TAP - comment

Half Year results this morning confirmed the company’s stronger than modelled recovery. Recovery in particular also beat most European rivals as TAP have no operations flying to Asia, where lockdowns continue to disrupt business. Nevertheless, TAP remain only 50% hedged on fuel prices, which this year should be an expensive deviation from industry standard. We expect a €200m headwind in H2 relative to our figures, although if recovery continues at this pace this should be made up by further outperformance on the top line. We will update in due course, but the conclusion is largely foregone.