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American Airline takes US$592 million loss because of trapped Venezuelan revenues
American Airlines has written off US$592 million as a 2015 fourth quarter special charge relating to revenues trapped in Venezuela.
"In connection with the preparation of the company's financial statements for the fourth quarter of 2015, management has concluded that due to continued lack of repatriations and deterioration of economic conditions in Venezuela, the company will recognise a $592 million special charge in the fourth quarter of 2015 to write off all of the value of Venezuelan bolivars held," said the company statement.
According to Reuters, Venezuela's socialist government had compelled carriers to sell tickets in bolivars but made reconverting the sales into US dollars difficult.
Globally, airlines have around $3.7 billion trapped in Venezuela as a result of its 12-year-old currency control system, the International Air Transport Association said.
"In connection with the preparation of the company's financial statements for the fourth quarter of 2015, management has concluded that due to continued lack of repatriations and deterioration of economic conditions in Venezuela, the company will recognise a $592 million special charge in the fourth quarter of 2015 to write off all of the value of Venezuelan bolivars held," said the company statement.
According to Reuters, Venezuela's socialist government had compelled carriers to sell tickets in bolivars but made reconverting the sales into US dollars difficult.
Globally, airlines have around $3.7 billion trapped in Venezuela as a result of its 12-year-old currency control system, the International Air Transport Association said.
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