According to a report by ECO, the amount is lower than the 657.7 million registered at the end of June, but it was considered a relevant matter by the auditor and the subject of a note. PwC recalls that “following the impacts of the COVID-19 pandemic on the air transport sector, the [TAP] group suffered a significant reduction in its activity in 2020 and 2021, as a result of a sharp drop in demand and the imposition of restrictions government agencies to air circulation, which led to the cancellation of several flights”.

Cancellations that generated an obligation to provide the service in the future or an obligation to reimburse the value of the ticket, accounted for 643.6 million at the end of December, 41.6 million more than in 2020. Of that total, 438 .69 million relate to tickets not flown and 203.9 million to vouchers.

TAP recalls in its report and accounts that “in the 2020 financial year, the board of directors reviewed the policy for the use of pending flight documents, namely with regard to the possibility of rebooking tickets at no additional cost and the reimbursement of tickets in vouchers with an increase and extended expiry dates”. A decision that, combined with the cancellation of trips due to the Covid-19 pandemic, resulted in an increase in registered responsibilities.

Air miles

The auditor underlines that there are still credits associated with the “TAP Miles&Go” program: “the liability associated with the customer loyalty program, as at 31 December 2021, amounts to 41 million euros“. They also recall that in 2020 the group “chose to extend the validity of miles awarded to customers by 12 months, having updated, accordingly, the assumptions associated with the calculation of this estimate”.

PwC emphasizes the report and accounts, where it draws attention to the factors of uncertainty that may have a material impact on the future operational activity of Grupo TAP SA, namely the conditions of approval of the restructuring plan by the European Commission, future monitoring by on the part of the European Commission regarding its compliance, the impacts of the evolution of the Covid-19 pandemic and the conflict in Ukraine on the air transport sector.

On Monday, the 11th, TAP presented an increase in losses to 1,599.1 million euros in 2021, exceeding 1,230 million in 2020. A figure that is, even so, below the 1,750 million foreseen in the restructuring plan.