"2018 was difficult one for TAP, both operationally, economically and financially but it was a year that did not compromise our future," claimed Miguel Frasquilho, president of the airline's Board of Directors.
The TAP group recorded a loss of €118 million last year 2018, compared with a profit of €21.2 million the year before.
The Group's revenue increased from €2.978 billion in 2017 to Euro €3.251 billion in 2018, an increase of €273 million, up 9.1% over the same period of last year but the company still managed to make a loss.
Frasquilho said that 2018 was, “a year that allowed us to continue to take root so that the strategic plan could be implemented as expected."
The Group's revenue growth includes the expansion of the US market (revenue up 10%), but negatively affected by the effect of the Brazilian currency devaluation, down 16%.
Total operating costs increased 14.7% in 2018, mainly due to extraordinary and non-recurring costs.
"The extraordinary costs are a consequence of the cancellation of 2,490 flights that required the hiring of replacement airplanes with crews and the payment of compensation to passengers, totaling some €41 million,” TAP statement reads, "union agreements have been reached that ensure social peace in the company," adds the company blurb.
In 2018, a pre-retirement and voluntary exit program was also implemented in Portugal, costing €26.9 million.
Fuel costs rose from €580 million in 2017 to €799 million in 2018 with the airline’s fleet growing from 88 to 92 aircraft.
In the last 18 months, the company has launched 17 new routes that contributed to the increase of the group's revenues and a cost cutting programme was started, which allowed savings of around €115 million.
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