TAM revenue down 12.9%, operating profit halved in 4Q2009

TAM revenue down 12.9% - financial highlights (according to Brazilian GAAP):

• Three months ended 31-Dec-2009:
  • Operating revenue: USD1,428 million, -12.9% year-on-year;
  • Operating cost: USD1,351 million, -8.0%;
    • Fuel: USD406.9 million, -26.8%;
    • Labour: USD265.0 million, -8.1%;
  • Operating profit: USD77.1 million, -55.2%;
  • Net profit: USD80.8 million, compared to a loss of USD689.9 million in the previous corresponding period;
  • Passenger numbers: 8.3 million, +12.7%;
  • Load factor: 71.4%, +3.1 ppts;
    • Domestic: 68.8%, +3.3 ppts;
    • International: 75.5%, +2.9 ppts;
  • Breakeven load factor: 67.6%, +6.4 ppts;
  • Total revenue per ASK: USD 8.53 cents, -21.0%;
    • Domestic scheduled: USD 7.52 cents, -21.2%;
    • International scheduled: USD 5.50 cents, -25.9%;
  • Total yield**: USD 12.41 cents, -24.4%;
    • Domestic scheduled: USD 11.62 cents, -25.3%;
    • International scheduled: USD 7.30 cents, -28.7%;
  • Cost per ASK: USD 8.08 cents, -16.5%;
  • Cost per ASK excl fuel: USD 5.61 cents, -6.0%;
• 12 months ended 31-Dec-2009:
  • Operating revenue: USD5.557 million, -6.5%;
  • Operating cost: USD5,369 million, -3.3%;
  • • Fuel: USD1,539 million, -30.2%;
    • Labour: USD1,114 million, +11.4%;
  • Operating profit: USD188.6 million, -51.8%;
  • Net profit: USD753.6 million, compared to a loss of USD847.4 million in the previous corresponding period;
  • Passenger numbers: 30.4 million, +0.9%;
  • Load factor: 68.2%, -2.8 ppts;
  • Breakeven load factor: 65.9%, -0.4 ppt;
  • Total revenue per ASK: USD 8.59 cents, -17.5%;
    • Domestic scheduled: USD 7.52 cents, -21.5%;
    • International scheduled: USD 5.78 cents, -19.1%;
  • Total yield**: USD 13.08 cents, -14.2%;
    • Domestic scheduled: USD 12.29 cents, -18.0%;
    • International scheduled: USD 7.97 cents, -15.6%;
  • Cost per ASK: USD 8.31 cents, -14.7%;
  • Cost per ASK excl fuel: USD 5.89 cents, +0.9%;
• 2010 Forecast:
  • Passenger traffic (RPKs): +14% to +18%;
  • Capacity (ASKs): +12%;
    • Domestic: 14%;
    • International: +8%;
  • Load factor: 69%;
    • Domestic: 66%;
    • International: 75%;
  • Cost per ASK excl fuel: -6%. [more]

*Based on the conversion rate at USD1 = BRL1.7815

**Includes revenues from flights, cargo and others

TAM: "We are confident and believe that the market will continue growing in 2010. We believe that domestic demand will growth around 14% and 18%, and accordingly we will raise our offer by increasing the utilization of aircraft and growing fleet. The growth in the international market offer will be by the increase of two Airbus aircrafts A330 that during the first half of 2010 will be used on charter flights and after that for two new frequency or international destination that will be announced soon. We believe that with the increased of aircraft utilization, a stable dollar rate and our efforts to reduce costs, we will be able to reduce our CASK excluding fuel by 6%," Company statement. Source: TAM, 31-Mar-2010.