LATIN AMERICA. LATAM Airlines has announced the termination of its inflight duty free offer effective from 20 October, according to Peruvian newspaper La República.
The report noted that the airline has reported a sharp drop in duty free revenues in the last decade. Last year’s figure was US$6.6 million, compared to a reported US$22.4 million in 2007.
The airline has worked with Miami-based inflight retail partner Duty Free World (DFW) since 2013.
According to the report, LATAM cancelled the contract last weekend and made a public announcement featuring what La República described as “harsh criticism” of its partner.
LATAM cited stock shortages and lack of product availability, with the airline quoted as follows: “As of Saturday 20 October, LATAM stopped the duty free service onboard its international flights.” It also said that the service did not meet the “quality standards that the company seeks to offer its passengers.”
DFW declined to comment to the newspaper. The Moodie Davitt Report has also reached out for comment and will publish any response.
La República noted that the move comes at an uncertain time for LATAM Airlines, which is dealing with issues including staff strikes, increased operating and fuel costs, and the threat to its business from low-cost carriers.
However, said the newspaper, LATAM’s 2018 financial reports to date show a notable improvement on 2017.
LATAM is the latest major carrier in the Americas to drop its inflight sales programme. Others to do so in recent years include United, Delta and American Airlines.
The original article on larepublica.co can be found here.
