TAM posted second-quarter net income of BRL50.2 million ($31.1 million), reversed from a BRL28.6 million loss in the year-ago period, riding a big boost in the domestic market driven by the replacement of 15 F100s with 13 A320s and three A321s and an expanded international network.
Revenue for the three months ended June 30 increased 27.7% to BRL2.51 billion including a 30.8% jump in domestic passenger revenue to BRL1.53 billion as it took advantage of bigger, more efficient new aircraft and raised fares. Expenses grew 26.4% to BRL2.45 billion including a 54.2% leap in fuel costs to BRL988.6 million. Operating profit was BRL67.1 million, more than double the BRL33 million last year.
Traffic increased 15.5% to 9.62 billion RPKs on a 16.5% lift in capacity to 13.67 billion ASKs, producing a load factor of 70.4%, down 0.6 point. Yield rose 10.3% to BRL27.17 cents as RASK increased 9.5% to BRL18.4 cents and CASK lifted 8.6% to BRL17.58 cents.
TAM said it plans to continue to grow its international network, filling a void left by the former Varig's retreat to South America under Gol's ownership. TAM started service to Madrid, Frankfurt, Caracas and Montevideo at the end of 2007.