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Portugal Flag Carrier TAP Loss Down 63% but Fuel Costs Loom

LISBON, May 25 (Reuters) - Portugal's airline TAP said on Monday its first-quarter loss narrowed 63% ​from a year ago to €39.9 million ($46.5 ‌million) on higher revenue, but warned that rising jet fuel prices due to the Iran ​conflict will weigh in coming quarters.

  • The ​flag carrier, which is being partially privatised, said ⁠the expected impact of jet fuel ​prices should be somewhat mitigated by capacity ​management, cost controls and pricing adjustments through a fuel surcharge.

  • Revenue rose 11% to €914 million, driven mainly ​by a 10% increase in passenger ​revenue to €810 million and a 32% jump in aircraft ‌maintenance ⁠revenue, alongside capacity growth.

  • Passenger numbers rose 6.4% to 3.7 million and load factor improved 4.8 percentage points to 83.5%, driven ​by South ​and North ⁠American markets.

  • EBITDA reached €92 million in the first quarter, reversing a ​negative €9.5 million a year earlier.

  • Operating costs ​remained ⁠broadly stable at around €954 million, with jet fuel costs still down 16% to €196 ⁠million ​in the quarter, but staff ​costs rising 9% to €252 million.

($1 = 0.8590 euros)

Reporting by Sergio ​Goncalves; editing by Andrei Khalip, Kirsten Donovan

Source: Reuters


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