Latam Airlines Group SA, the airline created by the merger of Chile’s Lan and Brazil’s Tam, dropped to the lowest in three months after costs related to the combination led to a bigger-than-forecast loss.
Latam fell 0.8 percent to 10,678 pesos at the close in Santiago, its lowest closing price since Dec. 10 and its fifth day of losses. The Ipsa benchmark index advanced 0.6 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.”