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Brazil’s largest airline TAM, under cost cutting pressure from parent company (LATAM Group)  announced a 7% cut in the domestic routes for next year, in a move to restore profitability.

The company’s CEO Marco Antonio Bologna confirmed the measures, which will decrease TAM’s fleet to 109 airplanes from 114 this year, decreasing pressure on fares, which have been lower recently due to a fare war with GOL Airlines, Brazil’s number two.

The move is also poised to benefit smaller carriers Azul and TRIP wich are currently merging to form Brazil’s third carrier with 15% market share.