LATAM Airlines' (LTM) Q4 Earnings Beat, Revenues Miss Mark
Zacks Investment Research | Mar 10, 2020 11:03PM ET
LATAM Airlines Group’ (NYSE:LTM) fourth-quarter 2019 earnings of 37 cents per share surpassed the Zacks Consensus Estimate of 24 cents. In fourth-quarter 2018, the company reported earnings of 25 cents. The year-over-year improvement was partly due to the 10.6% decrease in average fuel price per gallon.
Total revenues increased year over year but missed the Zacks Consensus Estimate by 2.1%. The year-over-year improvement was owing to a 6.5% rise in passenger revenues, which accounted for 86.3% of the top line. During the quarter, LATAM Airlines carried 19.95 million passengers, up 9.4% year over year. The uptick was mainly due to strong performances at the carrier’s domestic markets. Cargo revenues, however, declined 10.3% in the quarter partly due to the sale of MasAir in the second half of 2018.
Operating expenses increased 3.1% year over year. However, fuel costs decreased 10.6% despite a 3.2% rise in fuel consumption. Excluding fuel costs, cost per available seat mile (CASK) increased 6.7% due to higher maintenance and depreciation expenses, capacity adjustments in international routes and a shorter average stage length. Load factor (% of seats filled by passengers) decreased 20 basis points to 82.9% as consolidated traffic growth (3%) was outpaced by capacity expansion (3.2%). Revenue per ASK improved 3.1%.
LATAM Airlines Group S.A. Price, Consensus and EPS Surprise
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