Santiago . LATAM Airlines, the largest air transport group in Latin America, reported a US $ 125 million loss in the second quarter due to an increase in fuel costs and continued weakness in operations in Brazil, according to a Reuters poll on Friday.
The estimate for LATAM, which represents the average forecast of five stockbrokers, is also favorable compared to the losses of USD 138 million recorded between April and June of last year.
"Given the sharp rise in the price of fuel, we estimate significant cost growth," Bci said in a report.
Respondents predicted an increase of nearly 30% in costs, further pressured by negative effects of the exchange rate in the light of a depreciation of the regional currencies against the dollar.
The quarterly estimate would give the company a positive start to the year and losses of US $ 31 million in the first six months, which is comparable to losses of US $ 72 million in the same period of 2017.
In this line EBITDAR – profit before tax, interest, depreciation, amortization and leasing of aircraft – would have decreased by 11.5% to US $ 394 million.
Meanwhile, revenues would have risen slightly by 4.3% to US $ 2.372 million, as positive performance on international routes would have been partly offset by "a more unfavorable macroeconomic scenario" and greater uncertainty in Brazil (the largest group market), reflected in the strong depreciation of the real, "added Bci.
The analysts also stressed that the results were influenced by a crewman strike in Chile and an extensive paralysis of truck drivers in Brazil. a negative impact of approximately US $ 25 million and US $ 13 million respectively, according to Bice Inversiones.
With the quarterly estimate the company would roll back a positive start to the year and accumulate losses of US $ 31 million in the first six months, which is comparable to losses of US $ 72 million in the same period of 2017.
LATAM – which plans to follow up the results nth week – has operational units in Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay and Peru.