LATAM Airlines Group has reported operating income of US$567.9 million for year to December 31st, 2016, an increase of 10.5 per cent compared with 2015.
Operating margins reached six per cent above full year 2015, and in line with the upper bound of the guidance provided by the company.
Net income reached US$69.2 million for the year 2016, compared to a net loss of US$219.3 million for 2015, showing a positive net income for the first time since 2011.
At the same time, LATAM reported an operating margin of 7.6 per cent for fourth quarter 2016, an improvement of 1.4 per cent over the same quarter in 2015, and net income of US$54.3 million, a US$70.6 million improvement over the fourth quarter 2015.
The improvement in operating results was driven by a 6.7 per cent increase in total revenues, reflecting a positive revenue per ASK trend in domestic and international routes in Brazil as well as a stronger Brazilian currency.
Total revenues in fourth quarter 2016 reached US$2,569.3 million showing an improvement of 6.7 per cent, mainly driven by an increase of 6.9 per cent in passenger revenue, after nine consecutive quarters of decline.
This revenue improvement consolidates and further improves third quarter’s positive trend in revenue per ASK.