Brazilian airline TAM’s fourth-quarter profit fell due to soaring fuel costs leading to a net profit of 95.5 million Brazilian reais ($55.3 million), down from BRL150.1 million in the year-earlier period. Fuel costs were up 31.6% in the period to BRL1.23 billion. Net revenue was BRL3.6 billion, up 11% from the fourth-quarter of 2010.
TAM said that earnings before interest, tax, depreciation, amortization and aircraft rental costs, or Ebitdar, were BRL611.9 million, up from BRL506.8 million a year earlier.
For the full year of 2011, the company reported a loss of BRL335.1 million, reversing a profit of BRL637.4 million in 2010.
TAM said it expects domestic air travel demand could increase as much as 11% this year.