LISBON (Reuters – Portugal’s ailing state airline TAP posted Monday a loss in its annual financial report of 1.6 billion euro ($1.74 billion). This was due to closing Brazil’s aircraft maintenance operation and devaluation of the Euro against the Dollar.

This airline is controlled 72.5% by Portugal and is subject to a Brussels-approved rescue program worth 3.2 billion Euros. It was required to decrease its fleet size and cut over 2,900 jobs as well as reduce the wages.

TAP also had to shut down its Brazilian aircraft maintenance business, representing a non-recurring loss in excess of 1.025 Billion Euros, as part of the restructuring plan.

The COVID-19 pandemic caused a loss of revenue for the airline in 2020.

Last year, the company carried 5.83 million passengers, an increase of 25% over 2020 but still 34% below its pre-pandemic levels in 2019.

($1 = 0.9170 euros)