TAP back in black

 In News, TAP

Portuguese airline TAP closed 2021 with a positive own capital balance, taking it out of the situation of technical bankruptcy it has been in since 2020.

Eco online reports that the airline’e financial situation had already been fragile in 2019, with own capital levels down to €100 million.
With Covid-19 and the paralysis of International travel, losses skyrocketed, pushing the company into technical bankruptcy.
At the end of 2020, the black hole in the company’s finances of €1.154Bn, remained unchanged until the end of June, 2021 despite a cash injection of €462 million made by the State on month prior.
The situation changed after the Government advanced with a second cash injection of €1.794Bn, most of it via the conversion of a capital loan, and another via a classic treasury injection.
Counting losses of €627 million to September (the latest figures available), TAP will have a positive own capital of €506 million, a sufficient amount to meet the losses over the last three months of 2021, and any new debts.
A source told ECO that the company therefore did close 2021 in the black, but did not specify by how much.