TAP’s latest losses “worry the State”

TAP – Portugal’s ‘flagship airline’ under private management – has posted a new set of million euro losses, leaving the State holding company Parpública “very concerned”.

Parpública President Miguel Cruz admitted to Lusa that the first three months of the year are always worse for airlines than the second and third, but the “magnitude” of losses, this year and last ‘needs careful watching’.

The latest results – showing losses of 120 million euros – mean the airline has lost another 30 million more than it did during the same period last year.

Said Cruz, the way forwards will be to “deepen mechanisms of strategic accompaniment”, allowing the State more ‘information sharing’ to help put the company “back on a positive trajectory”.

Parpública’s boss seemed to suggest that TAP could make significant gains by improving efficiency and expanding into new markets, but he didn’t mince his words: the State is watching developments “with great preoccupation”.

On the wider sphere however, Parpública itself is doing ‘very nicely, thank you’ – passing from losses of 26.9 million euros in the first quarter of 2018 to profits of 24.8 million for the same period this year, up to 46.5 million by the end of June.

The positive results owe much to the performance of Águas de Portugal – posting profits in all sectors – and a general reduction of debt all round.

Other companies overseen by Parpública are GALP, Estamo, Florestgal, Lisnae, Sagesecur, Inapa, Baía do Tejo, Companhia das Lezírias and Imprensa Nacional Casa da Moeda.

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