Latam Airlines , the largest air transport group in Latin America, reported a $ 114 million loss in the second quarter, impacted by higher fuel costs, as well as an impact from strikes in Chile and Brazil.
The outcome of Latam It is similar to the $ 138 million damage recorded in April-June last year and losses of $ 125 million estimated by analysts consulted in a Reuters poll.
In the meantime, Ebitdar – profit before tax, interest, depreciation, amortization and leasing of aircraft – dropped by 14.3% to $ 381 million. In the period, fuel costs rose by 34.3% on an annual basis, according to the company.
As expected, the performance in the three months to June was also influenced by a crewman strike in Chile and an extensive paralysis of truck drivers in Brazil, the group's main market.
During the period, the company also had an impact of USD 79 million due to an unfavorable exchange rate effect, mainly due to the depreciation of the Brazilian real.
The company's revenue, located in Santiago and operational units in Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay and Peru, rose by 3.7% in the second quarter to 2.357 billion dollars.
The operating margin in the second quarter reached only 0.3 percent.
With the quarterly result, Latam accumulated losses of $ 20 million in the first six months of the year, corresponding to the $ 72 million of losses recorded in the same period of 2017.
The group reduced its operating margin forecast for this year to between 6.5 and 8 percent, from an earlier forecast of 7.5 to 9.5 percent.