LATAM Airlines posts $58.9 million net loss

SANTIAGO Tue Aug 12, 2014 6:40pm EDT

SANTIAGO Aug 12 (Reuters) - LATAM Airlines Group SA , Latin America's largest carrier, on Tuesday posted a $58.9 million net loss for the second quarter due to a weaker local currencies and softer demand due to the World Cup in Brazil.

That compares to a net loss of $329.8 million in the second quarter of 2013.

The company, formed in 2012 from the tie-up of Chilean flagship LAN and Brazilian airline TAM, has been cutting capacity on Brazilian routes and deleveraging to try to shore up its margins and debt rating.

LATAM Airlines cut its margin forecast for 2014 last month, blaming the soccer World Cup in Brazil in June and July for hitting business and tourist travel, and saying that weakening Latin American economic growth and currency headwinds were also a factor. (Reporting by Anthony Esposito; Editing by David Gregorio)

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