SAO PAULO, Brazil, Aug. 10 /PRNewswire-FirstCall/ -- TAM S.A. (BOVESPA: TAMM4, NYSE: TAM), reports its second quarter results for 2007 (2Q07). Operational and financial data, except where otherwise indicated, are presented based on amounts consolidated in Reais (R$) and prepared in accordance with accounting principles generally accepted in Brazil (BR GAAP). (Logo: http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO ) Operational Performance Domestic Operations -- TAM reached 49.6% average market share in 2Q07. -- ASKs (capacity) increased 26.1% in 2Q07 as a result of the increase in the operating fleet (20 A320 and 2 A319, vs 5 F100 returned and other 5 in redelivery) and the increase in block hours by aircraft from 12.0 hours/day to 12.6 hours/day (total operation). -- RPKs (demand) increased 21.5% in 2Q07 compared to 2Q06. -- TAM's domestic load factor decreased to 72.3% in 2Q07, compared to 75.0% in 2Q06. -- We operated with the best operational efficiency performance, between the largest companies, in the domestic market with 65% for 2Q07 -- 10 p.p. above the market average. International Operations -- TAM reached 70.8% average market share in 2Q07. -- ASKs (capacity) increased 97.5% in 2Q07, due to the increase of three A330 and three MD11 into our international operating fleet allowing the beginning of daily flights to London and Milan, the second daily frequencies to New York and the third daily flight to Paris by adding, the inclusion of two daily flights to Santiago, the start of daily frequency to Cordoba and the increase in the operations to Buenos Aires. -- RPKs (demand) increased 82.7% comparing 2Q07 with 2Q06. -- TAM's international load factor decreased 5.6 p.p. to 69.0% in 2Q07 compared to 74.6% in 2Q06. -- We operated with 66% operational efficiency in the international market (2Q07), 10 p.p. above the market average. Financial Performance -- Total CASK decreased by 11.6% in 2Q07 compared to 2Q06. -- EBIT and EBITDAR margins of 1.7% and 12.8% respectively. -- Net loss of R$ 28.6 million, a negative margin of 1.5%. -- Our total cash and cash equivalents equaled R$2,511 million Highlights -- 7.2 million passengers transported - an increase of 19% vs. 2Q06 -- Increase in block hours/day per aircraft from 12.0 to 12.6 -- 20 new A320, 3 A330, 2 A319 and 3 MD11; 5 F100 returned 2Q07 vs. 2Q06 -- Gross Revenues of R$2.1 billion, an increase of 12.6% -- New domestic flight to Criciuma (Brazil) -- New international flights to Caracas (Venezuela); direct flight between Salvador and Paris; beginning of operations to Montevideo (Uruguay) -- Announcement of full code share alliances with United Airlines, Lufthansa, LAN and TAP -- Partnership with Caixa Economica Federal to allow passengers to pay for airline tickets at lottery ticket outlets -- New payment methods for airfares -- Announcement of acquisition of four additional B777-300ER through the exercise of options, increasing the Boeing fleet to 8 aircraft -- Announcement of the acquisition of 22 Airbus A350 XWBs plus 10 more options and the confirmation of four options of A330 -- Inauguration of technological condominium in Sao Carlos: Goodrich will be the first company installed in the area -- Our Return on Equity (ROE) was 25.7% -- Our Return on Assets (ROA) was 7.3% For further information, download the press release, at the Company's website: http://www.tam.com.br/ri About TAM: TAM (http://www.tam.com.br/) has been the leader in the Brazilian domestic market for four years, and held a 50.6% domestic market share and 64.3% international market share at the end of July 2007. TAM operates regular flights to 49 destinations throughout Brazil. It serves 76 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. Currently, the program has over 4.0 million subscribers and has awarded more than 4.3 million tickets. Forward-looking statement: This notice may contain estimates for future events. These estimates merely reflect the expectations of the company's management and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained herein. These estimates are subject to changes without prior notice. http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO http://photoarchive.ap.org/ DATASOURCE: TAM S.A. CONTACT: Libano Miranda Barroso, CFO; Cristina Betts, Dir. Corporate Planning and Controlling; Roberta Noronha, Manager Investor Relations; Jorge Helito, Investor Relations Analyst; Andre Ferreira, Investor Relations Analyst, all of TAM S.A., +55-11-5582-9715, or fax, +55-11-5582-8149, or Web site: http://www.tam.com.br/ http://www.tam.com.br/ri

Copyright