In an operational update for the first half of 2020, TAP Portugal disclosed that the airline was taking a series of actions to mitigate the adverse impact of the COVID-19 pandemic as well as preserving cash. As well as reducing non-critical capital expenditure (capex) and a freeze on hiring and temporary unpaid employee leave.
These measures have also included deferring payment and adjusting lease rentals by negotiation with lessors. The airline also confirmed that has agreed to defer 15 deliveries from Airbus, reducing CAPEX in the years 2020-2022 by US$1bn. TAP will take just one A320neo family aircraft in 2020 rather than the six planned, with five rather than seven expected now in 2021 and two rather than eight in 2022. The remainder of the deliveries originally planned for 2021 and 2022 are now postponed to between 2025 and 2027. The two A330neo planned for delivery in 2022 have been postponed to 2024, with TAP retaining the option to exchange these aircraft for other models.
TAP has also emphasised its pivot to increase its cargo business since TAP AirCargo posted a 32% increase in yield during H12020. Charter flights are responsible for 27% of TAP Air Cargo’s operating revenue in the reporting period, which TAP says has partially offset the decrease in revenue from belly freight in passenger flights. The airline has converted two A330neos into cargo-only aircraft by removing economy class seats.