TAP Air Portugal has reported a full year 2021 net loss of €1.6 billion including the recognition of non-recurring costs of €1.025 billion, largely attributable to the closure of TAP ME Brasil. The carrier’s FY21 revenue increased year-over-year by 31 percent to €1.39 billion.
On Monday (April 11, 2022) TAP Air Portugal reported their full year 2021 financial results for the period ending December 31, 2021. The carrier reports a full year loss of €1.6 billion on a year-over-year increase in revenue of 31 percent to €1.39 billion. The new result includes the recognition of non-recurring costs of €1.025 billion, largely attributable to the closure of TAP ME (Maintenance & Engineering) Brasil, as part of TAP SGPS and TAP SA’s restructuring plan. Despite pandemic-related travel restrictions, particularly outside of the Schengen area, TAP was able to limit losses with careful route management and aircraft deployment, resizing human resources and personnel costs, large scale supplier contract renegotiations, and the adoption of strict control of expenditures companywide.
Thanks to travel recovery and TAP’s comprehensive restructuring plan, the carrier closed 2021 with a positive recurring EBITDA of 11.7 million. The airline handled 25.1 percent more passengers compared to 2020, although still only 35.5 percent of customers served in 2019. For 2021, passenger revenues increased year-over-year by 25.8 percent (up €218.8 million), while cargo revenues increased versus 2020 by 88 percent (€110.5 million), fully offsetting a 25.1 percent year-over-year decline in maintenance revenue of €13.7 million.
TAP’s recurring operational expenses for 2021 totaled €1.87 billion, a decrease of 2.7 percent compared to 2020, reflecting restructuring measures and decreased employee costs, including the gradual departure of 1,480 employees and salary reductions initiated in March 2021. The airline’s liquidity position benefited by capital increases in May and December of €462 million and €536 million, respectively, and TAP closed 2021 with €812.6 million in cash, an increase of 57 percent compared to December 31, 2020.
Throughout 2021, TAP launched a diversification strategy which included the addition of new destinations such as Montreal, Cancun, Punta Cana, Maceió, Zagreb, Ibiza, Fuerteventura, Agadir, Oujda, Monastir and Djerba. During the year, the carrier also phased out two Airbus A330ceos, three Airbus A320ceos and two Airbus A319ceos, while introducing two new fuel-efficient Airbus A321neo LRs and three A320neos, ending 2021 with a fleet of 94 aircraft. At December 31, 2021, 66 percent of TAP’s medium and long-haul fleet consisted of new generation ‘neo’ aircraft, compared to 57 percent at the end of 2020 and 43 percent in 2019.
Source: TAP Air Portugal