Tag Archives: TAM Linhas Aereas

LATAM Airlines Group reports first quarter net income of $80.7 million, will phase out its Airbus A330s, A340s, Boeing 737s and Bombardier Q400s

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $146.7 million (US) for first quarter 2014 excluding non-recurring costs related to fleet restructuring. The increase of 28.5% as compared to the first quarter 2013 was driven by strong improvements in the results of LATAM’s passenger operations in most markets, especially in the Brazilian domestic operations, offset by the 18.5% depreciation of the Brazilian real over this period as well as by weaker results in the cargo business. Operating margin excluding fleet restructuring costs reached 4.6%, an increase of 1.2 points compared to 3.4% in 2013.

LATAM Airlines Group’s net income reached $80.7 million (US)  for first quarter 2014, excluding non-recurring costs related to fleet restructuring, compared to net income of $42.7 million (US) for the same period 2013.

The group further stated:

Having concluded a thorough review of its post-merger fleet plan and fleet requirements, and the changes in the competitive environment, the Company is undertaking a broad fleet restructuring plan with the aim of reducing the number of models operated, phasing out less efficient models and allocating aircraft best suited to each one of its markets. As a result, the Company expects to redeliver a significant number of aircraft between 2013 and 2016, and to fully phase out its Airbus A330s, A340s, Boeing 737s and Q400s. During the first quarter of 2014, LATAM has provided for estimated penalties related to anticipated redeliveries and other redelivery expenses expected to be incurred as a result of this process, recognizing non-recurring costs of $147 million (US). Of this total amount, $34 million(US) are recorded as aircraft maintenance operating expenses and $112 million (US) are recognized as Other Non-Operating Costs.

During the first quarter of 2014, LATAM continues to rationalize capacity in both passenger and cargo operations. As a result, passenger ASKs declined by 4.3% and cargo ATKs declined by 6.6% as compared to the first quarter of 2013. In the passenger markets, capacity cuts were mainly driven by reductions on international routes, which decreased by 7.5% as compared to the same period in 2013, and the continued rationalization of our domestic Brazil operations. Load factors continue to increase in all markets, reaching record levels at 82.7%.

On March 31, 2014, TAM celebrated its official entrance into the oneworld alliance. This allows TAM to offer customers an improved network in regions that are most important to them, and represents a significant milestone for LATAM Airlines Group as it continues to develop its international connectivity.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. TAM is phasing out its Airbus A330s and its A340s as the group concentrates around its Boeing 767/777/787 fleet for its long-range flights. Airbus A340-541 PT-MSN (msn 445) in the 1999 color scheme arrives back at TAM’s Sao Paulo (Guarulhos) hub.

LAN-TAM Tails

LAN Airlines (Chile): AG Slide Show

TAM Airlines (TAM Linhas Aereas): AG Slide Show

TAM Airlines is coming to Canada

TAM Airlines (TAM Linhas Aereas) (Sao Paulo) has been granted authority by the Agencia Nacional de Aviacio Civil (ANAC) of Brazil seven weekly frequencies for conducting mixed air services between Canada and Brazil.

The route is unspecified but it is most likely Sao Paulo-Toronto in competition with Air Canada.

Copyright Photo: Wingnut/AirlinersGallery.com. Airbus A330-203 PT-MVK (msn 486) of TAM taxies across the tarmac at London’s Heathrow Airport.

TAM Aircraft Slide Show: CLICK HERE

TAM joins Oneworld today

TAM 777-300 Oneworld (TAM)(LR)

TAM Airlines (TAM Linhas Aereas) (Sao Paulo), the Brazilian carrier of the LATAM Airlines Group, today (March 31) joined Oneworld, an airline alliance currently undergoing the largest expansion in its history.

This is one of the most important steps to achieve the entry of all LATAM Airlines Group into Oneworld. LAN Airlines has been a member of Oneworld since 2000 as well as all of its affiliates, namely LAN Argentina, LAN Colombia, LAN Ecuador and LAN Peru, have already joined. TAM’s affiliated airline in Paraguay (TAM Mercosur), will also join Oneworld soon. As a result, all passenger airlines of the LATAM Airlines Group will be members of the same alliance.

To celebrate this moment, today TAM’s first aircraft bearing the Oneworld logo will be on display at Congonhas Airport in Sao Paulo with the presence of CEOs and representatives of all Oneworld member airlines, who traveled to Brazil especially for this event.

As a result of the merger with LAN Airlines, TAM left the Star Alliance to join Oneworld.

Image: TAM.

