Passenger air transport revenue in Portugal 2010-2022
Over the years, tourism has flourished in Portugal. This usually augurs well for the air transport industry. However, such has not been the case in Portugal, with revenues of its air transport industry declining from 4.4 billion U.S. dollars in 2014 to 4 billion U.S. dollars in 2019. This can be attributed to the rising ticket prices, owing to the increasing fuel prices, which has affected the demand. Consumers are increasingly turning towards other alternatives such as cruise travel. In fact, as of 2019, the port of Lisbon was one of the busiest ports in all of Europe, recording a total of 571,000 cruise passengers. A declining trend can also be witnessed in the country’s air freight transport industry.
The short to medium term does not augur well for the sector either, as the outbreak of the corona virus has severely impacted the aviation industry. With the government announcing a nationwide lockdown, all international flights outside of the EU have been banned for an indefinite period of time. The country’s flagship carrier, TAP airlines, which was already in financial turmoil after reporting a net loss of 106 million euros in 2019, has been severely affected as majority of its flights have been grounded. In order to mitigate the loss, the government has announced a package worth 1.2 billion euros for the carrier.
The short to medium term does not augur well for the sector either, as the outbreak of the corona virus has severely impacted the aviation industry. With the government announcing a nationwide lockdown, all international flights outside of the EU have been banned for an indefinite period of time. The country’s flagship carrier, TAP airlines, which was already in financial turmoil after reporting a net loss of 106 million euros in 2019, has been severely affected as majority of its flights have been grounded. In order to mitigate the loss, the government has announced a package worth 1.2 billion euros for the carrier.
