Chile’s LATAM Airlines has posted a $60 million loss in its Q1 2019 financial results - which the airline has blamed on strong US dollar and weak demand from Argentina.
The recent results are down from $92 million profit in the same period last year.
Its total revenues decreased 7.5% year on year in the first quarter of 2019, as passenger revenue declined 6.5% and cargo revenues decreased 10.9% - also influenced by greater depreciation of regional currencies- resulting in lower imports to the region, especially to Brazil and Argentina.
The airline said its total operating expenses declined 0.7% in the same quarter last year, despite an increase of 6.7% in total ASKs.
Excluding fuel costs, total operating costs declined 2.6% from the same period last year, cost per ASK decreased 6.9% year-over-year, while costs per ASK excluding fuel decreased 8.7% year on year, reflecting a leaner and more efficient organisational structure.
In response to weak demand from depressed Argentina, which is struggling with rampant inflation, LATAM said it had cut two international routes there and was in the process of cutting two more.