SAO PAULO (Reuters) - Brazil's leading airline, TAM Linhas Aereas (TAMM4.SA: Quote, Profile, Research) (TAM.N: Quote, Profile, Research), posted a 63 percent decline in fourth-quarter earnings on Monday.

Net profit slumped to 49.8 million reais ($28.6 million) from 136.2 million reais in the same period in 2006.

For the whole of 2007, TAM reported net income of 128.8 million reais, down sharply from 611.8 million reais in 2006, according to Brazil's generally accepted accounting principals (GAAP).

By U.S. accounting standards, TAM's fourth-quarter net fell 28.6 percent to 118.5 million reais, and full-year net declined 42 percent to 468.6 million reais.

($1=1.744 reais)

(Reporting by Alberto Alerigi Jr; Writing by Reese Ewing; editing by John Wallace)