Portuguese national carrier TAP is in a “critical financial situation” with a 247.2 million euro black hole in its capital accounts for the first six months of the year.
Its debts are above the 171.7 million euros registered by the end of 2008 according to a bi-annual report published on Monday by Parpública, the airline carrier’s sole shareholder.
In the report, Parpública states that the “TAP group’s total accumulative financial debt (including long-term loans to finance the purchasing of new aircraft) at the end of the first half of 2009 had reached 1.3 billion euros even so, a global reduction of 31 million euros on the end of 2008.
While the group’s own capital grew by 140 million euros (+4.3 per cent) in some ‘Aeronautical Activity’ areas, overall, its capital, which was already negative by the end of 2008, saw a reduction of 77 million euros.
However, the situation for the airports company ANA (Aeroportos de Portugal) was completely different with ANA “continuing to present a sound capital and overall financial situation” in the region of 389 million euros.
Despite a reduction in demand at airports, ANA managed to make profits of 21.4 million euros in the first half of 2009 compared to 20.4 million euros in the first half of 2008.
“These positive results were possible because of a reduction in operational and financial costs of 2.6 per cent,” said the report.