MEXICO CITY (Reuters) – LATAM Airlines on Monday hiked its estimated core earnings for the year, citing strong first-quarter results and stable demand.
The Chilean carrier bumped up its annual outlook for earnings before interest, taxes, depreciation, amortization and rental costs (EBITDAR) to between $3.4 billion and $3.75 billion, from an earlier estimate of $3.25 billion to $3.6 billion.
The company also raised its forecast for available seat kilometers (ASK), a measure of passenger-carrying capacity, to a year-on-year increase of 7.5% to 9.5%, up from a previous estimate of 7% to 9%.
The improved guidance comes despite a lower top-line forecast. LATAM now sees its revenues down to between $13.8 billion and $14.2 billion, from $14 billion to $14.5 billion.
Earlier on Monday, LATAM reported first-quarter earnings with net profits up 38% to $355 million, from revenues up 2.5% to $3.35 billion.
Adjusted EBITDAR in the quarter leaped 21% to $962 million.
(Reporting by Kylie Madry; Editing by Natalia Siniawski)
Brought to you by www.srnnews.com
