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Latam Airlines Group's Q2 revenue plummets 12.5pc to US$2.1 billion
LATAM Airlines Group's total second quarter revenue dropped 12.5 per cent compared to the same period a year earlier to US$2.1 billion, with cargo accounting for 12.3 per cent of the total.
Aside from the 22.3 per cent decline in cargo revenues and the 13.7 per cent decline in passenger income, the South American carrier attributed the lower revenue to the region's weak economy, especially in Brazil, and the effect of currency devaluation, reported London's Air Cargo News.
However, this was partly offset by cost reductions, including the return of a leased Boeing 777-200 freighter along with eight passenger aircraft, and deferred deliveries of new aircraft including 12 Airbus A320neos and two Airbus A350s.
In the second quarter, the airline's Brazil arm reduced domestic capacity by 13.7 per cent, and slashed international routes between Brazil and the US by 35 per cent year on year. However, it strengthened its network in Chile, Peru, Argentina, Colombia and Ecuador.
Latam Airlines Chile start will start flying direct between Santiago and Los Angeles in the fourth quarter, while Latam Airlines Peru will connect its Lima hub with Barcelona by the end of the year and with Cartagena, Colombia in January 2017.
Aside from the 22.3 per cent decline in cargo revenues and the 13.7 per cent decline in passenger income, the South American carrier attributed the lower revenue to the region's weak economy, especially in Brazil, and the effect of currency devaluation, reported London's Air Cargo News.
However, this was partly offset by cost reductions, including the return of a leased Boeing 777-200 freighter along with eight passenger aircraft, and deferred deliveries of new aircraft including 12 Airbus A320neos and two Airbus A350s.
In the second quarter, the airline's Brazil arm reduced domestic capacity by 13.7 per cent, and slashed international routes between Brazil and the US by 35 per cent year on year. However, it strengthened its network in Chile, Peru, Argentina, Colombia and Ecuador.
Latam Airlines Chile start will start flying direct between Santiago and Los Angeles in the fourth quarter, while Latam Airlines Peru will connect its Lima hub with Barcelona by the end of the year and with Cartagena, Colombia in January 2017.
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