LATAM Airlines, cutting capacity in Brazil to cope with weak economy, unveils new image
LATAM Airlines Group is cutting capacity in Brazil, its biggest market, to cope with the country’s struggling economy, but nevertheless unveiled Thursday its first brand update since its 2012 merger. The company has already reduced flights in Brazil and slashed plans to buy new planes. It cut capacity in Brazil’s domestic market by 2.5% last year and expects to reduce it by another 8% to 10% this year, according to Enrique Cueto, LATAM’s CE. Brazil’s economy is forecast to shrink 3.9% this year, after contracting 3.8% in 2015, and the Brazilian real lost about 30% of its value against the dollar last year. That combination hit demand for travel and pushed up local-currency costs, Cueto explained, adding that he expects Brazil’s economy to be weak for another 2 years. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-04-29/oneworld/latam-airlines-cutting-capacity-in-brazil-to-cope-with-weak-economy-unveils-new-image
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LATAM Airlines, cutting capacity in Brazil to cope with weak economy, unveils new image
LATAM Airlines Group is cutting capacity in Brazil, its biggest market, to cope with the country’s struggling economy, but nevertheless unveiled Thursday its first brand update since its 2012 merger. The company has already reduced flights in Brazil and slashed plans to buy new planes. It cut capacity in Brazil’s domestic market by 2.5% last year and expects to reduce it by another 8% to 10% this year, according to Enrique Cueto, LATAM’s CE. Brazil’s economy is forecast to shrink 3.9% this year, after contracting 3.8% in 2015, and the Brazilian real lost about 30% of its value against the dollar last year. That combination hit demand for travel and pushed up local-currency costs, Cueto explained, adding that he expects Brazil’s economy to be weak for another 2 years. <br/>
