Latin American airlines,
LATAM Airlines Group S.A.
), together with its subsidiaries, came out with its air traffic
update yesterday for the month of December 2012 in comparison
with the year-ago month.
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The company's passenger traffic in December 2012 increased 10%
while capacity rose by 7.4%. Of the total, Brazilian domestic
passenger traffic registered a 10.5% increase along with a
capacity decline of 3.7% while non-Brazilian domestic passenger
traffic recorded a 10.6% hike as capacity rose by 11.6%. In the
international arena, capacity increased a whopping 15% and
passenger traffic shot up 9.6%.
Considering the load factor, the airlines' witnessed a 1.8 point
increase in the month of December; with overall load factor
coming to 78.2%. Passenger load factor for Brazilian operations
spiked 10.5 points to 81.9% while non-Brazilian passenger load
factor decreased by 0.7 points to 78.1%. International passenger
load factor decreased by 3.7 points to 75.7%.
In addition to the passenger traffic statistics, LATAM also
released its cargo traffic details for the month of December
2012. Cargo traffic rose 3.1% while capacity increased 5.5%. Load
factor at 61.3% represented a 1.4 point decrease.
LATAM Airlines Group S.A. is one of the leading South American
passenger and cargo air transportation service providers. The
company was the result of the merger between LAN Airlines S.A.
and TAM S.A.
The current Zacks Consensus Estimate for the fourth quarter 2012
is 20 cents while that for 2012 and 2013 are 41 cents and $1.01,
respectively; reflecting year-over-year decline of 56.4% for 2012
and increase of 146.9% for 2013.
LATAM Airlines Group currently carries a Zacks Rank #5 (Strong
Sell) while its peer companies,
Delta Air Lines Inc.
GOL Linhas A
) bear a Zacks Rank #3 (Hold).