Latam Airlines Group's passenger revenue declined 16.4
percent year over year to $2 billion in the first quarter of 2016. Capacity
rose 3.3 percent year over year and traffic increased 4 percent, but yield was
down 19.7 percent. Due to weak demand in Brazil, Latam cut capacity for Brazil
operations 8.4 percent year over year during the quarter. In the second half of
this year, the airline group plans to cut capacity on Latam Airlines Brazil's
U.S.-Brazil flights 35 percent year over year. With operating expenses in the
quarter down 17.8 percent, Latam reported a net income of $102.2 million for
the quarter, compared with a $39.9 million loss in the first quarter of 2015.