TAM Reached a Net Income of R$ 788.9 Million in 2Q09

SAO PAULO -

(BOVESPA: TAMM4, NYSE: TAM) TAM presents the results of the 2nd quarter 2009 (2Q09). Operational and financial data, except where otherwise indicated, are presented based on amounts consolidated in Reais (R$) and prepared in accordance with Brazilian accounting principles (BR GAAP), law 11,638.

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Highlights - 7.1 million passengers transported in 2Q09 - Gross Revenues of R$ 2.4 billion - Punctuality index of 93.4% in the quarter, 1.5 p.p. higher than the sector’s average - Integration of our Loyalty program (TAM Fidelidade) with Air Canada’s mileage program (Aeroplan) - Beginning of code-share operations and integration of Loyalty programs with Swiss - Strengthening operations at Santos Dumont Airport, Rio de Janeiro - TAM Viagens updates its line of products and services - MRO - contracts for LAN Group’s aircraft maintenance - We launched the Multiplus Fidelidade - Airbus Operational Excellence Award for the A320 family Operational Performance Domestic Operations (2Q09 compared to 2Q08) - We reached 46.2% average market share. - Our capacity (ASK) in the domestic market increased 10.7% as a result of the net increase in our operating fleet of 2 A321, 8 A320 and 5 A319 (in 2Q09 we did not have any F-100 in our operating fleet). In the other hand, the block hours by aircraft reduced from 12.7 hours/day to 11.6 flown hours per day quarter average (total operation). - Demand (RPK) decreased 0.5%. - Our domestic load factor decreased to 61.7%. International Operations (2Q09 compared to 2Q08) - We had 86.6% average market share. - Capacity increased 23.4%, due to the increase of 4 B777, 4 A330 and 1 B767 into our international operating fleet (partially compensated by the phase-out of 4 MD11s from our fleet) making possible the beginning of long haul flights from Rio de Janeiro to Miami and New York and from Sao Paulo to Orlando. In South America, we started daily flights from Buenos Aires to Brasília and from Sao Paulo to Lima and Bariloche through the increase in the narrow body fleet operating in the region. Also in South America, we increase the capacity operating the B777 to Santiago. - Our demand increased 15.1%. - The international load factor decreased 4.9 p.p. to 68.4%. Financial Performance - Our total RASK decreased 20.9% - Total CASK decreased by 10.4% in 2Q09 compared to 2Q08, and CASK excluding fuel increased 15.0%. - EBIT and EBITDAR margins of (4.1)% and 8.3 % respectively. - Net income of R$ 788.9 million, a positive margin of 34.3%. - Our total cash and cash equivalents equaled R$ 1,057 million. - Return on Equity (ROE) of (64.1)%. - Return on Assets (ROA) of (6.2)%.

Source: TAM

Libano Miranda Barroso, TAM Investor Relations, +55-11-5582-9715, fax, +55-11-5582-8149, invest at tam.com.br / Logo: https://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO