LATAM Airlines\u2019 cargo business, along with the regional economy, got pounded in 2016, and the latest January numbers suggest that the beleaguered Santiago-based carrier isn\u2019t out of the woods yet, despite a 1.9-percentage-point increase in its cargo load factor. According to the carrier\u2019s monthly report, out yesterday, revenue tonne kilometers fell 2.4 percent, year-over-year, to 281 million.
\nOne sign that LATAM is taking a proportional response to the decline is its move away from freighter flights and towards belly capacity, which the carrier was carrying out throughout the latter half of 2016. LATAM reduced its third quarter 2016 freighter operations by 16.4 percent over 3Q 2015.
\nFinal statistics for 2016 aren\u2019t due until this March, but 3Q 2016 cargo revenues decreased by 14.3 percent, y-o-y, driven by a 9.2 percent decline in cargo traffic and a 5.6 percent decline in cargo yields, compared to 3Q 2015. The same quarter saw y-o-y cargo revenues per ATK decline by 8.9 percent.
\nThe carrier continues to face strong headwinds that depress its results, as the regional economy, led by former powerhouse Brazil, remains in the doldrums. With the impeachment of former Brazilian President Dilma Rousseff, the country\u2019s turbulent economic situation was compounded by political instability and seemingly endless evidence of corruption at the highest levels.
\nDespite the assurances of Fabio Kanczuk, the secretary of economic policy for Brazil\u2019s Finance Ministry, the outlook remains gloomy. Brazil\u2019s government lowered its forecast for economic growth from 1.6 percent to 1.0 percent in 2017, as the country struggles with its worst recession in at least eight decades.
\nFor carriers like LATAM, the tide won\u2019t turn until Brazil\u2019s consumers start buying imported products, and that won\u2019t happen until they have increasing incomes and consumer confidence. In the meanwhile, carriers will be flying in empty on their way to pick up agricultural exports routed to North American and European markets.
\nThose interested in learning more about air freight in 2017, should join us at Cargo Facts Asia in Shanghai, 25 \u2013 26 April. \u00a0To register, or for more information, go to\u00a0CargoFactsAsia.com
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"
LATAM Airlines\u2019 cargo business, along with the regional economy, got pounded in 2016, and the latest January numbers suggest that the beleaguered Santiago-based carrier isn\u2019t out of the woods yet, despite a 1.9-percentage-point increase in its cargo load factor. According to the carrier\u2019s monthly report, out yesterday, revenue tonne kilometers fell 2.4 percent, year-over-year, to[…]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[49],"class_list":["post-2185","post","type-post","status-publish","format-standard","hentry","category-news","tag-airport-code"],"_links":{"self":[{"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/posts\/2185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/comments?post=2185"}],"version-history":[{"count":0,"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/posts\/2185\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/media?parent=2185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/categories?post=2185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.actlogistics.vn\/en\/wp-json\/wp\/v2\/tags?post=2185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}