Air transportation service provider TAM S.A. (TAM), Tuesday announced operating details, reporting a 11.4% increase in June market share, helped by strong growth in demand and supply for the month.
The Sao Paulo, Brazil-based company said domestic demand or traffic, for June measured in revenue passenger kilometers or RPKs grew 0.8% to 1.97 billion, while domestic supply or capacity, measured in average seat kilometers or ASK improved 4.7% to 3.05 billion. The company also noted that in June, market demand increased 9.4% and market supply increased 11.9%.
TAM's domestic market share during the month of June, however, dropped 3.8 percentage points to 44.8% from the prior year month. Domestic load factor was 64.7%, down 0.8 percentage points from the market average of 65.4%.
In the international market, June traffic grew 18.1% to 1.42 billion RPKs , while capacity increased 25.5% to 2.08 billion ASKs from the year ago similar period. Market share in June 2009 was 86.7%, up 11.4 percentage points year-over-year. International load factor for June was 68.3%, 2.8 percentage points higher than the market average of 65.5%.
For the second quarter, domestic capacity rose 8.7% to 9.38 billion ASKs, while domestic traffic was down 2.6% at 5.79 billion RPKs. Market share was down 2.1 percentage points at 46.2%, with a 7.2 percentage points decline in load factor at 61.7%, compared to the year-ago quarter.
In the international segment, traffic for the quarter grew 17.3% to 4.28 billion RPKs, while capacity increased 25.5% to 6.22 billion ASKs. Market share during the quarter was 86.6%, compared to 74.0% in the year-earlier quarter. International load factor was 68.8%, down 4.8 percentage points from 73.6% recorded in the prior-year quarter.
TAM is currently trading at $11.13, up $0.56 or 5.30%, on a volume of 0.38 million shares.
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