LATAM posts $49.7m net income in Q2

Washington DC
Source:
This story is sourced from Pro
See more Pro news »

LATAM Airlines Group has posted $49.7 million in net income in the second quarter, in the group's first consolidated financial results since a merger between LAN and TAM was completed on 22 June.

The group posted an operating income of $23.2 million and a 1.5% operating margin for the three months ended 30 June.

LATAM's total operating revenue for the second quarter was $1.59 billion, while expenses were $1.56 billion.

LATAM expects to receive 12 Airbus A320 aircraft in the remainder of 2012, as well as eight Boeing 767-300s, four Boeing 777-300s and its first three Boeing 787-8 Dreamliners. LATAM will also add two Boeing 777 freighter aircraft to its fleet.

For the second quarter, LAN alone posted a 67.5% fall in net profit to $5.19 million. Operating revenue grew 8.5% to $1.44 billion while operating expenses grew 10.3% to $1.41 billion. Its operating income fell 33.5% to $37.1 million.

TAM posted a second quarter net loss of 928 million Brazilian reais ($458 million), compared to a net profit of 60.3 million reais a year ago. Operating revenue grew 5.8% to 3.23 billion reais while expenses grew 15.5% to 3.51 billion reais. TAM posted an operating loss of 284 million reais.

LAN's passenger traffic grew 16% in the quarter, while capacity was up 9.6%. Passenger numbers rose 19.3% to 6.06 million while the load factor grew 4.5 percentage points to 82.1%. Revenues per available seat kilometre (RASK) rose 4.4% to 8.3 cents.

TAM's passenger traffic declined 0.7%, while capacity was down 0.9%. Passenger numbers fell 5.6% to 9.09 million, and the load factor grew 0.1 percentage point to 74%. TAM's RASK grew 14.3% to 14.7 Brazilian cents.