We recorded the best load factor of our history

In the international market we registered a load factor of 86.2% in July

São Paulo, August 18, 2011 – (BM&FBOVESPA: TAMM4, NYSE: TAM). Brazilian National Civil Aviation Agency (ANAC) disclosed today the operational data for the month of July 2011.

Domestic market

In the domestic market, we achieved a demand growth (in RPK) of 13.7%, combined with an increase of 10.6% in the supply (in ASKs), compared with July 2010, which led to an increase in the load factor of 2.0 p.p. to 72.9%. Our market share in the domestic market was 40.9%.

Regarding the domestic yield for July, we observed a decrease compared with the previous month, reflecting the seasonality of the month where we had a large number of passengers flying by leisure purposes, price sensitive, and, that are flexible to dates and times of travel. These passengers plan and buy their tickets in advance and in the off peak, when prices are lower, which results in a dilution of the total domestic yield. With this strategy, which is part of our retail project, we stimulate the market and seek to maximize the RASK (revenue per available seat kilometers) since we have already the capacity installed at these periods.

Since the beginning of August, we have seen a recovery in yields, reflecting the rationality of the market, confirming our expectation of a 5% increase in domestic yield for the third quarter of 2011 compared with the previous quarter.

International market

In the international market, compared to the previous month, we saw a rise of 12.3% in demand (in RPK) with a 9.7% increase in supply (in ASK) resulting in an increase of 2.0 p.p. in load factor reaching 86.2%. Our market share among Brazilian carriers in July was 88.0%.

The international demand remained strong and consistent in July which is a month of high season, mainly due to school holidays. To meet the increasing demand during that time, we operated an extra daily flight, round trip, between São Paulo and Orlando, from July 5 to August 1. From August 2nd, the flight became regular, representing the second daily flight between these two destinations.

The international yield in dollar, showed a strong increase from the previous month. This factor, combined with the increase in load factor resulted in the maximization of our unit revenue, RASK, reflecting the success of our strategy.