Latam Airlines says they'll be profitable in Brazil despite challenging economy
Skift Take
Latam, the result of a merger between South American airlines Lan and Tam, is probably hoping to weather the economy for two years and then come out on top as business picks up for the World Cup.
Latam Airlines Group SA, the world’s most valuable carrier created by Lan Airlines SA’s tie-up with Tam SA, said it can operate profitably in a market as “unbelievably expensive” as Brazil and meet savings goals.
Latam will use Lan’s expertise in managing networks to help contain costs in Brazil, Lan Chief Executive Officer Ignacio Cueto said. Tam, Brazil’s top airline by market share, lost 363 million reais ($214 million) in the past 12 months as Brazil’s economy grows at the slowest pace in three years.
“We know very well that the situation in Brazil is difficult and there’s a reason why aviation there in the last 20 years has had problems making money,” Cueto said yesterday in an interview from his Santiago office. “For their authorities it’s hard to understand how expensive they are. For example, fuel taxes are different in every state. If in Chile we h
