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Optimistic About TAM – Analyst Blog

Zacks Market Commentaries (October 19th, 2009) Writes:
On Friday, TAM S.A. (TAM) disclosed its operating data for September 2009. For the month, TAM gained 87.3% market share in the international market, representing 5.2% growth year on year. However, the domestic market share was 44.2%, down 8.7% compared to the same period in 2008.  The domestic market was strongly stimulated during the month of September as a result of the competitive dynamics. In this environment, TAM observed a growth of 8.6% in domestic demand, while domestic supply grew by 7.4% compared with the same period in 2008. With this, TAM's load factor increased by 0.8% compared to September 2008 and presented a strong recovery of 2.6% compared to the August of 2009, reaching 65.4%. In September, industry demand grew 29.9%, while supply increased 19.9%.  The competitive scenario for September impacted domestic yield for the quarter, so that it declined between 5% and 10% compared ...

Star Alliance Inducts TAM – Analyst Blog

Zacks Market Commentaries (October 7th, 2009) Writes:

TAM S.A. (TAM) signed partnership agreements with two members of Star Alliance yesterday. It signed agreements with airline bmi (British Midland Airways Ltd.) and Austrian Airlines to allow members of the TAM Fidelidade program to accumulate and redeem points on flights operated by the British company and Austrian company respectively. The partnership benefits TAM's customers since Oct 1. Other members of Star Alliance include Thai Airlines, Shanghai Airlines and U.S. Airways.   Effective Nov 1, members of bmi's Diamond Club program will also be able to earn and redeem points on TAM flights. The agreement was signed with the strategy of integration into Star Alliance. With this, the company will establish partnerships with the main airline companies in the world, which will help in expanding the benefits to the clients.   The agreement will help clients by simplifying the flight reservation process, allowing convenient connection on one single airline

...

TAM Sets New Record – Analyst Blog

Zacks Market Commentaries (September 18th, 2009) Writes:
Earlier this week, TAM S.A. (TAM) disclosed its operating data for August 2009. For the month, TAM gained a record 89.4% market share in the international market, representing a 15.5% growth year on year. However, the domestic market share was 43.8%, down 10.4% compared to the same period in 2008.   In the domestic market, TAM experienced a 5.9% increase in offered capacity but a 1.7% decrease in demand.  In the international market, the company obtained a 16.8% growth in demand when compared to the same period last year, while the supply grew 24.5%.   Currently, as the Brazilian real appreciates against the U.S. dollar, net income should grow in the following quarters. We believe that the combined effect of lower interest rates and a stronger Brazilian real will boost demand for international flights among domestic travelers in the country through the rest of the year.   A ...

Brazilian Airlines Soaring High – Analyst Blog

Zacks Market Commentaries (September 9th, 2009) Writes:
Late last week, Brazil’s GOL Linhas Aereas Inteligentes S.A. (GOL) reported a 6.9% year-on-year increase in air traffic demand during the month of August. This was prompted by better supply and distribution of seats following its merger with VRG's operations in 2008, more aircraft in the fleet, the recovery of yields and the reduction in promotions due to renewed increase in business trips in August after the July holiday season and the continued revitalization of the SMILES program.

Domestic market demand rose by 29% from August 2008, but fell 19.3% sequentially due to seasonality. International market demand dropped by 60.7% year over year due to the strategic repositioning of the company's traffic network at the end of July 2008, which eliminated long-haul routes, and fell by 13.8% compared to last month.

In line with its focus on optimizing operating profitability, the utilization ratio of the company's operational fleet

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Brazil’s GOL Flying High – Analyst Blog

Zacks Market Commentaries (August 21st, 2009) Writes:
Last week, GOL Linhas Aereas Inteligentes S.A. (GOL), announced its preliminary traffic figures for July 2009, representing an increase in demand in its route network for the fourth consecutive month.

The company reported a 7.4% increase in passenger traffic over July 2008 and a 20.3% upturn over the previous month. This growth was primarily driven by the increase in the supply of low-fare seats and the SMILES program (Latin America’s largest mileage program, with more than 6.2 million members).

The recent Operational Safety Audit registration from the International Air Transport Association will create a potential for its new code-share agreements with foreign airlines. This will provide GOL with a larger intercontinental feeder network, increasing the number of passengers with direct, convenient access to its extensive South American network.

Earlier this month, the company posted better-than-expected second-quarter results. Net income was R$353.7 million (US$192 million) compared to a loss

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