SANTIAGO, April 26 (Reuters) - LATAM Airlines , Latin America’s biggest airline has a “moderately positive” outlook on its 2016 earnings, the chairman said on Tuesday, citing more stable currencies in the region that will help boost its bottom line.
Lower fuel costs would also help counteract weak demand in Brazil, the biggest market for the airline, chairman Mauricio Amaro told journalists after LATAM’s annual shareholder meeting in Santiago.
“What gives us a little confidence is that currencies have stabilized and the dollar has even weakened a little against the (Brazilian) real. That leads us to continue to have a moderately positive outlook for the 2016 results,” said Amaro.
A sharp depreciation in the real and other Latin American currencies last year eroded the airline’s profits.
Amaro declined to specify if the company may make a profit this year. Brazil’s weak economic performance has led the airline to a net loss every year since 2012, when it was formed in a merger between Chile’s LAN and Brazil’s TAM. (Reporting by Felipe Iturrieta; Writing by Rosalba O’Brien; Editing by Frances Kerry)