We recorded the best load factor in international flights for the month of June

São Paulo, July 21, 2011 – (BM&FBOVESPA: TAMM4, NYSE: TAM). Brazilian National Civil Aviation Agency (ANAC) disclosed today the operational data for the month of June 2011.

Domestic market

In the domestic market, we achieved a demand growth (in RPK) of 15.5%, combined with an increase of 10.7% in the supply (in ASKs), compared with June 2010, which led to an increase in the load factor of 2.8 p.p. to 66.6%. Our market share in the domestic market was 41.7%.

Regarding the domestic yield in June, we observed a recovery in comparison with the previous month, reflecting the movement of rationality observed in the market.

Cumulatively for the period from January to June of 2011 compared with 2010, our demand grew by 22.2%, while the supply growth stood at 14.3%, resulting in a 4.5 percentage point increase in the load factor, reaching 69.8%.

We reiterate our estimates for 2011. In the first half of 2011 the growth of domestic supply (ASK) was slightly above our estimate, which is between 10% and 14%. We believe that due to the strong comparison base of the second half of 2010 we will achieve our growth target for the year in the domestic market which is between 10% and 14%. Our load factor in the first half of 2011 was 69.8%, in line with our expectation among the range of 67.5% to 70%.

International market

In the international market, compared to the same month last year, we saw a rise of 9.0% in demand (in RPK) with a 8.5% increase in supply (in ASK) resulting in an increase of 0.4 p.p. in load factor reaching 79.6%. Our market share among Brazilian carriers in June was 90.6%.

The international demand remains strong and consistent in June which recorded a international yield in dollar slightly lower than the previous month, mainly due to normal seasonality of the period and the Corpus Christi holiday, increasing the number of passengers flying for leisure proposes.

Cumulatively for the period from January to June of 2011, our demand grew by 18.6%, while the supply growth stood at 13.0%. The load factor stood at 80.8%, a 3.9 p.p. increase compared to the same period last year.