LATAM Airlines Group continues to build network utility as currency pressure remains an overhang

Currency pressure continues to be the norm for LATAM Airlines Group as the company faces currency devaluation in many of the countries where it retains a significant presence. The challenges created by the currency devaluations are now well documented, and are pressuring the company's unit revenue results.

LATAM is obviously working to combat the pressure created by devaluations in most of the South American countries where it operates, including attempts to change point of sale mix and a focus on regions where stronger demand can offset some of the weaker areas within its network.

Brazil remains a challenging market for LATAM and numerous other airlines, particularly due to the decline in the country's corporate demand. But despite the continuing weakness in the country's domestic and international markets, LATAM continues to flesh out its Brazilian network, and plans to build a new hub in the country's Northeastern region.