LATAM Airlines Group post 2015 net loss of US$219.3m

LATAM Airlines Group reported operating income of US$149.2m for the fourth quarter of 2015 and US$513.9m for full year 2015. Operating margin reached 6.2% for the quarter and 5.1% for the full year, slightly above the upper bound of the guidance provided by the Company and 1.0 p.p. above the operating margin reached during full year 2014. LATAM’s improved results were mainly driven by a significant reduction in operating costs due to lower fuel prices. Cost per ASK equivalent decreased by 20.5% as compared to fourth quarter 2014. LATAM reported a net loss of US$16.3m in the fourth quarter 2015, as compared to a US$98.3m gain in the fourth quarter 2014. This result in 2015 includes a one-time provision of US$71.0m related to aircraft redelivery costs, mainly associated with the phase out of the Airbus A330fleet expected to occur during 2016, as well as an exchange rate loss of US$57.1m related to the devaluation of the Argentinean peso and the Venezuelan bolivar. For full year 2015, LATAM reported a net loss of US$219.3m, compared to a net loss of US$109.8m in 2014. Non-operating results for 2015 include non-cash foreign exchange loss of US$467.9m, mainly resulting from the 49.0% devaluation of the Brazilian real during the year.