Domestic yield increases in August compared with July

São Paulo, September 20, 2011– (BM&FBOVESPA: TAMM4, NYSE: TAM). Brazilian National Civil Aviation Agency (ANAC) disclosed today the operational data for the month of August 2011.

Domestic market

In the domestic market, we achieved a demand growth (in RPK) of 0.9%, combined with an increase of 8.1% in the supply (in ASKs), compared with August 2010, which led to a decrease in the load factor of 4.6 p.p. to 64.3%. Our market share in the domestic market was 38.4%.

Aligned to our expectations, in the month of August we observed an increase in the yield (unit price) compared with the previous month, also it was flat versus the same month of 2010. This performance reflects the achievement of our strategy of maximizing RASK (unit revenue), reaching the best balance between yield and load factor. We remain confident with the expectation of a yield increase of roughly 5% in the 3Q11 compared with the 2Q11.

According to our CEO Líbano Miranda Barroso "As soon as we realized that travelers considered air travel as a concrete feasible option to bus travel, it is time for the recovery of margins in the industry, by increasing prices steadily and making balance between revenue and load factor of our flights. "

International market

In the international market, compared to the same month of 2010, we saw a rise of 8.3% in demand with a 10.2% increase in supply resulting in a decrease of 1.4 p.p. in load factor reaching 80.5%. Our market share among Brazilian carriers in August was 89.1%.

The international demand remained strong and consistent. The international yield in dollar showed a slight decrease compared with July. This is a seasonal trend of the market, since July is a high season month with elevated demand for international travel.