Latam Airlines Declines in Santiago on Quarterly Loss

Latam Airlines Group SA (LAN), the airline created by the merger of Chile’s Lan and Brazil’s Tam, dropped to the lowest since 2011 as deal-related costs led to a bigger-than-expected loss.

Latam fell 1.8 percent to 10,570 pesos at 12:16 p.m. in Santiago, which would be its lowest closing price since October 2011. The Ipsa (IPSA) benchmark index advanced 0.1 percent.

The carrier reported yesterday a net loss attributable to shareholders of $51.1 million in the fourth quarter, compared with profit of $115 million a year earlier. The average estimate of six analysts surveyed by Bloomberg was for a loss of $32.5 million.

“Merger costs and the level of synergies obtained affected profit,” analysts at the brokerage unit of Chilean lender Banco de Credito & Inversiones said in an e-mailed note today. “The company’s performance and the challenges reaching its cost- saving goals will lead us to review our estimates.”

To contact the reporter on this story: Eduardo Thomson in Santiago at

To contact the editor responsible for this story: David Papadopoulos at

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