LATAM Airlines Group has announced its results for the third quarter of 2014, two and a half years after the merger between LAN Airlines and TAM SA.
Total revenue for the third quarter of 2014 totalled US$3,141.3 million compared to US$3,360.7 million for the same period in 2013, while the operating margin fell to 3.8 per cent compared to 7.6 per cent in 2013.
This reduction is primarily explained by a weaker macroeconomic scenario in Latin America, including slower GDP growth trends and weaker currencies in many countries.
Passenger and cargo revenues accounted for 83.9 per cent and 13.1 per cent of total revenues respectively.
Passenger traffic increased 2.1 per cent in the quarter, with passenger load factors reaching 84.5 per cent, representing an increase of 2.1 points compared to the same period in 2013.
In September, LATAM Airlines Group became the first airline group in the Americas to join the Dow Jones World Sustainability Index – the most important sustainability indicator in the world – for its continued efforts in social and environmental responsibility.
Furthermore, during the month of October, TAM and LAN transferred their international operations to the new Terminal 3 at Guarulhos International Airport in Sao Paulo, positioning the airport as the most important international hub in South America.
LATAM continues advancing with the restructuring of its fleet plan, retiring less efficient models and assigning the best suited aircraft to each one of the markets in which it operates, including the delivery of four Airbus A321 and four Boeing 787 Dreamliners.
These aircraft represent savings of more than ten per cent in unit costs compared to the current models. LATAM Airlines Group expects to complete the restructuring of its fleet by 2016, estimating a total investment of US $5.177 million dollars between 2014 and 2016.