Company Watch - TAP Portugal.

For more company news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Sep 4, 2006

TAP Portugal said in a statement yesterday that it is pursuing "potential acquisition [or] shareholder participation" in rival Portugalia Airlines. "The process is in its initial phase and no formal commitment has yet been entered into by the interested parties," the company said. TAP is working with Espirito Santo Financial Group. Sep 1, 2006

TAP Portugal loses [euro]51 million in first half, still sees positive result for year TAP posted a [euro]51 million ($65.2 million) loss in the first six months of 2006, a [euro]3 million improvement compared to a [euro]54 million loss in the year-ago period, and the carrier said its board of directors still hopes to end 2006 "with positive financial results." All other indicators of the company's activity "showed a positive trend," TAP reported, highlighted by a 17% increase in operating revenue to [euro]710 million from the [euro]606 million generated in the first six months of 2005. Expenses climbed 14.8% to [euro]675 million, driven by a 41% rise in fuel costs to [euro]167 million. TAP said unfavorable exchange rates between the US dollar and Brazilian real cost the company [euro]12 million. EBITDAR doubled to [euro]34 million. Operating result was a negative [euro]34 million compared to a negative [euro]39 million in 2005. Sep 1, 2006

TAP Portugal's Air Transport Business Unit saw six-month revenues jump 17% to [euro]573 million while the Cargo Division's turnover rose 24% to [euro]41 million. The Maintenance & Engineering Unit earned [euro]58 million, a 25% year-over-year increase. Passengers grew 3.8% to 3.1 million as load factor remained steady at 70.8%. Sep 1, 2006

TAP Portugal said it will continue serving Venice during its winter schedule beginning Oct. 29, offering daily service from Lisbon. It also will operate daily flights to Bologna and thrice-weekly service to Zagreb. Sep 1, 2006