By Sergio Goncalves
LISBON (Reuters) – Portuguese airline TAP’s first-quarter net loss widened 20% from the same period a year ago as aggressive competition and a pilot strike at its low-cost carrier Portugalia squeezed revenue.
The airline on Friday reported a loss of 108 million euros ($122.52 million) between January and March, a period that this year did not include the busy Easter week.
The beginning of the year was “challenging”, Chief Executive Luis Rodrigues said in a statement, estimating the impact of the 20-day strike at Portugalia and the late Easter holiday on the company’s operating results at between 30 million euros and 40 million euros.
Rodrigues said he is committed to transforming TAP into a “sustainable, profitable and attractive company” despite ongoing challenges from competitive pressure and macroeconomic uncertainty.
Strong competition, mostly in Brazil, led to a 4.9% fall in passenger revenue per available seat-kilometre for the quarter.
Overall revenue was down 4.5% year-on-year to 823 million euros.
TAP has long been earmarked for privatisation, but the process has once again stalled as the centre-right minority government led by the Democratic Alliance coalition collapsed two months ago, remaining in only a caretaker role.
The centre-right coalition won Sunday’s national election and its leaders have said the new government will resume the sale of TAP, which had attracted interest from Lufthansa, Air France-KLM and British Airways owner IAG.
($1 = 0.8815 euros)
(Reporting by Sergio Goncalves; editing by Inti Landauro, Kirsten Donovan)
