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TAM Linhas Aereas reports Q4 2011 profit

Brazil’s largest carrier TAM Linhas Aereas recently announced its Q4 2011 operational results and reported profit on rising ticket prices.

The positive Q4 2011 results have also raised hopes of more profitable operations in 2012 despite cost pressures of late.

TAM revealed that it posted net income of $56 million in a securities filing. The airline also said that it rebounded from a $359.62 million loss in Q3 2011, partially because of improved pricing.

The positive outcome in Q4 2011 was because TAM boosted the spread of revenue over costs for each kilometer that its passengers traveled by 32 percent from Q3 2011, even as unit fuel costs jumped 27 percent.

The airline had said in January this year that it was cutting back its fleet to offset losses. TAM Linhas Aereas flights would be focusing more on the profitability of existing routes even as the airline sees air traffic growth in 2012 slowing to half of last year’s pace.

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