São Paulo – Brazilian airline TAM posted an operating profit of 725.2 million reals (US$ 311.2 million) last year. The figure represents growth of 67.3% over the 433.5 million reals (US$ 186 million) recorded in 2007, according to information disclosed by the company today (31st). Gross operating revenues went from 8.5 billion reals (US$ 3.6 billion) to 11 billion reals (US$ 4.7 billion), growth of 29.9%.
The company, however, posted net losses of 1.4 billion reals (US$ 600.9 million). According to a press release issued by TAM, the result was prompted by losses with non-speculative hedging operations for fuel and by the depreciation of the Brazilian real against the dollar. In the previous year, the company posted a net profit of 505 million reals (US$ 216.7 million).
"We achieved excellent operating results last year and our cash reserves are quite robust. The year of 2009 is surely a challenging one, however we believe in the recovery of the market towards the end of the year, and will be well positioned to cater to it," says David Barioni Neto, president of TAM.
The company’s average market share was 50.3% last year, according to figures supplied by the National Civil Aviation Agency. A total of 25.6 million passengers were transported, growth of 6.1%. Average seat occupancy rate in domestic flights was 68.1%.
The company also increased its share among Brazilian airlines that fly to foreign countries, having answered to an average of 75.24% of travellers. TAM transported 4.5 million passengers in international trips in 2008, growth of 22.4%.
*Translated by Gabriel Pomerancblum
