According to the annual consolidated financial results announced on April 3, 2008, in Lisbon, the Company led by Fernando Pinto also increased in 160 per cent its operating result , up to 79.3 million EUR in 2007, against the 30.3 million EUR operating result in 2006.

These results now confirm, not only the recovery of the Portuguese flag carrier, which in the year 2000 had posted a (122) million Euro loss, but prove as well its viability as a sound company. Having returned to profit in 2003, TAP has been able to consolidate three years afterwards, thus entering in 2006 a new stage of sustainable profitability growth.

For that matter, TAP had practically doubled its size by 2007 year-end when compared to 2000, considering its supply has grown some 98 per cent within this period.

According to its annual consolidated Report today made public at the Company Headquarters, TAP increased in 2007 its operating revenue to 1,920 million EUR, which translates into 16 per cent more, year on year (1,654 M Euro in 2006).

The EBITDAR also progressed favourably, surpassing 250 million EUR last year and increasing by 36.2 per cent the 183.6 M EUR posted in 2006.

Overall operating costs grew 13.6 per cent, from 1,470 million EUR in 2006 to 1,669 M EUR last year, while the operating revenue rose to 1,581 million EUR, showing an 18.2 per cent increase year on year (1,337 M EUR in 2006).

The Maintenance & Engineering Business Unit reported around 127.9 million EUR revenue, which was largely due to the assistance provided to third party customers and shows an 8.8 per cent increase over the 117.6 million EUR posted in previous year.

The Cargo & Mail Division had likewise a positive performance, with its revenue increasing 4.9 per cent, from 102 million (in 2006) to 107 million EUR last year.

In 2007, TAP strengthened its positioning as one of the Portuguese top exporting companies, with the sales revenue produced by the carrier’s external markets rising to 1,220 million EUR, which means an increase of 15.3 per cent on previous year (1,059 M EUR in 2006).

Therefore, as much as 66 per cent out of TAP total revenue in 2007 were generated outside Portugal – the company’s home-market. Sales within Portugal alone also grew 6.9 per cent, thus TAP increasing its share from 48 to 50 per cent in the home-market.

Thereby, TAP significantly boosted its role as a major player within the Portuguese national economy, with an outstanding contribution given to the continuing development of Tourism by means of the increase in traffic flows incoming Portugal from all destinations in TAP network.

As a matter of fact, TAP reported in 2007 the largest number of traffic ever carried in its system-wide network, reaching 7.8 million passengers, with a 13 per cent increase year on year. Looking into the company’s different network sectors, TAP carried: 4,546 million passengers in Europe (+14.9%); 1,633 million in domestic routes (+5.9%); 1,020 million in Brazil (+17.1%); 442,000 in Africa (+13.7%); 192,000 in the USA (+9.8%) and 95,000 (+3.5%) in Central Atlantic (Venezuela).

As major highlights of the year 2007, mention is to be made to the acquisition of PGA along with the purchase and phase-in of five new A330 and two A319  aircraft.

About TAP Portugal:
TAP Portugal is the leading Portuguese airline, member of Star Alliance since March 14, 2005. Its hub in Lisbon is a key European gateway at the crossroads of Africa, North & South America, where TAP stands out as the leading European carrier in operation to Brazil. The company’s network comprises 58 destinations in 25 countries worldwide. TAP currently operates over 1,850 weekly flights in average on a modern fleet of 52 Airbus aircraft, to which add 16 more aircraft operating in PGA, the European regional carrier acquired by TAP in 2007. Pursuing its customer focused orientation, TAP continuously strives to deliver safe, reliable and upgraded product & services tailored to meet customers’ expectations. Retaining the Portuguese character of the Company’s brand and quality service as the basic concept has been the main driver of TAP strategy in most recent years.

About Star Alliance:
The Star Alliance network was established in 1997 as the first truly global airline alliance to offer customers worldwide reach and a smooth travel experience. Star Alliance received the Air Transport World Market Leadership Award in 2008 and was voted Best Airline Alliance by Business Traveller Magazine in 2003, 2006 and 2007 and by Skytrax in 2003, 2005 and 2007. The members are Air Canada, Air China, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Shanghai Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, Turkish Airlines, THAI, United and US Airways. Regional member carriers Adria Airways (Slovenia), Blue1 (Finland) and Croatia Airlines enhance the global network. Air India and EgyptAir have been accepted as future members. Overall, the Star Alliance network offers nearly 18,000 daily flights to 965 destinations in 162 countries.