With increased Q4 profit, TAM planning to expand fleet by adding 34 new aircrafts
Elated at increased Q4 profit, Brazil’s largest airline TAM is planning to buy 34 new aircrafts for domestic and overseas market at an estimated investment of around USD 3.2 billion in a bid to expand its fleet. The airline is mulling to acquire 32 A320-family planes from Airbus and two Boeing 777-300ERs.
TAM recently announced a profit rise of around 7.9 percent in its 4th quarter. The airline expects that the aviation industry will see a great demand for leisure and business travel in the coming 20 years with an annual growth rate of 9 percent.
Libano Barroso, Chief Executive Officer, TAM said, "We are already preparing for the years after 2015, given the growing demand for air travel, both domestic and international, which is expected to continue to register strong growth."
According to the airline, there was slump of 80 percent in the third quarter of 2010; the net income has grown to USD 91 million in the last quarter of 2010 when compared to 2009.
There has been an increase of 9.7 percent net revenue from the last quarter. The gain in the country’s currency has also helped to boost the profit of the airline. The operational expenses increased to 25 percent every year. The fuel-related costs also gained by 29 percent and the payroll surged to 44 percent. The service and other non-operational items showed a 25 percent surge in the quarter. The financial expenses on the sequential basis increased to 69 percent.
The airline said that the Boeing will deliver its two planes by 2014, whereas the Airbus delivery will be done before 2016.