LATAM records another cargo revenue decline

LATAM recorded another decline in cargo revenues and volumes as weak South American economic performance continued to take its toll on the airline group.
The Chilean-headquartered airline saw third-quarter cargo revenue decline by 24.5% year on year to $310m driven by a 12.2% year-on-year decline in cargo traffic to 908m cargo revenue tonne km.
“During the quarter, cargo demand remained weak, especially in the Brazilian domestic and international market,” LATAM said.
“In addition, connecting cargo traffic in Sao Paulo Guarulhos airport was affected by an ongoing strike in customs personnel.”
The news was no better in the pricing department as cargo revenues per available tonne km (ATK) for the period slipped by 24.2% on last year to $0.17 per ATK.
While demand for the period was down, the airline increased capacity as new passenger aircraft were brought on stream and as a result its cargo load factor slipped to 51.4% from 58.6% for the third quarter of last year.