IATA AGM 2013: Aerolineas Argentinas expects USD250 million loss for 2013

Aerolineas Argentinas CEO Mariano Recalde told (03-Jun-2013) CAPA on the sidelines of the IATA annual general meeting that the carrier expects to significantly reduce its losses in 2013 and 2014. The flag carrier has continued to struggle financially in recent years, incurring losses of roughly USD2 billion since renationalisation in 2008. Mr Recalde says the original plan called for the return of profitability in 2013 but this became unachievable after the ash cloud crisis, which impacted operations starting in 2011. Mr Recalde says the carrier incurred a net loss of USD500 million in 2012 on revenues of USD1.6 billion. He says the current forecast for 2013 envisions a loss of USD250 million on revenues of over USD2 billion. The CEO is confident the carrier's financials will further improve 2014. Mr Recalde says under the carrier's current five-year business plan Aerolineas will continue to focus on domestic and narrowbody expansion.