TAP Air Portugal returns to earnings in the second quarter of 2023. A positive sign just months before its partial privatization.
Having escaped bankruptcy, the unlisted Portuguese public airline made a profit of 80.3 million euros in the second quarter, compared to a loss of 80.4 million euros during the same period last year. The company carried 7.5 million passengers, an increase of more than 30% in one year. The company said that this number represented 96% of 2019 levels.
Who from IAG, Lufthansa or Air France would get their hands on TAP?
In dire financial straits since 2017, the group’s financial concerns increased post-pandemic. Then, with the approval of Brussels and the Portuguese government, a bailout plan was decided upon, which in particular provided for the partial privatization of the company. So far, no name has been officially announced, but Lufthansa, Air France or even IAG will be in the running. However, the first company also finds itself in difficulty after the cancellation of state aid by European justice, and has just spent 325 million euros for its stake in ITA Airways (formerly Alitalia). At Air France, if nothing is confirmed or denied, the airline now has money to invest, just months after the full payment of the PGE was announced. Finally, at IAG, profits are also up and the group announced the acquisition of Air Europe for €500m last February.
Privatization that will not be effective before 2024
However, this partial privatization will not be completed before 2024 and will take several months to become effective. According to several sources, the Lufthansa Group will be in first place, and the sale process will start next October. “The government will seek to approve the privatization as quickly as possible, but this legally depends on the airline’s value being determined by independent consultants. said Fernando Medina, Portuguese Finance Minister. For his part, this was stated by Luis Rodriguez, CEO of the company “The results show the company’s continuous trend towards commercial and financial improvement and that the operating margins and debt reduction trajectory, beyond the targets of the restructuring plan, prove the financial viability of the group.”
