TAM reported second-quarter net income of BRL97.1 million ($44.4 million), a strong improvement over a net loss of BRL24.7 million in the year-ago quarter, on a 38.9% increase in revenues to BRL1.73 billion.

The carrier said its leading domestic market share averaged 45.9% in the quarter, including 47.6% in June, as it continued to boost operational performance. Fleet utilization rose to 12 block hr. per day, up from 10.7 hr. in the year-ago quarter.

Second-quarter operating income was BRL140.1 million compared to an operating loss of BRL28.5 million last year, as expenses rose 21.1% to BRL1.51 billion including a 31.7% jump in fuel costs to BRL507.8 million. Traffic increased 39.5% to 6.04 billion RPKs on a 23.8% lift in capacity to 8.06 billion ASKs. Load factor improved 8.4 points to 74.9%, CASK dipped 2.2% to BRL18.7 cents and RASK increased 12.2% to BRL21.5 cents.

TAM also announced Friday that it will retake three A330s over the next two months that it had subleased to an undisclosed Middle East airline. The aircraft will be reintegrated into TAM's fleet for intercontinental flights, which could provide a further increase in international operations. While known as the leading domestic carrier in Brazil, it nearly doubled its international market share among Brazilian airlines to 30% in the second quarter from 16.6% in the year-ago quarter. It expects its fleet to reach 96 aircraft by the end of 2006 and 107 by the end of 2007.