Portugal's airline TAP posts $1.2bn euro 2020 loss as COVID-19 stifles travel
- The airline received a 1.2 billion-euro rescue loan in 2020 from the state, which holds a 72.5% stake, allowing it to keep operating and end last year with a cash position of about 520 million euros, TAP said.
- It is the third year in a row the airline has posted a loss, after ending 2019 in the red by 95.6 million euros.
LISBON: Portugal's ailing state-owned airline TAP on Thursday posted an annual loss of 1.2 billion euros ($1.44 billion) as passenger numbers fell by almost three quarters last year due to the impact of the COVID-19 pandemic on global travel.
The airline received a 1.2 billion-euro rescue loan in 2020 from the state, which holds a 72.5% stake, allowing it to keep operating and end last year with a cash position of about 520 million euros, TAP said.
"Both the operation and the results in 2020 were severely impacted by the drop in activity as a result of the COVID-19 pandemic, with passenger numbers falling 72.7%, after growing for four consecutive years," the company said.
It is the third year in a row the airline has posted a loss, after ending 2019 in the red by 95.6 million euros.
TAP reduced its operating fleet to 96 aircraft last year from 105 in 2019.
In December, the government proposed 2,000 job cuts by 2022 and pay cuts of up to 25% as part of a rescue plan for the airline, estimating TAP would need around 2 billion euros in extra funds guaranteed by the state to cover its financing needs until 2024.
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