Facing macroeconomic challenges, particularly from the weak Brazilian domestic market, the recently re-branded South American carrier LATAM saw cargo revenue decrease by 21.3 percent in the second quarter, driven by a 12.5 percent decline in cargo traffic and a 10.1 percent decline in cargo yields, as compared to Q2 in 2014. Cargo revenue for the quarter was US$334 million compared to $425 million in 2014. RTK dropped to $919 million from $1,050 million y-o-y for the second quarter, with a -6.7 percent change in load factor.
An eight-day customs strike at the Santiago customs office stopped cargo traffic in Chile during the quarter, and cargo demand was weak, especially where Brazil is concerned. Available tonne kilometers declined 1.3 percent, which included a 7.1 percent reduction of the freighter operations. For the six month period ending June 30, cargo revenue decreased from $845 million in 2014 to $684 million in the first half of 2015.
In the second quarter the carrier transported 242,000 tonnes of cargo compared to 270,000 in 2014, down 10.3 percent. Year to date, for the six months ending June 30, 2015, 479 tonnes of cargo were transported by the group compared to 543 tonnes for the first six months of 2014.