TAP CEO says Africa, Brazil to boost growth

LISBON (Reuters) - TAP Air Portugal TAPA.UL is eyeing new routes in Africa and Brazil that could fuel the state-controlled airline's future growth, Chief Executive Officer Fernando Pinto said on Monday.

Pinto, who is working with the Portuguese government to privatize the airline, told the Reuters Latin America Investment Summit he had no plans to carry out any acquisitions following the purchase of smaller local rival Portugalia in 2007.

"As of today, no decision has been taken about the creation of a new destination in Africa, but Africa is strategic to us and so is Brazil," he said. "Africa can become a great source of growth for TAP."

TAP, which operates 66 weekly flights to Brazil and 41 flights to Africa, recently appointed a new business director to study the airline's business strategy in Africa, he said. TAP is a member of Star Alliance, the world's largest airline alliance.

In 2007, TAP's net profit more than tripled to 32.8 million euros and revenues rose 16.1 percent to 1.9 billion euros ($2.99 billion) despite record-high oil prices.

Pinto said the rise in oil prices above $100 a barrel would not stand in the way of TAP's 64 million euro net profit target for 2008.

"Our estimate for the price of oil in 2008 was $75-78 a barrel but we are already re-evaluating that to see if it will continue to rise," he said.

TAP expects to spend 500 million euros on filling up its airplanes with fuel this year, up from 420 million in 2007. Pinto said he planned to use biofuel in the future but that such an option was not yet viable.

TAP's recent purchase of six airplanes for 460 million euros will also enable Portugal's leading airline to increase the number of routes and passengers it transports to Europe, Brazil and Africa, he said.

"TAP's main investment this year are the six airplanes," he said.

(Reporting by Patricia Rua, writing by Henrique Almeida; Editing by Andrew Hurst)