LATAM Cargo reports a 10.2 per cent drop in cargo revenues in the second quarter 2019, reaching USD 269.3 million which comprises 11.4 per cent of the carrier’s total operating revenue for the quarter.
LATAM says the decline was partially a result of currency devaluation and the sale of its former Mexican subsidiary MasAir in the second half of 2018 that reduced its cargo revenues by approximately USD 10 million.
Excluding MasAir, cargo yield declined by 4.6 per cent while load factor rose 1.3 percentage points to 55.8 per cent. As a result, cargo revenues per ATK declined by 2.2 per cent in comparison to the same quarter of the previous year.
LATAM says import markets continued to show declines year-on-year, especially to Brazil and Argentina, driven by weaker currencies and general economic uncertainty. On the other hand, export markets continue improving, especially salmon from Chile, it adds.
In the second quarter of 2019, LATAM Airlines Group reported an operating income of USD 40.2 million and an operating margin of 1.7 per cent. The Company’s net result improved by USD 144.9 million year-on-year to a USD 62.8 million net loss in second quarter 2019.
Total LATAM Group revenues in the second quarter for 2019 totalled USD 2.37 billion, compared to USD 2.357 billion in second quarter 2018, representing a 0.5 per cent growth.