LATAM Airlines reported a slightly smaller profit than expected in the first quarter as local currency appreciation and inflation raised costs, the company reported on Monday. The airline, which was formed via a 2012 tie-up of Chile's LAN and Brazil's TAM, said net income was $66m in the three months to end-March, lower than a Reuters forecast for $71.9m. That represented a fall in net income from Q1 2016, when the company reported a profit of $102m. The company's EBITDAR margin, which is used to measure airlines' profitability and cash flow, also fell slightly in yearly terms to 22.4% from 25.4% in Q1 2016. LATAM's operating revenues, however, increased 6.4% in yearly terms to $2.477b. The company said currency appreciation that raised costs also helped raise income. The airline said it was maintaining its previous guidance for a 2017 operating margin of between 6 and 8%, as well as a previously announced reduction in its 2016-2018 fleet commitment by $2.2b.<br/>