( CNN ) -- As Portugal battles to repay its bailout , one of the country 's airline executives has warned of the dangers of uncertainty in a region desperate to regain its economic footing . The concerns of Fernando Pinto , chief executive officer of TAP Air Portugal , are being voiced as Portugal 's economic conditions remain fragile , with one OECD economist saying the country 's pain is `` not over yet . '' Pinto told CNN people need to `` trust in an airline the same way that they trust in the area where we operate , and Europe is very important . '' Read more : Deputy PM : Turkey 'inspiration ' for Islam and democracy . Pinto pointed to the panicked Cyprus bailout as an example of the uncertainty undermining Europe 's recovery . `` Things like what happened in Cyprus really concern us , '' he said . Constant quarrelling between debt-ridden nations and creditors has destabilized Europe , and this month the eye of the debt crisis focused on Portugal . Watch more : Portugal 's textile industry stitches itself together . Last week , finance ministers of the single currency area agreed to give Portugal and Ireland seven more years to repay their bailout loans . Portugal 's government , led by Prime Minister Pedro Passos Coelho , is struggling to plug a 1.3 billion euro ( $ 1.7 billion ) gap in public finances after the country 's constitutional court rejected further cuts to state pensions and public sector wages , amounting to 0.8 % of the Portugal 's output . Read more : Finnish PM : Eurozone nations must follow the rules . The center-right coalition government must find the cuts to meet the demands of international creditors and receive the next tranche of its 78 billion euro bailout . Portugal is one of five countries -- along with Ireland , Greece , Spain and Cyprus -- to request rescue funds from the troika , made up of the European Commission , the European Central Bank and the International Monetary Fund . Read more : GE Europe chief eyes investment in Germany . Jens Arnold , a senior economist on Portugal at the Organization for Economic Cooperation and Development , told CNN that the country was on track with its austerity program but risks of political instability and stagnating growth remained . `` We see no risk of default or of leaving the eurozone . Our impression is that Portugal is making substantial progress , '' Arnold said . `` Investor confidence is improving , '' he added . The government has , as part of its drive to balance the books , investigated plans to privatize TAP Air Portugal . However last year 's talks stalled after the sole bidder , Brazil-based Synergy Aerospace , failed to provide financial guarantees , according to the Portuguese Treasury . In 2012 , the Lisbon-based airline had net profit of 15.9 million euros as the company increased its number of passengers and at reduced its total debt by 21 % Pinto said . `` To survive these days , you have to be careful with costs and we are number one in costs , '' Pinto said . Regulatory red tape , however , is a source of frustration for Pinto . The European Commission 's long-held plans for a `` Single European Sky '' have been `` very slow , '' according to the chief executive . `` We 've been over-regulated , '' he added . Although European airlines benefit from operating in a free market , they are feeling `` unloved '' by regulators in contrast to other markets where aviation is central to driving economic growth , according to Graham Dunn , managing editor of Airline Business . He told CNN that high tax burdens and a crunch in future airport capacity are to blame for the tough growth climate for European airlines . Domestically , Pinto said Portugal 's unemployment is TAP 's `` biggest concern . '' He added : `` We are one of the biggest employers but of course as I said we depend on the economy here . '' The southern European country is grappling with unemployment at 17.5 % while the economy is forecast to contract by 1.9 % for 2013 , according to Europe 's statistics office Eurostat . According to Arnold , unemployment `` is very high and will probably remain high over this and the next year . '' For Portugal , he said , `` the worst -- in terms of the social cost of the adjustment -- is unfortunately not over yet . ''
One of Portugal 's airline captains has warned of the dangers of uncertainty in Lisbon . The comments from Fernando Pinto , head of TAP Air Portugal , come as Portugal 's economy is fragile . Finance ministers of the euro area have given Portugal and Ireland seven more years to repay debt . But one economist says for Portugal , the worst ` ` not over yet ''