LATAM pulls inflight duty free flagging ‘stock level issues’

By Luke Barras-hill |

LATAM

Chile’s LATAM Airlines ended its duty free contract on int. flights on 20 October. Source: LATAM Airlines Group.

LATAM Airlines has ceased the inflight duty free programme on its international flights, effective 20 October.

A Spokesperson from the airline confirmed the termination of the contract with inflight concessionaire Duty Free World (DFW).

“The supplier repeatedly did not meet LATAM’s standards regarding stock levels and other contractual obligations,” they told TRBusiness.

A report that surfaced in Peru’s La República earlier this week sited ‘harsh criticism’ directed towards the supplier on the cancellation of the contract.

Miami-based DFW stated it was ‘working to resolve its differences with LATAM’ when approached by TRBusiness, but declined to comment further.

DF SALES -28% IN 2017

According to an annual report filing, duty free sales onboard the New York Stock Exchange-listed airline shrunk from US$11,141m in 2016 to US$8,038m in 2017 (US dollars is LATAM’s functional currency, although its subsidiaries trade in different denominations such as the Chilean and Argentinean peso).

Operating revenue from non-passenger and cargo sources lifted by 6.7% year-on-year, added the filing.

LATAM Airlines Group boasts a network covering more than 140 destinations in 25 countries, including international routes across Latin America, Europe, the US, the Caribbean, Oceania and Africa.

DF sales LATAM

Source: LATAM Airlines Group Annual Report 2017.

It carried 51.1m international pax (+2.8%) in the nine months to September this year, according to its preliminary monthly statistics released this month.

International pax traffic in September accounted for approximately 58% of the month’s total traffic (9.7m)

Established in 1995 by President and CEO Mayra Del Valle, DFW provides airlines with travel retail programmes and inflight product management services, including data capture and processing, and supply chain management, according to its website.

 

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