TAP cuts winter capacity up to 70% after heavy nine-month loss

TAP Air Portugal has reported a Q3 net loss of E119m, and expects to reduce its winter capacity by 60-70% year on year as Europe’s second Covid-19 wave continues to heavily impact operations. The loss compares with a E1.2m net profit in Q3 2019. For the nine months ended 30 September, the carrier made a net loss of E701m, deepening one of E111m a year ago. TAP’s Q3 operating loss of E183m compares with a E129m profit in the same period of 2019. Revenue plummeted 81% to E195m, while operating costs were down 59% at E378m. Cash outflows relating to aircraft operating leases fell 43% in Q3, says the airline, “reflecting negotiations with lessors for payment deferrals and permanent lease reductions”. For the full year, TAP expects these renegotiations to reduce operating lease outflows by about E175m. The airline plans to submit its restructuring plan to the European Commission on 10 December. “This plan aims to ensure the sustainability and profitability of TAP through adequate planning of routes and fleet, adjusting the offer to the current market environment post-Covid-19,” it says.<br/>