March 18, 2014
LATAM Airlines posts net loss of $46.1 m for fourth quarter
LATAM Airlines posted a net loss of $46.1m for the fourth quarter due to a drop in revenue and a foreign exchange loss stemming from the Brazilian real’s depreciation, the company said on Monday, March 17th. The company, formed in mid-2012 when Chile’s flagship LAN took over Brazil’s TAM, posted a net loss of $69.8m in the fourth quarter of 2012. Total revenues in the fourth quarter fell 2.1% to $3.4bn due to sliding passenger and cargo revenue and the weaker Brazilian currency. For full-year 2013, the regional carrier’s net loss amounted to $281.1m, versus a loss of $523.1m the prior year. Looking forward, LATAM Airlines said it has $3.06bn in fleet investment commitments between 2014 and 2015. It said it expected operating margin to be about 6 to 8% for full-year 2014, excluding non-recurring costs related to fleet restructuring. That compares to an operating margin of 4.9% in 2013 and 0.7% in 2012.