LATAM Airlines Announces Operating Results for First Quarter 2015

LATAM Airlines Group has announced its operating results for first quarter 2015. Operating income has reached US$227 million, an increase of 102 per cent over the US$113 million in the same period last year.

Operating margin climbed from 3.5 per cent in 2014 to 8.1 percent this year for the South American group. The company also registered a 16 per cent reduction in operating costs.

Cost per ASK equivalent dropped by 17 per cent, also due to the effect of lower fuel prices.

LATAM announced a net loss of US$40 million in the first quarter of 2015, similar to last year's US$41 million loss over the same period last year.

Non-operating losses were caused by a foreign exchange loss of US$205 million, mostly due to the 20 per cent devaluation of the Brazilian real during the quarter.

The company ended the first three months of 2015 with 85.8 per cent of its flights on time, an increase of 3.9 per cent over the first quarter of last year.

In line with LATAM's aim to create the best connectivity to, from and within South America, the company revealed last month that it began a study of feasibility to create a new hub in Northeast Brazil.

Claudia Sender, chief executive of TAM said: "The project plans to increase the capillarity of the Group in Brazil, South America, and worldwide, especially by increasing its network of destinations in Europe.

"It will also strengthen the group's leadership in Latin America, add connectivity opportunities for customers and improve coverage of passenger and cargo flows between Brazil and international markets."