CHILE's flag carrier CSAV restored its profitability by posting an operating profit of US$37.3 million in the third quarter after suffering from losses in previous eight quarters, reversing a huge operating loss of $354.9 million a year earlier.
But CSAV is still sailing in the red after counting the results of first nine months, though losses have been reduced 74.2 per cent year on year. As the carrier took a bold move to rationalise its services and capacity last year, revenue has dropped 30.5 per cent.
"We are satisfied with the work done. We have been able to carry out a deep change in our business model and today our efforts are being reflected in our results following a long period of losses," said CSAV chief executive Oscar Hasbun.
He said this quarterly result reflected the successful effect on the carrier's restructuring with "a sustainable long-term business model".
After suffering from huge losses, CSAV has enlarged the joint operations to the present level of 95 per cent of its network capacity from 30 per cent in the past. It has also increased in its own fleet, from eight per cent at the end of 2010 to 37 per cent in the second half of the year.
"The market and freight rates are still unstable, as well as the oil price, so the company is continuing to work to improve its operating efficiency through several initiatives as part of the work being done with the consultants McKinsey," he said.
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