TAM profits down in 1Q2012. Cuts FY2012 domestic capacity

TAM revenue up 6% - financial highlights for three months ended 31-Mar-2012:

• Revenue: BRL3229 million (USD1828 million), +6.1% year-on-year;
• Operating costs: BRL3252 million (USD1841 million), +10.9%;
  • Fuel: BRL1267 million (USD717.1 million), +19.8%;
  • Labour: BRL698.4 million (USD395.4 million), +3.3%;
• EBIT (loss): (BRL23.5 million) (USD13.3 million), compared to a profit of BRL110.2 million (USD62.4 million) in p-c-p;
• Operating profit: BRL30.8 million (USD17.4 million), -81.4%;
• Net profit: BRL100.9 million (USD57.1 million), -21.7%;
• Passenger numbers: 9.1 million, -1.7%;
• Load factor: 73.5%, -0.4 ppt;
  • Domestic: 68.1%, -2.3 ppts;
  • International: 82.5%, +2.9 ppts;
• Breakeven load factor: 74.0%, +2.8 ppts;
• Total yield: BRL 23.1 cents (USD 13.1 cents), +2.7%;
  • Domestic: BRL 18.1 cents (USD10.2 cents), -0.8%;
  • International: BRL 17.5 cents (USD 9.9 cents), +18.8%;
• Total revenue per ASK: BRL 16.3 cents (USD 9.2 cents), +2.2%;
  • Domestic: BRL 11.8 cents (USD 6.7 cents), -3.8%;
  • International: BRL 14.5 cents (USD 8.2 cents), +23.2%;
• Cost per ASK: BRL 16.4 cents (USD 9.3 cents), +6.8%;
• Cost per ASK excl fuel: BRL 10.0 cents (USD5.7 cents), +2.0%;
• Total assets: BRL15,744 million (USD89113 million), -1.5% when compared to period ended 31-Dec-2011;
• Cash and cash equivalents: BRL553.6 million (USD313.4 million), -14.8% when compared to period ended 31-Dec-2011;
• Total liabilities: BRL13,526 million (USD7658 million), -2.4% when compared to period ended 31-Dec-2011;
• 2012 forecast:
  • Capacity (ASK): -1% to +1%;
    • Domestic: -2% to stable;
    • International: +1% to +3%;
  • Load factor: 76% to 78%;
    • Domestic: 72% to 74%;
    • International: 83% to 85%. [more - original PR]

*Based on the average conversion rate at USD1 = BRL1.7663

TAM: "We do not expect to open new routes in 2012, but will work for consolidating and increasing the efficiency on existing flights and increase frequencies in some international routes. We expect closing the year with an average load factor of 72% to 74% on the domestic segment and 83% to 85% in the international segment." Source: Company statement, 11-May-2012.