TAM Airlines will reduce its domestic operations by up to 10% and can cut up to 2% of its workforce. The announcement was made by the company on Monday (20), explaining that the measure is due to “a challenging economic environment in the country.”
The cut in operations will be gradual, according to the company. Thus, the supply in the domestic market should fall between 2% and 4%. According to a statement sent to the Brazilian Securities Commission (CVM), however, TAM will not fail to operate in any of the current destinations. All destinations will be maintained.
The company says the job cuts will not reach the crew, given “the medium-term growth plans,” and promises to support laid-off with outplacement.
Abear, business association in the airline industry, said in April that companies should have lower profits in 2015 if the current downward trend in prices continues.
According to the entity, the slow economic activity caused the corporate demand (purchases made by companies or business) fell “brutally” from the normal proportion of 70% to 50% at this moment, getting even smaller in some flights.
In the first quarter of this year, Latam – consolidated company that includes TAM and LAN – posted a net loss of $ 40 million.