American Airlines and TAM continue to expand US-Brazil as other markets show signs of weakness

American Airlines and Brazilian carrier TAM are taking full advantage of a phased-in open skies agreement between the US and Brazil to significantly expand into new and existing markets between the two countries. US expansion into Latin America is generally a safer investment at the moment as Europe's economy remains tenuous, which is driving a slowdown in international traffic to/from Europe. While Brazil's economy is showing some signs of slowing, the market is still performing far better than Europe and launching new service and strengthening existing routes between the US and Brazil is key for American and TAM as they work to be the airlines of choice for the upcoming surge in passenger traffic ushered in by the 2014 FIFA World Cup followed and by the 2016 Summer Olympics.

Europe's economic uncertainty and an attempt to better manage seasonal capacity to maximise profitability are forces behind the recent cuts by US carriers to their European networks.