TAM forecasts traffic growth of 15-18%; capacity growth of 10-13% in 2011

TAM announced (25-Jan-2011) the following guidance for 2011:

• Domestic demand growth (RPKs): 15-18%;
• Supply growth (ASKs): 10-13%;
  • Domestic: 10-14%;
  • International: 10%;
• Load factor: 73-75%;
  • Domestic: 67.5% to 70%;
  • International: 83%
• New international frequency or destination: 2;
• CASK ex fuel: -5%;
• Average WTI: USD93;
• Average US Dollar rate: BRL1.78;
• Fleet: The carrier will add seven aircraft - two A330s, two A321s and three A319s. [more]

TAM: "Historically, growth in demand from Brazilian domestic aviation market has a strong correlation and elasticity with the country's growth of about three times the GDP growth. In 2010 we observed a modification in the passenger's profile, with the migration of travellers from buses to the airlines, especially on travels above 800km. In line with this trend, still in 2010 we started our retail project, because we believe that much of the growth next years will come from middle-class Brazilians that will fly for the first time. 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%," Company Statement, 25-Jan-2011.