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LATAM sees less demand on Latin American routes

By control on August 21, 2013

LATAM Airlines Group’s cargo revenue grew by 1.7 percent in the second quarter compared to the second quarter of 2012.

Revenue from cargo was 363,541 euros (US$486,527) during the second quarter of 2013.

There was a 3.3-percent increase in cargo traffic with a 1.5-percent decrease in yields. Capacity increased by 3.2 percent.

The increase in cargo traffic was mainly driven by delayed seasonal demand, but the decrease in yields reflects a decline in demand on routes to Latin America, especially imports into Brazil.

Two new Boeing 777 freighters incorporated during the second half of 2012 accounted for the capacity increase during the second quarter of 2013. There was also additional belly capacity with new wide-body aircraft in LATAM’s passenger operations.

The second quarter marks the first anniversary of the merger between LAN Airlines and TAM.

“We are satisfied with our progress during the first 12 months since the merger was completed, and can highlight important milestones achieved during this period, including the integration of most corporate functions and of the commercial areas of both cargo and international passenger operations,” LATAM management said.

LATAM has modified its fleet plan for 2012-2015, reducing the number of aircraft deliveries by 22 planes.