TAM increases lead over GOL in Brazilian domestic market

Image: TAM Airlines

TAM appears to be taking advantage of GOL’s recent problems by increasing its market share of the Brazilian domestic market to well over 50%. GOL’s domestic market share is now around 35% (based on RPKs). Between them the two carriers have a solid 88% of the domestic market which increases to 93% if we include GOL’s affiliate VRG (formerly known as Varig).

Chart: Brazilian Domestic Market
Source: ANAC

Among the smaller carriers Rio-based Webjet has increased its domestic share to around 3% during the third quarter of 2008.

Domestic passengers up 4.2%, international up 7.6%

Based on passenger numbers through airports domestic traffic is up 4.2% in the first nine months of 2008. Traffic was up 6.7% in July and 9.0% in August but appears to have fallen by 1.6% in September.

Chart: Brazilian airports domestic traffic 2005-8
Source: Infraero

International passenger numbers are up 7.6% in the first nine months of 2008. Double-digit growth was achieved in both July and August.

Chart: Brazilian International Traffic
Source: Infraero

TAM’s share of international traffic among Brazilian carriers has risen further from 75% in June to 82% in September. In the first nine months of 2008 international RPKs operated by Brazilian carriers have increased 36% while ASKs have increased just 22% resulting in load factors improving from 64.0% to 71.1%.


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