TAP Airline To Record Loss Of 606 Million Record In History
October 02, 2020
88
Lisbon, Portugal (By Naveed Ahmed): Tap Air Losses of 582 million euros in six months for TAP, SA, which represent almost all of the group's losses between January and June (96%), with the TAP group adding losses of 606 million - results almost six times worse than those of the end of 2019, when the group closed the year with negative 106 million, but showing some recovery trend (profits of 14 million in the last half of 2019). TAP adding 280 thousand more passengers than in those months of last year, in a total of 2.4 million ( + 13.4%), with ticket revenues reaching 411 million euros (+71 million than in 2019) and cumulative EBITDA margin of 5.1% (+12.9 pp) -, the pandemic crisis brought the destruction of the work done. Along with the covid and also due to its effect, the volatility of the exchange rate and the price of jet fuel also contributed to destroying the expectations of a year in which the company could return to the green. Covid-19 caused huge losses to the air transport industry in particular, with TAP SA registering a negative consolidated net profit of 582 million euros in the first half of 2020, which represents 96% of the net profit of the first half of the year. Grupo TAP (consolidated from TAP SGPS), which was negative by 606 million euros ", justifies the company in the statement. In a business in which 40% of the costs are fixed, the action on the treasury and the restructuring that was being carried out - including the extension of the average term of TAP's debt from two to five years and measures carried out in the last two years on the structure Maintenance and Engineering in Brazil - still allowed the company to be insured until the first installment of the State's injection, which arrived in July. TAP to the demand that will emerge from this crisis and that the international association of the sector, IATA, points to a longer term than initially expected. According to IATA, before 2024 there will be no recovery in terms of pre-pandemic values. Perspectives that are forcing a profound transformation of the entire aviation sector, with inevitable staff cuts that already affect 300,000 professionals in Europe's largest companies, wage cuts that reach 45% and a brutal reduction in fleets, according to Dinheiro Vivo reported this Monday . March already being significantly affected by the containment measures adopted by national and international authorities, which ended demand and brought TAP to a temporary standstill, the company's operational capacity was devastated: "from March to June, the decrease in capacity was -34%, -99%, -98% and -97%, respectively, compared to the same months of 2019.(Please send your news, article, pictorial on our email address <editor@enewspaper.com.pk & WhatsApp +923132434567PLEASE SEND YOUR COMMENTS Thanks)(facebook ID shujaullahk)https://www.facebook.com/(twitter: KhanShujaullah)https://www.twitter.com/home(linkedin: shuja-ullah-khan)https://www.linkedin.com/feed/
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