"TAP is expected to start making sustainable money in the near future and has the ability to be, in my opinion today, what an interesting company it is," said the non-executive director and also chairman of the TAP Strategy Committee appointed by the state shareholder.
About the losses of TAP, the official wanted to remind that "in the last 45 years TAP has had two years of positive results".
"There have been 43 years of losses and with respect to half-yearly losses of those who were announced – and who made, by the way, front page titles – if there had been any search for information for people to know more, they would have realized that there were five years ago that the results were worse than these ", reinforced.
The official spoke on Thursday at the 31st National Congress of Hospitality and Tourism, organized by the Portuguese Hotel Association (AHP) and which has 450 participants, under the theme "Portugal: Preparing Tomorrow".
Diogo Lacerda Machado praised all the work done by the private shareholder, the David Neeleman consortium, and the fact that he, having only 45% of TAP instead of the previous 100%, agreed to reconfigure a 'fruitful' strategic plan. However, affirming that "the owner of the future of TAP is the Portuguese State".
TAP posted accumulated losses of 111 million euros in the first nine months of this year, which it attributes to "currency fluctuations without impact on cash flow," according to a statement released on November 18.
"TAP SA posted an accumulated loss of 111 million in the first nine months of the year mainly due to exchange rate variations without impact on the treasury. Excluding this exchange rate variation, TAP Group's consolidated net income for the third quarter of 2019 was 61 million euros, offsetting by 50% the loss generated in the first half of 2019 ", the company said.
The company recorded almost 120 million euros in losses in the first six months of the year.
The company garnered consolidated revenues in the third quarter of 2019, which amounted to 1,052 million euros, "an increase of 6.1% over the same period last year, supported by the growth of the US market and the recovery of Brazil. "according to the same note.
The group's consolidated operating income was 129 million euros in the third quarter of 2019, "equivalent to 12.2% of revenues, in line with other European peers", the company guarantees.
According to the statement, in 2019, "TAP has already written off more than 170 million euros of financial liabilities". In addition, TAP's average debt maturity "doubled in four years from less than 24 months at the time of privatization in 2015 to approximately four years at the end of the third quarter of 2019," the company reveals.
TAP also indicated that it has obtained a BB- rating, with stable outlook, "by the rating agency Standard & Poor's, pending a rating from a second international entity".
The airline also plans to "hire more than 800 new employees next year, of which more than 100 are pilots and about 600 will be flight attendants to cope with TAP's growth."
According to the group, since the privatization TAP has already hired more than three thousand employees in Portugal.
On the same day, TAP announced the launch of a new senior bond offering, with an indicative value of 300 million euros and maturity by 2024, indicating that "proceeds from the offering, if completed", will be for "anticipation of reimbursement of certain loans under TAP's existing liabilities and extension of their average maturity "as well as for" payment of fees and expenses related to the tender offer ".
. (tagsToTranslate) TAP (t) Lacerda Machado