Pandemic leads TAP to record losses of €606 million

in Business · 02-10-2020 01:00:00 · 0 Comments
Pandemic leads TAP to record losses of €606 million

Portuguese Air Transport (TAP) is experiencing a huge crisis in the aviation sector which is forcing the company to make cuts, after having seen huge losses.

According to Jornal de Notícias, TAP lost €582 million in six months, which represents almost all losses of the group between January and June (96 percent), with the TAP group adding losses of €606 million - results almost six times worse than those seen at 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).

This situation is forcing a profound transformation across the entire aviation sector, with staff cuts that already affect 300,000 professionals in Europe’s largest companies, wage cuts that reach 45 percent and a brutal reduction in fleets, as reported by Dinheiro Vivo.

In a business which sees fixed costs at 40 percent, any recovery before 2024 is not expected in the industry in terms of pre-pandemic values, according to International Air Transport Association (IATA)


Comments:

Be the first to comment on this article
Interactive Topics, send us your comments/opinion on this article.

Please note that The Portugal News may use selected comments in the printed edition of the newspaper.