LATAM Airlines Group S.A. has announced its consolidated financial results for the second quarter ending June 30th, 2014, in which it reported operating income of US$15.4 million with an operating margin of 0.5%, representing a decrease of 0.8% as compared to the second quarter 2013. LATAM attributed its results this quarter to reduced passenger and cargo demand during the FIFA World Cup soccer tournament held in Brazil, as well as by very week seed exports in the cargo business.
LATAM transported almost 3 million passengers in the domestic markets with more than 1,100 extra domestic and international flights, maintaining an on-time performance of 95%.
LATAM’s net loss reached US$58.9 million for the second quarter 2014, compared to a net loss of US$329.8 million for the same period 2013.
LATAM reduced capacity in both passenger and cargo operations with reductions of 1.5% and 7.5% respectively during the second quarter 2014, as compared to the same period of the previous year. Passenger load factors continue to increase in all markets, reaching record levels at 82.4% and driving higher RASK.
Enrique Cueto, CEO of LATAM Airlines Group, said: “The significant infrastructure investments in Brazil prior to the World Cup, especially in airports, will have a lasting and very positive impact on the continued development of the airline industry in Brazil. TAM’s move to Terminal 3 at Guarulhos Airport and to Pier 2 at the Brasilia airport will enable us to continue improving connectivity through our hubs, and increasing on time performance.”
LATAM reports Q2 results
