TAP recorded record revenues and passengers in the first half of this year, with a 4% growth in passenger numbers to 8.2 million and revenues up over 4% to more than two billion euros, driven by more aircraft and strong demand. The company also highlights the issuance of 350 million euros in debt at TAP's lowest ever credit spread for an issuance of this nature.
However, TAP's losses increased 40% in the first half to 99 million euros due to rising fuel prices caused by the Middle East war. Fuel costs soared over 50% in the second quarter to 270 million euros and rose 19% in the first quarter to 566 million euros. Jet fuel prices are currently 74% more expensive compared to the previous year, costing 163 dollars in Europe according to IATA data.
The results come at a time when TAP's privatization process is underway, after Lufthansa and Air France-KLM submitted binding offers, which will begin to be analyzed by the Government based on the report from state company Parpública. TAP's CEO, Luís Rodrigues, stated that the significant increase in fuel prices put relevant pressure on the company's performance, with the impact being felt immediately on costs while revenue mitigation measures tend to materialize more gradually.
