LATAM cargo revenues and volumes slide in Q3
11 / 11 / 2016
Cargo revenues at the LATAM Group continued to decline during the third quarter of the year as a result of a decline in traffic and yields.
The South American carrier recorded total cargo revenues of $266m during the third quarter compared with $310m during the same period in 2015.
The decline was caused by a 9.2% year on year decline in traffic to 824m revenue tonne km and an 8.6% drop in revenues per available tonne km to $0.16.
However, yields were up compared with the second quarter driven by “an improvement in imports from North America and Europe to Brazil, as a result of the appreciation of the Brazilian Real. Exports to North America were impacted by lower production in the salmon industry".
The carrier’s cargo load factor continued to decline against last year, reaching 49.6% compared with 51.4%.
This decline came despite a reduction in overall cargo capacity of 5.9%, with freighter capacity down by 16.4%.
Since the end of last year, the carrier has taken one of its Boeing 767-300Fs out of action. In total, the carrier’s freighter fleet now stands at seven B767-300Fs and three B777-200Fs. It is also leasing three B767-300Fs and one B777-200F to a third party.
Next year, the carrier is planning to withdraw a further B767-200F and also a B777-200F.