Chile's LATAM Airlines posts $63m loss, dragged by Argentina recession

Chile’s LATAM Airlines Group posted a narrower loss of $63m in Q2, boosted by growing revenue in Brazil but dragged down by a recession in Argentina. The loss was a significant reduction compared to the same period last year, when it posted a $206m loss, at the time dragged down by a weak currency in Brazil and a truck drivers strike. The domestic air travel market in Brazil became more concentrated in the quarter after Avianca Brasil ceased operations in late May following a bankruptcy filing. This has left Brazil with just three major airlines competing for domestic flights. LATAM was widely expected to benefit from Avianca Brasil’s demise. Its revenue in Brazil grew almost 20% to $878m between April and June, compared to a year earlier. Still, LATAM’s results were negatively affected by a financial crisis in Argentina that keeps dragging on. Revenues there almost halved to $135m in the quarter, compared to $260m a year ago. LATAM and its regional rivals have also been affected by weak currencies in both Brazil and Argentina.<br/>