Brazil’s TAM May Raise Fares, CEO Says

TAM, Brazil’s largest airline, is gaining pricing power as demand for travel recovers in Latin America’s largest economy, and “there is room for an increase in air fares, acting chief executive Libano Barroso said.

Barroso told Valor Economico newspaper in an interview published on Wednesday that a fare increase should translate into more profit for the company. Barroso was named acting CEO of TAM last week in the wake of the unexpected resignation of David Barioni Neto.

Barioni’s plan to boost seats and routes will continue unaltered, Barroso told Valor. The airline will focus on boosting load factor and investing in safety to attract passengers, Valor quoted Barroso as saying.

Analysts worry that the management shuffle will delay TAM’s plans, Valor said. The carrier’s stock has fallen 18 percent over the last 12 months, compared with a gain of 87 percent in shares of rival GOL.