hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

TAM Doubles 1Q Profit To USD55 Million

Fri May 05, 2006 11:55 pm

TAM reported today that it has doubled its First Quarter 2006 profits to USD55 Million (BRL 111 Million).

The doubling of profits came in the wake of an increase in 20% in domestic demand for tickets. In the First Quarter 2006 TAM has transported 5,55 million pax, an increase of 31.5% compared to 2005.

TAM closed the quarter with a domestic market share of 43.8% as Brazilian number one airline. TAM international market share is of 22.3%.

TAM's healthy results are, however, behind its major oponent GOL Intelligent Airlines which posted a record 1st Quarter 2006 profit of USD 80 million (BRL 160.7 million). http://www.airliners.net/discussions...general_aviation/read.main/2738508

Well done GOL and TAM!

Rgs,
 
LipeGIG
Posts: 5050
Joined: Tue May 03, 2005 7:33 am

RE: TAM Doubles 1Q Profit To USD55 Million

Sat May 06, 2006 7:22 am

Thanks for the news Hardi,
Good to see how good airlines find space for better results. It's also an indication that RG has solution (IF they copy the beenchmark from both JJ and G3)

Tam need to improve more their results as their costs are still higher than Gol, and its are a higher yield airline as well as they are stronger on corporate market.

Interesting fight... also Gol market value is almost 2x higher than Tam, a clear indication that they keep showing better results and forecasts.


Felipe
New York + Rio de Janeiro = One of the best combinations !
 
hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

RE: TAM Doubles 1Q Profit To USD55 Million

Sun May 07, 2006 9:06 pm

Hi, Lipe

Quoting LipeGIG (Reply 1):
Interesting fight... also Gol market value is almost 2x higher than Tam, a clear indication that they keep showing better results and forecasts.

Agree. GOL's performance is superior to TAM. But this is an interesting competition. You can note that TAM now also has a Investor Relations specific website. GOL aggresive expansion is also driving TAM to become faster in its decision making process.

Here is the link to the full press release on TAM's results:

http://www.b2i.us/Profiles/Investor/...=24950&myID=3255&L=e&Validate=3&I=

All in all, GOL and TAM are showing they are well managed and extremely profitable airlines.

Rgs,
 
hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

RE: TAM Doubles 1Q Profit To USD55 Million

Sun May 07, 2006 9:20 pm

Some more info on TAM during the FIRST QUARTER 2006:

- Pax transported: 5.5 million (+31.5%)
- Load factor: 72.6 (+2.6%) = domestic: 71%; international: 77.3%
- Break-even load factor: 63.9 (+0.3%)
- Aircraft utilization (hours/day): 12h40min (+16.3)
- Landings: 57,889 (+23.7%)
- No. staff: 10,240 (+19.8%)

TAM's "cash in hand" = BRL 1.2 billion or USD 600 million (they can easily buy the slots is LHR!  Smile )

TAM's increase in international supply was +25.8% which was made possible with the introduction of new routes and two additional A330s: GRU-JFK; FLN-EZE; REC-CDG; SSA-MIA. For the 2nd quarter TAM will launch MAO-MIA daily.

TAM's fleet as at 31.03.2006 is a follows:

A330s (212/213 seats): 10
A320s (168 seats): 37
A319 (138 seats): 13
F-100 (108 seats): 24

Total Fleet: 84 aircraft.

Rgs,

[Edited 2006-05-07 14:23:11]
 
LipeGIG
Posts: 5050
Joined: Tue May 03, 2005 7:33 am

RE: TAM Doubles 1Q Profit To USD55 Million

Mon May 08, 2006 6:31 am

Hardi,

Really impressive JJ numbers. We have to note that they are very happy with the nowadays R$/US$ rate (around R$ 2,055 = US$ 1,00). It makes cheaper maintenance and leasing, while as their revenue is almost 80% domestic, their revenue in US$ does not reduce profits (in fact they help to improve profits).

Quoting Hardiwv (Reply 3):
A320s (168 seats): 37

5 A320 with 12C 144Y (156 seats) used on international flights to EZE and on GRU-GIG-GRU legs as well as GIG-SSA-REC-NAT-REC-SSA-GIG, and more 2 coming to run MAO-MIA flight as well as new flights to EZE (rumors that the weekly GIG-EZE will become daily or 2x daily very soon as JJ has the approval for more flights to EZE, a GIG-CWB-EZE could also become real)

This monday JJ will improve GIG-BSB from 6 to 8 daily flights and very soon GIG-CWB and GIG-POA will be also upgraded by them.

Quoting Hardiwv (Reply 2):
Agree. GOL's performance is superior to TAM. But this is an interesting competition. You can note that TAM now also has a Investor Relations specific website. GOL aggresive expansion is also driving TAM to become faster in its decision making process.

In fact Tam in investing a lot in technology, they are ahead of Gol (the only one with check-in machines in Brazil) and last week they launch their new website allowing their customers to reserve seats, something we couldn't do in the past.

But as per your comments in other thread, they need to upgrade their product (Business) as soon as they can.

Felipe
New York + Rio de Janeiro = One of the best combinations !