I just got this from the TAP Air Portugal website, on how they've made a profit in their third quarter. I find it a bit ironic that a company that in recent times has often failed to post a profit during the best of times is doing so well in the worst of times. I guess their structural reorganisation is doing well. I think it's good to hear a company doing well during these tough times for the industry.
TAP AIR PORTUGAL POSTS PROFIT IN SEPTEMBER AND STICKS TO YEAR-PLANNED TARGETS
Net result of 36.7 million Euros in the third quarter
"Preliminary results for the third quarter clearly demonstrate TAP's increasing capacity to pursue its recovery strategy", stated Fernando Pinto, C.E.O. of TAP Air Portugal, when announcing a positive net result of 36.7 million Euros posted in the third quarter of 2001, which is 13% higher than budget and 410% above last year's result for the same period.
From January to September, the Company posted an operating profit of 17.9 million Euros,140% better than budget-target for that period and compares to a loss of 26.2 million Euros at the end of 2000 third quarter.
In the end of September, the EBITDAR (result before interests, taxes, depreciation and lease payments) amounted to 113.3 million Euros, 10% more than budget and 39% better than same period last year.
TAP operating revenue for the nine-month period increased by 8.5% compared to last year's period, amounting to 933 million euros, while costs increased 3,2%.
"TAP already shows a new corporate culture based on the quality of services, flexibility and quick adjustment of its offer to market demand together with an extremely strict control in costs. This is the key to succeed its Recovery Plan", Fernando Pinto added.
"During this nine-month period, and in spite of the unfavourable scenario whose first signs appeared in April and worsened last September, we efficiently managed to stick to our targets.
This is a very significant step in our programme and it is important to outline this was only possible because the Company focused on its strategy, taking adequate cost reduction and offer adjustment measures on due time.
This is the orientation we will pursue to keep on track", Fernando Pinto concluded. TAP managed to maintain a system-wide load-factor of 72% in September in spite of the impact of several increasing costs and decreasing demand suffered by most of airlines world-wide.
Despite the difficulties TAP implemented as of September 14 an overall Cost Containing Plan which allowed the Company to reach a net result of 7,6 million Euros in September, doubling the one showed on same period last year.
In the first nine months TAP carried 4.2 million passengers, 3.1% more than last year's.
November 6, 2001