TAM: AG Slide Show

 

LATAM Airlines Group’s 2013 operating profit increases by 605% to $643.9 million

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $234.9 million (US) for fourth quarter 2013, a 166% increase compared to the $88.3 million (US) operating income in fourth quarter 2012. Operating margin reached 6.9%, an increase of 4.4 points compared to 2.5% in 2012. This strong expansion in margins was driven by significant improvement in the financial results of the domestic Brazil operations and the rationalization of international passenger operations, as well as the continued progress of the integration process, synergy and efficiency initiatives.
During the fourth quarter of the year, and in line with the capacity cuts we had anticipated, we strongly decreased our total capacity as measured in ASKs by 4.5% as compared to the same period in 2012. This capacity rationalization was mainly a result of a strong decrease in capacity in our international network, which decreased by 6.5% as compared to the same period in 2012; and the continued rationalization of our domestic Brazil operations.
For full year 2013, LATAM reported operating income of $643.9 million (US), a 605% increase compared to the $91.4 million (US) in full year 2012 (pro forma). Operating margin reached 4.9% an increase of 4.2 points compared to 0.7% in 2012, in line with the guidance provided by the Company.

Read the full report: CLICK HERE

Top Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-233 CC-CQN (msn 3319) of Lan Airlines (Chile) arrives at Aeroparque (Jorge Newbery) (AEP) in downtown Buenos Aires.

LAN Airlines: AG Slide Show

TAM Airlines: AG Slide Show

Bottom Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-232 PR-MBH (msn 2904) taxies at Buenos Aires downtown airport, Aeroparque (Jorge Newbery).

 

 

TAM Airlines to start Fortaleza-Miami flights on May 31

TAM Linhas Aereas (TAM Airlines) (Sao Paulo) will introduce Fortaleza-Miami weekly flights with Airbus A330 aircraft starting on May 31 according to Airline Route.

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A330-223 PT-MVO (msn 949) arrives in London (Heathrow).

TAM: AG Slide Show

 

LATAM swings to a net profit of $52 million in the third quarter

LATAM Airlines Group (LAN Airlines and TAM Linhas Aereas) (Santiago and Sao Paulo) swung to the black in the third quarter with a net profit of $52 million versus a loss of $49 million a year ago for the same period.

Read the full report: CLICK HERE

Read the analysis by Reuters: CLICK HERE

Copyright Photo: Rodrigo Cozzato/AirlinersGallery/com. LAN Cargo’s (LAN Airlines Chile) Boeing 777-F16 N778LA (msn 41518) departs from Viracopos Airport near Sao Paulo.

LAN Airlines: AG Slide Show

TAM Linhas Aereas: AG Slide Show

LAN Colombia joins Oneworld, TAM to join on March 31, 2014

LAN Colombia (formerly AIRES Colombia) (Bogota) yesterday (October 1) joined the oneworld® alliance.

 

