LATAM Airlines Swings To Q3 Profit
LATAM Airlines swung to a small third quarter profit on improved revenue and continuing cost reduction.
Net income of USD$4.7 million compared to a net loss of USD$113.3 million for the same period last year. Operating income saw a 26.3 rise to USD$120.6 million.
Revenue edged up 0.2 percent to USD$2.52 billion, its first revenue increase for eleven quarters.
LATAM reduced domestic capacity in Brazil by 13.2 percent and saw a rise in revenue per available seat km of 8.6 percent as a result.
Capacity on Brazil-US routes in the quarter to end September was reduced by almost a third, but overall international capacity rose by 4.9 percent.
Load factor came in 0.9 percentage points higher at 84.8 percent.
LATAM announced changes in its six domestic markets where it will move to a lower cost model, reduce fares and introduce fees for extras.
Air fares on domestic routes are predicted to be up to 20 percent cheaper, with a resulting increase in passenger numbers of 50 percent by 2020, the group said.
Ancillary revenue will come from fees for extra luggage, charging for food and beverages, seat selection and ticket flexibility.