TAP slips into operating loss as bidders stay profitable
TAP posted a first-half operating loss as fuel costs surged, while Lufthansa and Air France-KLM remained profitable ahead of a key step in Portugal’s privatisation process.
TAP fell into an operating loss in the first half as higher jet fuel costs hit the Portuguese airline, while Lufthansa and Air France-KLM, the two groups seeking a partial acquisition of TAP, remained above the line on operating profit.
TAP reported a net loss of €99.2 million in the first half, 40% worse than a year earlier, and an EBIT loss of €56 million, compared with a positive €122.5 million in the same period last year. Chief executive Luís Rodrigues described conditions as “volatile and challenging” and said the sharp rise in fuel prices, especially jet fuel, had put significant pressure on second-quarter performance.
The company’s fuel bill rose 18.7% year on year in the half, linked in the report to the war in the Middle East. Revenue held broadly stable at €1.125 billion, down 0.6% from a year earlier, but that was not enough to offset the increase in costs.
By contrast, Lufthansa said its second-quarter operating profit fell by €515 million to €346 million, from €861 million a year earlier, while Air France-KLM reported operating profit of €484 million, down from €736 million. Lufthansa’s quarterly revenue rose 8% to €11.1 billion and Air France-KLM’s increased 9.9% to €9.3 billion, suggesting that their larger scale has so far helped absorb the fuel shock better than TAP.
Originally published at Eco.pt
