SANTIAGO, Nov 12 Newly merged regional carrier
LATAM Airlines posted a $63.7 million net loss for the third
quarter on Monday, as a corporate tax rise in Chile and costs
associated with the merger stung the carrier's bottom line.
Chile's LAN Airlines completed a takeover of Brazilian rival
TAM in June, creating the world's second-largest airline by
market value in a deal that executives expect to yield up to
$700 million in annual cost savings within four years.
LATAM Airlines said that, in the third
quarter, it faced non-recurring costs of $70.4 million due to
the Chilean tax reform that permanently increased the tax rate
on businesses to 20 percent, and expenditures of $19.5 million
related to the merger.
In September, Chile's Congress approved major changes in tax
laws to provide funds for an overhaul of the country's
The airline's revenue, however, more than doubled to $3.265
billion in the July to September period from $1.455 billion in
the same year ago period.
LATAM Airlines said it plans to spend $9.14 billion to
increase its total fleet to 379 aircraft in 2015 from 323 planes