Cape Verde's government has backed the national airline, Transportes Aéreos de Cabo Verde (TACV), with a €4.7 million guarantee to support its ongoing financial restructuring. This move is part of the airline's 2023-2027 Interim Business Plan, which aims to stabilize operations following recent financial losses and industry challenges.
Previously focused solely on international routes, TACV was tasked with handling domestic flights after the collapse of the BestFly concession in 2024. Official reports indicate that TACV recorded a net loss of €6.1 million in the third quarter of 2024. Despite strong operational performance and growth potential, high operating expenses, especially leasing costs, have posed profitability challenges.
The government has emphasized the importance of cautious dependence on low-cost carriers for international connectivity, given the archipelago's significant diaspora. The loan guarantee allows TACV to extend loan maturities and bolster its financial stability, which is crucial as the airline navigates a competitive market while expanding its role domestically.
This strategic support aims to ensure connectivity across the islands, maintain employment, and foster economic development through reliable air transport services. Authorities continue to monitor the airline's financial health and market position, seeking to ensure long-term sustainability in the national aviation sector.
