LATAM Airlines Group posts $66m Q1 net profit

LATAM Airlines Group reported a Q1 2017 net profit of US$65.6m, down 35.9% from the company’s $102.2m net income in 1Q 2016. Operating revenue for the quarter increased 6.4% year-over-year to $2.5b. LATAM attributed the increase to the company’s capacity management combined with stronger local currencies, particularly in Brazil. Total expenses increased 10.3% YOY to $2.3b as fuel and labor costs rose 29% and 7.5%, respectively YOY. The Santiago, Chile-based carrier has decreased its workforce headcount by 12.4% since the 1Q 2016 as part of the company’s cost efficiency transformation. LATAM Group’s operating income for the quarter fell 30.5% YOY to $152.3m; the company’s operating margin for the quarter was 6.1%, down 3.3 points from Q1 2016. “We are in the middle of transforming LATAM and [are] improving the value proposition for our clients with the renewal of the domestic flight model,” LATAM Airlines Group CEO Enrique Cueto said. “While we still have a lot of work to do, we are off to a solid start.”<br/>