Airlines
TAM Reacts to Sagging Brazilian Market
Attributes traffic declines to inflation, currency devaluation
A TAM Airbus A320 lands at Porto Alegre, Brazil. (Photo: Flickr: Creative Commons (BY) by eduparise)
A TAM Airbus A320 lands at Porto Alegre, Brazil. (Photo: Flickr: Creative Commons (BY) by eduparise)

Brazilian airline TAM has decided to slash its domestic network by between 8- and 10 percent in reaction to sagging traffic and yields attributed to growing inflation and the depreciation of the Brazilian real versus the U.S. dollar. As a result, the company has revised its domestic capacity guidance for this year from a flat rate of growth to a contraction of 2- to 4 percent compared with its 2014 available seats miles (ASMs).