Latam Airlines, the largest airline in Latin America, said on Tuesday it would reduce its fleet commitments by $ 2.3 billion between 2018 and 2021 to improve the efficiency of operations.
The company, based in Santiago, Chile, explained that this adjustment would imply a 41% reduction in investment in a previous fleet plan.
"A few years ago, the company did not make such a great effort to adjust its plan. It is important that … we have a much better investment path compared to the macroeconomic context," said Ramiro Alfonsín, vice president of the airline's finances.
The company said that cost control comes in a period of increased pressure on fuel prices, as in the third quarter. Between July and September, Latam posted a $ 53 million profit, down 67% from last year.
"The third quarter was very challenging for the company as a whole," said Alfonsin. "We retention costs, which will allow the company to compete in all planned segments.
In reviewing the planning, Latam has forecast to achieve an operating margin between 6.5% and 8% this year.
(De Antonio de la Jara)
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