Latam Airlines Q1 profit down

Santiago: Lata Airlines Group SA’s first-quarter net profit skidded to $42.7 million, or nearly half of a year earlier, on foreign exchange fluctuations, a drop in cargo revenue and the grounding of its three Dreamliners, the company said on Tuesday.

The carrier, which is the fruit of Chilean LAN’s takeover of Brazil’s TAM in June, said in a statement to Chile’s securities regulator that its net profit fell 43.8 per cent from $76.1 million in the year ago period.

But Latam Airlines said that on a pro forma basis, which simulates a combined 2012 first quarter profit for both carriers, net income dropped 48.9 per cent from $83.7 million.

TAM benefited from a foreign exchange gain in the first quarter of 2012, the LATAM Airlines said.

A Reuters poll had forecast Latin America’s largest carrier would post a 54.6 perc ent tumble in net profit to $38.2 million.

Revenue in the January to March period increased 1.5 per cent to $3.409 billion, compared to pro forma revenue of $3.360 billion in first quarter of 2012.