Q4 net profit was US$98.3 million against a year-on-year net loss of US$46.1 million. This result includes a foreign exchange loss of US$90.3 million mostly in consequence of the devaluation of the Brazilian real during the quarter. The airline reported a strong improvement in operating profit in Q4, reaching US$267 million, a year-on-year increase of 13.7 per cent.

For full year 2014, LATAM reported an operating income of US$513.4 million, compared to $643.9 million in full year 2013. Operating margin for 2014 reached 4.1 per cent compared to 4.9 per cent in 2013.

There was a 4.7 per cent decrease in cargo revenues and 10.9 per cent decrease in passenger revenue, offset by a 48.6 per cent increase in other revenues. Cargo revenue accounts for 14.7 per cent of total revenue in fourth quarter. As cargo revenue decreased, the airline cut capacity 3.6 per cent, resulting in a load factor of 62.3 per cent, which represents an improvement of 0.4 per centage points compared to the fourth quarter 2013.

“Despite the weakness in cargo trends mainly due to the slowdown in imports into Latin America and competitive pressures from regional and international cargo carriers, various initiatives allowed us to control yields,” said a company statement.

 “As a result, cargo yields decreased only 1.8 per cent, which also incorporates the 11.9 per cent depreciation of the Brazilian real in the domestic Brazil cargo market. During the quarter and in line with the company’s approach towards a more rational and disciplined freighter capacity, the company materialised the lease of two of its 767-300Fs to another cargo operator in a different market for a period of three years. An additional 767-300F was also leased to this same operator starting in 2015,” the statement said.