New York – TAP Portugal returned to profitability in 2016, posting a net profit of €34 million for the year. The return to profitability was in spite of a €156M decline in revenue, from €2.242B in 2015 to €2.398B. However, this was more than compensated for by substantially reduced operating costs, which at €2.042B were €227M lower than in 2015.
The year was marked by strong capitalization by the airline’s new shareholders, including the creation of TAP Express and the complete renewal of the regional fleet, the launch of the Ponte Aérea shuttle service between Lisbon and Porto, the continuing retrofitting of the Airbus fleet, and the launch of programs such as the Portugal Stopover program.
TAP’s fleet has gone from being one of the oldest to the youngest now operating in continental Europe.
2016 was also marked by the company’s expansion in the North American market with new routes to Boston and New York’s JFK and an increase in the number of flights per week to Newark and Miami, more than doubling the airline’s weekly service to the United States.
Also, TAP introduced a new fare structure in 2016, with competitive prices and new client programs, which has increased the airline’s market share.
With this new fare structure, renewed fleet, new routes and products and a greater focus on clients’ needs, TAP carried a record 11.7 million passengers in 2016 – 400,000 more than in 2015 – despite a 3 percent capacity decrease.
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