Over €640 Million in Passenger Credit Held by Tap Air Portugal
Such conclusions have been reached through the recent report conducted by Online Economy (ECO), AtoZSerwisPlus.pt reports.
ECO’s report shows that even though the amount registered in the pending flight documents, as called by TAP, is lower than €657.7 million recorded at the end of June, it was considered a relevant matter by the auditor and also the subject of a note.
In this regard, PwC firms that collaborate with organizations and individuals to provide quality services in auditing, consulting, and taxation through the recent report show that the situation is mainly the result of the Coronviaurs.
“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,” PwC recalls.
Cancellations as a result of the obligation to provide the service in the future or a commitment in order to reimburse the value of the ticket accounted for a total of €643.6 million at the end of December, or 41.6 million more than in 2020.
Of the total, 438 .69 million relate to tickets not flown, while 203.9 million to vouchers, as reported by Portugal News.
“In the 2020 financial year, the board of directors reviewed the policy for the use of pending flight documents, namely concerning the possibility of rebooking tickets at no additional cost and the reimbursement of tickets in vouchers with an increase and extended expiry dates,” TAP points out in its report.
Such a decision as well as the cancellation of trips due to the Coronavirus situation, resulted in an increase in registered responsibilities.
The European Commission previously approved a total of €71.4 million aid measure in order to help Portugal’s flag carrier, TAP Air Portugal, recover from the damages caused by the virus from January 1 until June 30, 2021; as a result of the restrictions and other measures taken in order to halt the spread of the Coronavirus.
