TAM’s net income up by 26pc

Brazilian airline TAM posted a net income of £17.15m in the first quarter of 2009, a 26.16 percent growth over the same period last year.

Published: 08 May 2009

Brazilian airline TAM posted a net income of £17.15m in the first quarter of 2009, a 26.16 percent growth over the same period last year.

TAM’s operating income increased 129 percent in the first quarter, reaching 62.1m in the first three months of 2009. The EBIT margin was 7.5 percent in the first quarter against 3.8 percent in 2008.

TAM carried three percent fewer passengers in the first three months of 2009: 7.3 million passengers compared to 7.5 million in the first quarter of 2008.

Despite the decrease in passenger numbers, positive results were driven by an increase in flight revenues (9.2 percent on domestic flights and 29.9 percent on international services), and by a 44.66 percent growth in revenues from other operating sources that increased from £62.61m to £90.57, largely due to an increase in the number of partners involved with TAM’s frequent flyer programme, TAM Fidelidade.

Also contributing to the improved results was a significant reduction of 17.7 percent in fuel costs that fell from R$ 844.8 million (£266.31m) in the first quarter of 2008 to R$ 695.1 million (£219.12m) in the first quarter of 2009.

TAM closed the first quarter of 2009 with an average market share of 49.5 percent in the domestic Brazilian market and an 85.5 percent international market share among Brazilian airline companies.

According to the 2009 forecasts announced on 31 March 2009, TAM expected a demand growth (in RPK – Revenue Passenger Kilometre) in the domestic Brazilian market of between one and five percent. The demand actually increased by 5.1 percent .

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