CARGO revenues at LATAM slumped by 10.8 per cent during the fourth quarter of 2013 as a result of a four per cent decline in traffic and a 7.1 per cent drop in yield.
The situation remains weak amid competitive pressures from regional and international competitors, says the company.
The yield decline was caused in part by the negative impact of a 10.6 per cent depreciation of the Brazilian real during the period, on cargo revenues earned in the Brazilian domestic market.
“The company continues with a rational and disciplined approach towards freighter capacity utilisation, in line with a still challenging and competitive scenario in Latin American cargo markets, while focused on maximising the belly utilisation of the company’s passenger fleet,” says a statement.
In November, the airline cancelled the delivery of one B767 freighter, thus reducing its overall cargo capacity by 6.2 per cent during the quarter.
The statement reveals that LATAM expects cargo ATKs to decrease by up to two per cent in 2014, driven by the further rationalisation of its cargo operations.
