TAM Presents 4Q07 Operating Indicators

SAO PAULO, Brazil, March 11 /PRNewswire-FirstCall/ -- TAM S.A. (Bovespa: TAMM4 e NYSE: TAM) presents below its preliminary and non audited 4Q07 and consolidated 2007 operating indicators. Data is presented according to different accounting rules, the first table in BR GAAP and the second in US GAAP.

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BR GAAP* Change (%)
4T07 2007 4T06 2006 4T Year
Total RASK
(cents of
reais) (1) (2) 17.87 17.12 19.28 20.65 -7.3 -17.1

Load factor - % 71.0 70.4 71.5 73.9 -0.5 p.p. -3.5 p.p.

Yield Total
(cents of
reais) (1) (3) 26.00 25.30 28.21 29.29 -7.8 -13.6

RASK Scheduled
Domestic
(cents of
reais) 16.69 15.51 17.53 19.88 -4.8 -22.0
Scheduled Domestic
Load factor - % 70.4 69.5 69.7 72.0 0.7 p.p. -2.5 p.p.
Yield Scheduled
Domestic
(cents of
reais) 24.90 23.42 26.42 29.06 -5.8 -19.4

RASK Scheduled
International
(cents of
reais) 11.26 12.44 16.60 16.22 -32.2 -23.3
Scheduled International
Load factor - % 71.0 70.5 73.7 76.3 -2.7 p.p. -5.8 p.p.
Yield Scheduled
International
(cents of reais) 15.88 17.66 22.58 21.28 -29.7 -17.0
Yield Scheduled
International
(cents of USD) 8.96 9.15 10.56 9.82 -15.1 -6.8

Total CASK
(cents of reais) 17.22 16.57 16.98 17.85 1.4 -7.1
CASK-ex fuel
(cents of reais) 11.99 11.25 11.52 11.86 4.1 -5.2

*according to non-audited numbers for the 4Q07
(1) Includes Revenue PAX, Cargo and others,
(2) Net of taxes,
(3) Gross of taxes.

US GAAP* Change (%)
4T07 2007 4T06 2006 4 T Year
Total RASK
(cents of
reais) (1) (2) 17.82 17.08 19.28 20.61 -7.6 -17.1

Load factor - % 71.0 70.4 71.5 73.9 -0.5 p.p. -3.5 p.p.

Yield Total
(cents of
reais) (1) (3) 26.00 25.30 28.21 29.29 -7.8 -13.6

RASK Scheduled
Domestic
(cents of
reais) 16.69 15.51 17.53 19.88 -4.8 -22.0
Scheduled Domestic
Load factor - % 70.4 69.5 69.7 72.0 0.7 p.p. -2.5 p.p.
Yield Scheduled Domestic
(cents of
reais) 24.90 23.42 26.42 29.06 -5.8 -19.4

RASK Scheduled
International
(cents of
reais) 11.26 12.44 16.60 16.22 -32.2 -23.3
Scheduled International
Load factor - % 71.0 70.5 73.7 76.3 -2.7 p.p. -5.8 p.p.
Yield Scheduled
International
(cents of
reais) 15.88 17.66 22.58 21.28 -29.7 -17.0
Yield Scheduled
International
(cents of
USD) 8.96 9.15 10.56 9.82 -15.1 -6.8

Total CASK
(cents of
reais) 17.15 16.22 17.02 17.54 0.8 -7.6
CASK-ex fuel
(cents of
reais) 11.92 10.89 11.56 11.55 3.1 -5.8

*according to non-audited numbers for the 4Q07
(1) Includes Revenue PAX, Cargo and others,
(2) Net of taxes,
(3) Gross of taxes

According to TAM's policy of follow up guidance provided to the market, we present 2007 results vis-a-vis the guidance released at the end of 2006:

Guidance 2007 Jan - Dec 07

Mercado -- Market demand growth from 10%
to 15% (in RPK terms) 11.9 %

TAM -- Average domestic market share 48.9 %
above 50%
-- Average domestic load factor at
approximately 70% 70.5 %

-- Aircraft utilization per day
(block hour) higher than 13 hours 12.6
-- Reduction of 7% in total CASK
ex-fuel in BR GAAP yoy 5.2 %

-- Opportunity in the international
market

- Third frequency to Paris Since January

- Inauguration of two new Milan (March),
international long haul Frankfurt (November)
frequencies and Madrid
(December)

Despite the challenges during the year, we practically exceeded all of our targets. The exceptions were (1) the CASK reduction, which reached 74% of target, impacted mainly by (2) the aircraft utilization per day and by the above planned international expansion, which led to additional set-up costs. The aircraft utilization per day was affected by the regulatory / operational changes in the industry throughout 2007. (3) Market share came in at 1.1 percentage points below target mainly due to the increase in capacity in the industry for the year above that which was originally guided in 2006.

TAM, aligned with the best corporate governance practices, highlights the delivery of the guidance, reinforcing its commitment to the market in realizing the targets defined by the company. We believe this is the pillar to assure transparency to the analysts of the main houses that cover the company (that can be found in the website www.tam.com.br/ir) as well as to all investors.

About TAM:

TAM (www.tam.com.br) has been the leader in the Brazilian domestic market for more than three years, and held a 50.6% domestic market share and 67.3% international market share at the end of February 2008. TAM operates regular flights to 45 destinations throughout Brazil. It serves 82 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. Currently, the program has over 4.5 million subscribers and has awarded more than 5.2 million tickets.

First Call Analyst:
FCMN Contact: andre.ferreira@tam.com.br

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PRN Photo Desk, photodesk@prnewswire.com
Source: TAM S.A.

CONTACT: TAM Investor Relations, 55-11-5582-9715, fax: 55-11-5582-8149,
invest@tam.com.br; or Press Agency, 55-11-5582-8167, fax: 55-11-5582-8155,
tamimprensa@tam.com.br; or MVL Comunicacao, 55-11-3594-0302, 55-11-3594-0304,
or 55-11-3594-0305

Web site: http://www.tam.com.br/

2008-03-11 21:55:57 0310201 PRNEWSWIRE