The airline which was privatised late last year, believes that it could still end the year with positive results, arguing that it has already cut losses by 74 percent on last year.
New routes to the United States, a strong showing so far in the summer season and an increase in bookings for the festive season have led the company to forecast that it could reverse the 100 million euros in losses recorded in 2015, and post a profit for the current year.
The airline has also managed to secure additional savings from lower oil prices, which has allowed it to employ more aggressive pricing structures for long-haul flights without cutting the profitability of these routes.
The focus on the United States, with flights to New York, Boston and Miami currently on sale, seems to be the focus of TAP’s aims to return to profits.
In order to boost this market further, TAP last month unveiled its ‘Stopover’ programme which aims to offer long-haul passengers travelling with the airline from the Americas, cheaper prices on flights and accommodation for stopovers of up to three days in Portugal.
The offer is available mainly to Americans and Brazilians with connecting flights in Portugal, who would like to spend a few days in this country as opposed to a few hours in transit at Lisbon or Porto airport.
Deals have already been secured with a number of partners to ensure discounted prices can be offered to those passengers.
TAP CEO Fernando Pinto said: “In total we have gathered, in record time, 150 partners just to launch the programme. This is unheard of.
“Lisbon airport, and also Porto airport, to a lesser extent, has a high number of long-haul passengers, mainly from the US and Brazil, whose final destination is not Portugal, so Stopover aims to entice those passengers to stay between one and three nights in Lisbon and Porto and they also have access to offers from 150 partners”, he explained.
The airline currently operates 30 flights a week between Portugal and the US.
Speaking to economic online journal Dinheiro Vivo, David Neelman, co-owner of TAP following its privatisation, said: “People need an incentive to fly with us, and now we are giving it to them. There is no other company in Europe, with the exception of Icelandic Air, that offers a Stopover programme. Air France doesn’t have one, Lufthansa doesn’t have one.”
He added that while high season is not a main concern, as flights are full, low season is.
“I’m not worried about high season, I’m concerned with low season. That’s when we need incentives. Because as soon as people get to know Portugal they’ll want to come back”; he stressed.
Through the programme, the airline aims to bring over one million clients from the US to Portugal over the next three years, equating to a potential financial impact of around €150 million, and half a million new visitors to Lisbon and Porto.
In 2017, it hopes Stopover will lure an extra 150,000 visitors to the country.
Research by TAP shows that a US tourist spends on average €2,500 during a trip to Portugal.