and 126 flights to six domestic airports.

It is in September, however, that TAP will restore its operation in a more significant way, recovering about 40 percent of what was its normal offer in the pre-Covid period. This month, the national airline will have 22 flights a week to Brazil, 30 flights on eight routes in North America, 59 flights to 13 cities in Africa and the Middle East, 498 flights to 35 European cities and 159 flights between six cities in Portugal.

The list of routes and flights may be adjusted whenever circumstances require, in view of the dynamics of the evolution of taxes and restrictions in the various countries, due to the evolution of the pandemic, as well as the evolution of demand. This list can be found here.

Even knowing that the environment on board is one of the most sterile and safe from the point of view of the contagion of infectious diseases, given the air quality and the cabin configuration, TAP adjusted the routines and implemented new and reinforced procedures, guaranteeing all passengers a Clean & Safe environment at all stages of their journey. Everyone’s health and safety are TAP’s priority.

TAP Air Portugal aircraft photo gallery:

TAP Air Portugal aircraft slide show:

https://airlinersgallery.smugmug.com/frame/slideshow?key=sXHngk&speed=3&transition=fade&autoStart=1&captions=0&navigation=0&playButton=0&randomize=0&transitionSpeed=2

 

Video: TAP Air Portugal: maintaining the fleet during COVID-19

Video:

Our Maintenance and Safety teams continue to play a fundamental and successful role in the Company’s main priority: the safety of its customers and employees. Check this video and get to know the backstage of the work that has been done to ensure the safety of extraordinary flights and the maintenance of parked planes.

TAP Air Portugal opens three new connections in the Americas with the Airbus A321LR

TAP Portugal - Air Portugal Airbus A321-251N WL CS-TJI (msn 8270) LHR (Tony Storck). Image: 947178.

Lisbon-Maceió, Lisbon-Montreal and Lisbon-Ponta Delgada-Boston are TAP’s new routes.

  • Unbeatable economy and efficiency of new aircraft drive the Company’s growth.
  • In four years, TAP already serves the same number of North American cities as it does in Brazil.

TAP continues to invest heavily in the Americas and once again expands its network of transatlantic destinations with the launch of three new routes: Maceió, in Brazil; Montreal, Canada; and Lisbon-Ponta Delgada-Boston, in the United States, all starting next year.

The Company’s three new connections reinforce TAP’s growth commitment in Brazilian and North Atlantic markets.

A321LR allows expansion of operation in Brazil

Relative to Brazil, this is the first time in five years that the Portuguese Company announces a new route.

Maceió 

In 2020, Maceió, capital of the northeast state of Alagoas, is the latest city in Brazil to be served by TAP’s new generation Airbus NEO aircraft, thus becoming TAP’s 11th Brazilian destination.

Maceió is a great  destination for families and lovers of sun, sea and culture. Warm, turquoise beaches for all tastes, golden sand and coconut tree-lined roads are some of the undeniable beauties of the this exciting new destination in TAP’s Brazilian network.
The route will have three weekly frequencies. Departures from Lisbon are at 17:15 with arrival at the Brazilian destination at 21:15, on Wednesdays, Fridays and Sundays.

Investment in the most modern, efficient and comfortable equipment, notably the introduction of the new A321LR aircraft, allows TAP to also increase frequencies for the cities of Natal and Belém, increasing from three to five flights per week for each one. TAP’s A321LR is an exceptionally efficient aircraft in terms of fuel consumption and reduced carbon emissions. The aircraft’s smaller size and lower trip costs permits TAP to operate profitability in smaller markets that cannot be regularly served by larger widebody aircraft.

With the strengthening of the network in Brazil next year, TAP will operate in this market a total of 92 weekly frequencies, 15 more than in 2015.

Despite increasing competition in the Brazilian market, TAP maintained its market share at around 26%, with the European Company offering more routes and providing more seats. In 2018 alone, TAP carried 89% of passengers with direct flights between Brazil and Portugal.

TAP grows from three to 11 North Atlantic routes 

The inauguration of the Lisbon-Montreal and Ponta Delgada-Boston route shows the achievement of one of the strategic paths outlined since the beginning of TAP’s transformation process: the conquest of the North Atlantic.

The Canadian City with French Feeling: Montreal

Canada’s second largest city is TAP’s newest North Atlantic destination. Montreal is multicultural, cosmopolitan and has French feeling. Due to its historical heritage, the official language of the city is French, being the second largest francophone city after Paris in France.

To weather the cold and heavy snow during the winter, Montreal has one of the largest underground cities in the world, extending practically all over the city, with over 1500 stores and over 2000 restaurants. There are more than 30 kilometers of tunnels that make it easy to connect the main points of interest in the city.

The Airline will operate six weekly frequencies between Lisbon and Montreal. Flights depart to the new destination in North America from the Portuguese capital every day, except Wednesdays, at 2:55 pm and arrive in the Canadian city at 5:40 pm. And will be available for sale from November 25, with operations beginning next year.

In total, TAP will operate 82 weekly frequencies in the North American market next year, which represents a significant increase in supply compared to 2015, when the Company operated only 16 weekly frequencies. In Portugal, the Company will also increase the number of connections between Lisbon and Ponta Delgada, from 4 to 5 daily.

Ponta Delgada-Boston is one of the strategic routes that reinforce the Company’s growth in the North Atlantic. From 2020, Portugal will have, from Lisbon and Ponta Delgada, two direct routes to Boston, hub city of TAP partner JetBlue, which will allow the Portuguese company to carry even more passengers from various points of the US.

With these new connections and remaining supply increases, TAP expects to carry an additional 390,000 North Americans between Portugal and the North Atlantic next year, increasingly contributing to the national economy and the growth of the tourism. TAP currently carries close to one million passengers from North America to Europe.

North America is already one of the Company’s three main international markets. From 2015 to October 2019, the total number of Customers transported to and from North America has increased by 250%.

Top Copyright Photo: TAP Portugal – Air Portugal Airbus A321-251N WL CS-TJI (msn 8270) LHR (Tony Storck). Image: 947178.

TAP aircraft slide show:

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