TAM 4Q2010 operating profit doubles

TAM revenue up 29% - financial highlights:

• Three months ended 31-Dec-2010:
  • Revenue: USD1939 million, +29.1% year-on-year;
  • Operating costs: USD1808 million, +25.1%;
    • Fuel: USD562.0 million, +28.9%;
    • Labour: USD408.0 million, +43.7%;
  • Operating profit: USD131.2 million, +130.8%;
  • Net profit: USD90.6 million, +7.9%;
  • Passenger numbers: 9.3 million, +12.2%;
  • Load factor: 73.3%, +1.9 ppt;
  • Breakeven load factor: 68.3%, -2.3 ppts;
  • Total revenue per ASK: USD 10.16 cents, +13.4%;
  • Total yield: USD 14.44 cents, +10.5%;
  • Cost per ASK: USD 9.50cents, +9.9%;
  • Cost per ASK excl fuel: USD 6.56 cents, +8.5%;
• 12 months ended 31-Dec-2010:
  • Revenue: USD6744 million, +16.5%;
  • Operating costs: USD6256 million, +8.9%;
    • Fuel: USD2075.8 million, +25.9%;
    • Labour: USD1400 million, +17.3%;
  • Operating profit: USD587.6 million, +365.5%;
  • Net profit: USD383.4 million, -48.9%;
  • Passenger numbers: 34.6 million, +13.6%;
  • Load factor: 71.9%, +3.7 ppts;
  • Breakeven load factor: 68.3%, +1.4 ppt;
  • Total revenue per ASK: USD 9.56 cents, +5.3%;
  • Total yield: USD 13.77 cents, -0.1%;
  • Cost per ASK: USD 8.72 cents, -1.5%;
  • Cost per ASK excl fuel: USD 5.83 cents, -7.7%;
  • Total assets: USD8697 million, +11.7%;
  • Total liabilities: USD7116 million, +1.6%;
• 2011 forecast:
  • Domestic passenger traffic (RPKs): +15% to +18%;
  • Capacity (ASKs): +10% to +13%;
    • Domestic: +10% to +14%;
    • International: +10%;
  • Load factor: 73% to 75%;
    • Domestic: 67.5% to 70%;
    • International: 83%;
  • Cost per Ask excl fuel: -5%. [more]

*Based on the conversion rate at USD1 = BRL1.6626

TAM: "In 2011 the demand shall remain strong, driven by both passengers flying by business purposes, as for the leisure travellers. As a result of the combination of GDP growth and increase of new passengers, we estimate that the domestic market demand will grow between 15% and 18%. Aligned with the demand growth, we will increase our supply by growing our fleet by five aircraft, being two A330s, two A321s, two A319s and one A320, besides the redelivery of two ATR-42. We will also continue to optimise our costs through a healthy utilisation of our aircraft in the domestic market, growing our supply from 10% to 14%. In the international market we will grow 10% with the launch of two new frequencies or destinations," Company statement. Source: TAM, 28-Feb-2011.