13-Aug-2012 3:28 PM

LATAM Airlines Group operating profit halved in 2Q2012

LATAM Airlines Group reported (10-Aug-2012) the following financial highlights for LAN and TAM airlines for the three months ended 30-Jun-2012:

  • Operating revenue: USD1584 million, +19.0% year-on-year**;
    • LAN: USD1445 million, +8.5%;
    • TAM: BRL3231 million (USD1652 million), +5.8%;
  • Operating costs: USD1561 million, +22.4%;
    • LAN: USD1408 million, +10.3%;
    • TAN: BRL3515 million (USD1798 million), +15.5%;
  • Operating profit (loss): USD23.2 million, -58.4%;
    • LAN: USD37.1 million, -33.5%;
    • TAM: (BRL284.2 million) (USD145.3 million), compared to a profit of BRL8.8 million (USD4.5 million) in p-c-p;
  • Net profit (loss): USD49.7 million, +211.8%;
    • LAN: USD5.2 million, -67.5%;
    • TAM: (BRL928.1 million) (USD474.7 million), compared to a profit of BRL60.3 million (USD30.8 million) in p-c-p;
  • Passenger numbers:
    • LAN: 6.1 million, +19.3%;
    • TAM: 9.1 million, -5.6%;
  • Load factor:
    • LAN: 82.1%, +4.5 ppts;
    • TAM: 74.0%, +0.1 ppt;
  • Passenger yield:
    • LAN: USD 10.1 cents, -1.4%;
    • TAM: BRL +14.1%;19.9 cents (USD10.2 cents), 
  • LAN Cargo:
    • Cargo volume: 220,000 tons, +1.9%;
    • Cargo load factor: 69.6%, +0.7 ppt;
    • Cargo yield: USD 43.7 cents, -3.9%;
  • Total assets: USD19,642 million;
  • Cash and cash equivalents: USD457.5 million;
  • Total liabilities: USD14,379 million;
  • FY2012 forecast:
    • Capacity (ASKs): +3% to +4%;
      • Domestic: -2% to -3%;
    • LAN Cargo capacity (ATKs): +3% to +5%. [more – original PR]

*Based on the average conversion rate at USD1 = BRL1.9552 for the period
**Combined results for LAN for 2Q2012 and for TAM (23-Jun-2012 to 30-Jun-2012)

LATAM Airlines Group: “Overall, we are optimistic about the opportunities we see for LATAM Airlines Group. Passenger demand continues to be strong in most of South America and on international routes, as reflected in LAN’s strong traffic growth and high load factors for the second quarter 2012. The Brazilian domestic market is operating with capacity discipline, providing the basis for improved profitability in that market. In the cargo business, although we continue to face reduced demand on import routes into South America, demand on northbound routes remains strong. We remain confident that the announced USD600 million to USD700 million in synergies are achievable, and that we will begin to see the positive results of the business combination in the third quarter 2012.” Source: Company statement, 10-Aug-2012.

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