WASHINGTON—LATAM Airlines has revamped its full-year capacity-growth plan, dropping it one point to 3-5% as the Santiago, Chile-based airline group re-allocates seats to promising markets and cuts back on weaker ones, notably international flying. “We are reacting to the weak international demand by reducing frequencies and suspending routes in international operations where demand has softened and in markets with over-capacity,” CFO Ramiro Alfonsin told analysts on a ...

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