LATAM raises 2017 operating margin guidance on minimal capacity growth

LATAM Airlines Group is estimating its 2017 operating margin will be in the 6%-8% range in 2017, a 1.5 point boost over the company’s 2016 range of 5.5%-6.5%, according to LATAM’s preliminary guidance for 2017 released Dec 19. The airline group estimates the Group’s company-wide full-year 2017 capacity growth will be between 0% and 2%; up one point from between a 1% contraction and a 1% gain in 2016. International capacity will grow between 0% and 2%, a 3 point decrease from 2016. Brazilian domestic capacity will decrease between negative 2% and 0%, a 10 point decline in capacity cuts compared to 2016. For LATAM’s domestic services in Spanish-speaking countries, the Group plans to increase capacity between 4% and 6% in 2017, down 2 points from 2016. <br/>