Home » Financial » Currently Reading:

LATAM Airlines Group reports consolidated operating income of $US147 million for first quarter of 2014

May 15, 2014 Financial No Comments Email Email

LATAM Airlines Group S.A. (NYSE: LFL; IPSA: LAN; BOVESPA: LATM33), the leading airline group in Latin America, announced this week its consolidated financial results for the first quarter ended March 31, 2014. “LATAM” or “the Company” makes reference to the consolidated entity, which includes passenger and cargo airlines in Latin America.

All figures were prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in U.S. dollars. The Brazilian real / US dollar average exchange rate for the quarter was BRL 2.36 per USD. 

LATAM Airlines Group reported operating income of US$146.7 million for first quarter 2014 excluding non-recurring costs related to fleet 250x250restructuring. The increase of 28.5 per cent as compared to the first quarter 2013 was driven by strong improvements in the results of LATAM’s passenger operations in most markets, especially in the Brazilian domestic operations, offset by the 18.5 per cent depreciation of the Brazilian real over this period as well as by weaker results in the cargo business. Operating margin excluding fleet restructuring costs reached 4.6 per cent, an increase of 1.2 points compared to 3.4 per cent in 2013. 

LATAM Airlines Group’s net income reached US$80.7 million for first quarter 2014, excluding non-recurring costs related to fleet restructuring, compared to net income of US$42.7 million for the same period 2013. 

Having concluded a thorough review of its post-merger fleet plan and fleet requirements, and the changes in the competitive environment, the Company is undertaking a broad fleet restructuring plan with the aim of reducing the number of models operated, phasing out less efficient models and allocating aircraft best suited to each one of its markets.  As a result, the Company expects to redeliver a significant number of aircraft between 2013 and 2016, and to fully phase out its Airbus A330s, A340s, Boeing 737s and Q400s. During the first quarter of 2014, LATAM has provided for estimated penalties related to anticipated redeliveries and other redelivery expenses expected to be incurred as a result of this process, recognising non-recurring costs of US$147 million. Of this total amount, US$34 million are recorded as aircraft maintenance operating expenses and US$112 million are recognised as Other Non-Operating Costs. 

On March 31, 2014, TAM celebrated its official entrance into the oneworld alliance. This allows TAM to offer customers an improved network in regions that are most important to them, and represents a significant milestone for LATAM Airlines Group as it continues to develop its international connectivity.

For more information please visit www.lan.com. For more detail on first quarter results as well as management discussion and LATAM fleet plan pleaseclick here

Comment on this Article:







Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership

ADVERTISEMENTS

Elite Partnership Sponsors

ADVERTISEMENTS

Premier Partnership Sponsors

ADVERTISEMENTS

Official Media Event Partner

ADVERTISEMENTS

Global Travel media endorses the following travel publication

ADVERTISEMENTS

GLOBAL TRAVEL MEDIA VIDEOS