"To state that the cost is the reason for the first quarter results being worse seems dangerous to me, and it seems to me that it would be more appropriate to state that the investment made in company agreements, in staff, was an investment that will bring positive results in the future, but that at this moment are an investment and not a cost", defended the president of SNPVAC, Ricardo Penarróias, in statements to the Lusa agency.

The union leader recalled that in the previous presentation of results, TAP's management had already mentioned costs with workers, an expression that the union considers dangerous.

"The company agreements that were negotiated are, in fact, an investment that the company is making, it is an investment that the workers have deposited in the company to allow not only an improvement in their quality of life, but also [...] measures that allow the company to grow", highlighted Ricardo Penarróias.

The new company agreements, negotiated with all the trade unions representing TAP workers, put an end to the salary cuts applied under the emergency agreements, when the airline ran into difficulties due to the covid-19 pandemic, to enable the execution of a restructuring plan.

The president of SNPVAC pointed out that the impact of the new agreements on TAP's financial results was expected, because they started to be applied in the first quarter.

"It is this investment that the company has made that will allow it to grow, to be stronger at European level, stronger in the market and, above all, to ensure that the IATA summer [from March to October] is carried out with social peace and brings the positive results that it already brought last year", stressed the unionist.

In a statement, the airline reported today a loss of 71.9 million euros, between January and March, having decreased by 14.5 million compared to the first quarter of 2023.

TAP stated that recurring operating costs reached 905.2 million euros, an increase of 7% (more 59.1 million) compared to the first three months of 2023, and that this variation results mainly from the increase in personnel costs (+70.5 million or 56.9%) due to the new company agreements, "counterbalanced by the reduction in fuel costs (-23.6 million) due to a lower price of jet fuel".

In the same note, TAP's CEO, Luís Rodrigues, considered that the company continued the "structural transformation process" that was required.

"The investment in our people, including the end of salary cuts, corrections for high inflation and the new company agreements have an immediate impact on the result, but the benefits will continue to materialise over time", added the carrier's leader.

Read Also: TAP registers losses of 71.9 million euros in the 1st quarter (Portuguese version)