The airline plans to raise ticket costs due to rising fuel costs, according to Jornal de Notícias. In a report presented this week, TAP states that the impact of fuel costs will be “partially mitigated” through measures such as cost control, operational capacity, management, and pricing changes.

Tickets may become more expensive

TAP admits to passing on part of the increased costs directly to passenger airfares, continuing that the international aviation sector is heavily impacted by the consequences of tensions in the Middle East.

In a statement released with the quarterly results, the company, led by Luís Rodrigues, states that the company “will continue to focus on operational efficiency and financial discipline.” TAP also states that it intends to maintain the quality of its revenue and control the financial impact caused by the volatility of fuel prices.

Concurrently, the partial privatisation of TAP Air Portugal is underway, with the Government intending to sell up to 49.9 percent of the company’s capital.

International groups in the European aviation sector are running to acquire a stake in TAP, with Air France-KLM and Lufthansa reportedly being among the interested buyers, Jornal de Notícias reports.

The timetable set by the Executive of TAP Air Portugal states that binding proposals must be submitted before August, with this phase considered especially crucial for the airline’s future shareholders.

The Ministry of Infrastructure has monitored the privatisation process closely, as TAP is considered a strategic asset for the country’s air connectivity and for Portugal’s international flights.