Portuguese airline TAP halves first-half losses

Portuguese airline TAP more than halved first-half losses to E202m ($200.2m), it said on Tuesday, citing a strong demand recovery once COVID-19 restrictions ended. Total operating income in the six months to June 30 more than tripled from a year earlier to E1.3b and passenger revenue jumped nearly fivefold to E1.1b. The airline posted a E493m loss for the first six months of last year. “The second quarter saw very healthy demand and higher revenue per passenger, which allowed us to offset the increase in costs,” CE Christine Ourmieres-Widener said. The airline, which is 72.5% controlled by the Portuguese state, is under a Brussels-approved rescue plan worth E3.2b and was forced to reduce its fleet size, cut more than 2,900 jobs and reduce wages. Under the restructuring plan, TAP is also required to wind down its aircraft maintenance business in Brazil. “Prospects for the fourth quarter and next year remain uncertain. The execution of the restructuring plan remains key,” Ourmieres-Widener added.<br/>