LATAM Airlines Group improves net result in second quarter but still a loss of $62.8m

posted on 16th August 2019 by Justin Burns
LATAM Airlines Group improves net result in second quarter but still a loss of $62.8m

The LATAM Airlines Group reported as a whole in the second quarter achieved a net result improved by $144.9 million year-over-year to a $62.8 million net loss in second quarter 2019, compared to a $207.8 million loss in the same quarter in 2018.

Total revenues rose 0.5 per cent year-on-year (YOY) in the second quarter of 2019 to $2.3 billion. This increase was driven by a 3.2 per cent increase in passenger revenues as a result of 4.8 per cent capacity growth.

LATAM Airlines Group reported an operating income of $40.2 million for the second quarter and an operating margin of 1.7 per cent.

Total operating expenses increased 1.1 per cent YOY in the second quarter to $2.3 billion, driven by a 5.2 per cent increase in fuel costs due to a 6.7 per cent increase in fuel consumption.

During the second quarter, LATAM and its affiliates transported more than 16.8 million passengers, an increase of 1.4 million passengers compared with the second quarter of 2018.

Over the past 12 months, it has transported more than 71 million passengers for the first time since the association between LAN and TAM. This growth has been especially strong in LATAM’s domestic markets, both in Brazil and in Spanish-speaking countries, which accounted for 1.3 million of the additional passengers in the quarter.

In Brazil, LATAM said the the local regulator has begun to redistribute the slots that became available at different airports, which will enable LATAM Airlines Brazil to accelerate growth in the second half of 2019.

In the group’s domestic markets alone, passengers carried rose by 1.3 million, representing an increase of 11 per cent year-on-year and reflecting the healthy demand in those countries.

The domestic operations of LATAM Airlines Group includes LATAM Airlines Chile, LATAM Airlines Peru, LATAM Airlines Argentina, LATAM Airlines Colombia and LATAM Airlines Ecuador.