November 13, 2012 / 12:40 PM / in 5 years

RPT-UPDATE 1-LATAM Airlines posts quarterly loss on Chile tax change

SANTIAGO, Nov 12 (Reuters) - 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
protest-hit schools. 
    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
in 2012.
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