LAN Colombia, a company related to LATAM Airlines Group SA (LAN Airlines), has entered oneworld as an affiliate member.   LAN Airlines has been a full member of oneworld since 2000.  All its other passenger airline affiliates have subsequently joined the alliance as affiliate members – LAN Argentina, LAN Ecuador, LAN Peru and, from today, LAN Colombia – and, it was announced today, TAM will enter oneworld on 31 March 2014 with its Paraguayan affiliate to follow on a date yet to be confirmed.
This will bring all of the components of Latin America’s leading airline group into the world’s leading quality airline alliance, building on oneworld’s position as the first choice airline alliance for frequent international travelers within South America and worldwide.
LAN Colombia was welcomed into oneworld at a ceremony this morning at its Bogota base hosted by LAN Colombia’s Chairman Nicolás Cortázar, its Executive Director Hernán Pasman and its Corporate Director Maria Lara, with oneworld CEO Bruce Ashby, flying in from his New York base, LATAM Vice-President Strategic Alliances Soledad Berrios, from LAN Airlines’ Santiago head office, and senior representatives from the other oneworld airlines serving Colombia, led by American Airlines Managing Director Alliances Latin America Eduardo Marcos, from its Dallas-Fort Worth head office, and Iberia Country Manager María Consuelo Sánchez.
LAN Colombia’s Chairman, Nicolás Cortázar, said: “LAN Colombia is very proud to have joined oneworld.  For our company, it represents a significant milestone.  For our country, it significantly improves our access to the rest of the world, helping attract more business visitors and tourists, enabling Colombians to reach more of the world’s most important business centres worldwide and making it easier to travel the world from any of the destinations we serve throughout Colombia.”
Since its launch in December 2011, LAN Colombia has quickly established itself as the second biggest airline in South America’s second largest economy.  In total, it serves 24 airports in four countries with a fleet of 24 aircraft operating 130 departures a day.  It boarded 3.7 million passengers in 2012.
TAM Airlines (TAM Linhas Aereas) (Sao Paulo), a company related to LATAM Airlines Group, will join oneworld® with effect from March 31, 2014, adding the leading carrier in Brazil – Latin America’s biggest economy and largest market for air travel demand – to the world’s leading quality global airline alliance.
TAM’s entry into oneworld with effect from the first flights on March 31, 2014 will follow immediately upon its exit from the Star Alliance with effect from the final flights on March 30, 2014.
TAM serves 60 destinations in 16 countries in Latin America, the USA and Europe, with a fleet of 161 aircraft operating 800 departures daily.  It boarded 38 million passengers in 2012.
Three of oneworld’s existing members – American, Iberia and LAN – already serve three destinations in Colombia, in Bogota, Cali and Medellin.   LAN Colombia expands that to a total of 21 Colombian gateways.
Across South America, oneworld’s established member airlines already serve 71 destinations in 11 countries.  LAN Colombia and TAM add another 56 airports in the region to that network – with LAN Colombia bringing 18 airports on board and TAM.
Worldwide, with LAN Colombia, TAM and the other airlines lining up to join, oneworld will:
  • Serve almost a thousand airports in more than 150 countries, with 14,000 daily departures.
  • Carry 480 million passengers a year on a combined fleet of more than 3,200 aircraft.
  • Generate US$ 140 billion annual revenues.
The addition of LAN Colombia  and TAM from March 31, 2014 represents a cornerstone of oneworld’s biggest membership expansion yet.  Other elements elsewhere in the world include:
  • The addition of Malaysia Airlines, one of this industry’s most frequent award winners, six months ago, further strengthening oneworld’s position in South East Asia, one of the fastest growing regions for air travel demand.
  • The induction on October 30, 2013 of Qatar Airways, the only one of the “Gulf Big Three” carriers slated to join any of the global airline alliances and one of the world’s fastest growing and most highly rated airlines.  This will make oneworld the leading alliance in the Middle East, one of the world’s fastest growing regions for air travel demand.
  • The introduction early next year of SriLankan Airlines, as the first airline from the Indian subcontinent to join any global alliance, which, with Qatar Airways, will make oneworld the leading alliance in the region.
  • The proposed switch by US Airways from Star to oneworld as part of its planned merger with American Airlines, subject to necessary approvals.

 

Copyright Photo: Brian McDonough/AirlinersGallery.com. LAN Colombia’ Airbus A320-233 CC-CQN (msn 3319) prepares to land at Miami.

LATAM Airlines Group loses $330 million in the 2Q

LATAM Airlines Group (LAN Airlines and TAM Linhas Aereas) (Santago and Sao Paulo) reported it lost $330 million in the second quarter. The group was created last year with the merger of the two airlines. The group is struggling in Brazil with TAM due to a weakening Brazilian economy. TAM is cutting costs and reducing flights.

Read the full report: CLICK HERE

LATAM Airlines Group Fleet Plans (excerpt from the report):

LATAM Airlines Group 8:2013 Fleet

Top Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Sporting new Sharklets, Airbus A320-214 PR-MYY (msn 5591) taxies at the Sao Paulo (Guarulhos) hub.

LAN Airlines (Chile): AG Slide Show

TAM Linhas Aereas: AG Slide Show

Bottom Copyright Photo: Alvaro Romero/ModoCharlie.com. Boeing 777-F6N N772LA (msn 37708) arrives at the Santiago hub.

American Airlines launches a code-share agreement with TAM Linhas Aereas, will launch new routes to Brazil

American Airlines (Dallas/Fort Worth) has announced the launch of a new code-share agreement with TAM Linhas Aereas (TAM Airlines) (Sao Paulo), increasing American’s network connectivity in Brazil and further enhancing its relationship with LATAM Airlines Group. Customers can begin booking tickets on code-share flights for travel starting on August 22.

Through the agreement, the two airlines will code-share on each other’s flights between the United States and Brazil. American’s customers will also have access to TAM flights from Rio de Janeiro and Sao Paulo to eight additional destinations throughout Brazil, including Fortaleza, Natal and Vitoria, and TAM’s customers will also have access to American flights from Miami, New York and Orlando, to 25 cities in the U.S., including Atlanta, Los Angeles and Washington, D.C.

