TAM S.A. 2nd Quarter Results Announcement
August 10 2007 - 9:00AM
PR Newswire (US)
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
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