TAM grabs share of Brazil market

According to the Air National Civil Aviation Agency (ANAC) TAM registered a 45.6% growth in domestic RPK (demand) compared to the same period last year, and a 21.0% increase in domestic ASK (supply). In June, market demand increased by 23.7% and market supply increased by 10.2%. In the international market, TAM registered a 51.9% growth in RPK and 40.4% in ASK, compared to June 2005.

TAM’s domestic load factor was 78.4%, a 13.2 percentage-point growth compared to June 2005 and higher than the 75.5% market average. Regarding the international load factor, TAM reached 75.1%, a 5.7 percentage-point growth, higher than the market average of 69.0%.

TAM registered a domestic market share (RPK) of 47.6%, a 7.1 percentage-point growth compared to the same period in 2005 and 2.0 percentage points compared to May 2006. Regarding the international market, the company reached a market share of 37.9%, representing a 20.2 percentage-point growth year on year and 9.4 percentage points compared to May 2006.

For the third consecutive month, TAM had the largest air traffic volume in Brazil: in June, adding domestic and international flights, TAM reached 2.110 billion passenger-kilometers transported, equivalent to a 44.7% market share. Considering the first half of 2006, TAM also took the lead in the market as a whole (domestic and international), with a participation of 37.8%.

Due to competitive dynamics, the scheduled domestic yield reduced in June year on year.
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