The improved access provided through the relationship will also complement American’s new Brazilian service to Curitiba (CWB) and Porto Alegre (POA) from Miami, pending government approval, and Sao Paulo (GRU) from Los Angeles, all of which will be available for booking on August 18. The new service from Miami to Curitiba and Porto Alegre will launch on November 21 and the service from Los Angeles to Sao Paulo will launch on December 16. With the additional routes, American will serve nine destinations in Brazil.

TAM, which plans to join the oneworld® alliance in 2014, is a member of the LATAM Airlines Group. LATAM operates nearly 1,500 daily flights to 144 destinations in 27 countries.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. American’s Boeing 737-823 N980AN (msn 33203) approaches Los Angeles International Airport for landing.

American Airlines: AG Slide Show

TAM: AG Slide Show

Bottom Copyright Photo: Bernardo Andrade/AirlinersGallery.com. TAM’s Airbus A319-132 PR-MAN (msn 1831) prepares to land at the downtown Santos Dumont Airport in Rio de Janeiro.

LATAM Airlines Group reports 1Q net income of $42.7 million, down 48.9%

LATAM Airlines Group (LAN Airlines) (TAM Linhas Aereas) (Santiago and Sao Paulo) has reported its financial results through March 31, 2013 for the first quarter:

HIGHLIGHTS

    • LATAM Airlines Group reported operating income of $114.2 million (US) for first quarter 2013, a 149.8% increase compared to the $45.7 million pro forma operating income in first quarter 2012. Operating margin reached 3.4%, an increase of 2.0 points compared to 1.4% in 2012. This result reflects a steady recovery in business operations as we advance in the process of achieving the expected synergies from the merger between LAN and TAM.

 

    • Net income reached $42.7 million for first quarter 2013, compared to a pro forma consolidated net income of $83.7 million for the same period in 2012, which represents a decrease of 48.9% mainly due to a foreign exchange gain of $133.4 million recognized at TAM during the first quarter 2012.

 

    • TAM continues to make significant progress in the turnaround of the domestic Brazil passenger operations, maintaining capacity discipline with a 9.2% reduction in ASKs during the first quarter 2013 as compared to the first quarter 2012. Healthy traffic growth of 3.4%,as well as improved market segmentation and revenue management practices have resulted in strong load factor improvements of 9.5 percentage points as compared to the first quarter 2012,reaching 77.7%. This led to a significant increase in revenue per ASK,as measured in Brazilian reais. Results in U.S. dollars were affected by a 13% depreciation of the Brazilian currency during the quarter as compared to the first quarter 2012. We remain convinced that capacity discipline and an adequate segmentation of the market will provide the basis for continued healthy load factors and a significant improvement in operating results in 2013.

 

    • We remain confident in our synergy target of between $600 and $700 million, to be fully achieved by the fourth year after the merger (June 2016). Important progress was made in recent months with the code share agreement signed between TAM and American Airlines as well as with LATAM’s election of oneworld as its global alliance. We have begun to harmonize the airlines’ frequent flyer programs,as well as advanced on cost initiatives related to contract renegotiations and process standardization. Furthermore, important synergies have been achieved through the coordination of the LAN and TAM cargo operations. We expect merger synergies to be between $250 and $300 million during 2013. However,we expect to continue to incur certain costs related to the integration process.

 

    • Total revenues in the first quarter 2013 reached $3,409.0 million compared to pro forma revenues of $3,360.2 million in first quarter 2012. The increase of 1.5% is a result of a 1.5% increase in passenger revenues and a 38.6% increase in other revenues, partially offset by a 3.2% decrease in cargo revenues. The slight increase in revenues reflects capacity reductions in the domestic Brazil passenger operations and a more challenging environment for international passenger operations, as well as weak market demand in the cargo business. Passenger and cargo revenues accounted for 84.2% and 13.5% of total revenues, respectively, in first quarter 2013.

 

  • During the first quarter 2013, LATAM received a total of 5 Airbus A320 family aircraft and 1 Boeing 767-300 passenger aircraft. Furthermore, the Company returned 1 Airbus A320-200 and sold 2 Airbus A318 aircraft.

Top Copyright Photo: Alvaro Romero/ModoCharlie.com. LAN Airlines’ Airbus A318-121 CC-CVR (msn 3390) carries special Telethon 2011 logo at Santiago. The snow-capped Andes Mountains are in the background.

LAN Airlines: AG Slide Show

LATAM Airlines Group logo

TAM Linhas Aereas: AG Slide Show

Bottom Copyright Photo: Bernardo Andrade. TAM’s Airbus A319-132 PT-TMD (msn 4192) in the retrojet color scheme climbs away from Santos Dumont Airport in downtown Rio de Janeiro. Please click on the photo for the full-size view.