Brazilian airline TAM plans to limit flights and fleet in 2013
Skift Take
The cut in domestic flights will give Brazil’s smaller airlines the opportunity to grow as TAM battles slow growth rates and high exchange rates for fuel.
Brazilian airline TAM plans to slash domestic routes next year to restore profitability in the face of high fuel costs and cooling demand, the carrier's chief executive said in a newspaper interview published on Friday.
The outlook reinforces a continued emphasis on cost-cutting under LATAM Airlines Group , the regional giant formed in a takeover by Chile's LAN Airlines.
TAM's fleet in the country will shrink to 109 from 114 next year, easing pressure on ticket prices that plunged last year amid a battle for market share with Gol Linhas Aereas , Brazil's second largest airline.
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