Latam Airlines reports operating income of $ 256 million

Latam Airlines Group, led by airlines Lan and Tam, reported operating
income of $ 256 million in the last quarter (July-September) and net
income of $ 52 million (versus a loss of $ 49.2 million in the same
period in 2012).The Group’s revenue in the three months was $ 3.36 billion, with a growth of only
0.8 % in revenue generated by passengers and 1.9 % in the number of
passengers carried. Cargo revenue fell 2.6 %. The cost of the group stood at $ 3.1 billion.Spending on paying commissions to travel agencies and freight increased 4.9 % in
the quarter, despite a 6% drop in cargo sector (spending on
commission in passenger segment grew by 6.2 % ).According to the company statement, the synergy and efficiency initiatives, as
fruits of integration between the two airlines, the significant
improvement in Brazil ‘s domestic operations, and streamlining the
growth of international passenger operations were the main reasons
leading to outcome. Operating margin of 7.6 % is also a direct result .On the domestic operations of Tam, the statement highlights the RASK
increased by 19 % (in dollars) in the third quarter and hit the home
occupation of 81.6. The offer in the quarter fell 6 % in and for the it might be between

 7% and 9% . There was also improvement in yields”
All this, added to the cost initiatives implemented in Brazil, led to
substantial improvement in the profitability of domestic Tam’s operations, reports the company.Tam highlights in the international segment, the decision to concentrate in
Guarulhos the long distance flights from South America, which led to the
reduction of flights at other airport , as Galeao in Rio. The
company also discontinued ten old A33, which were replaced by 767
belonging to Lan’s fleet, and besides spending less, offers a
better product in executive class with a flat bed . The
agreement with American Airlines was also highlighted as a factor that granted Tam
better competitiveness in the international market in Brazil and the group
in general.The statement also says that the Latam handled to implement a highly effective
strategy to reduce operational exposure in regards to the volatility of
the Brazilian currency through operational measures, such as,
financial covenants .