Summary
- LATAM Airlines Group posted record-breaking operating revenue of $3.1 billion in Q3 2023, marking an 18.1% increase from the previous yr, driven by the recovery of the corporate’s passenger operations.
- The corporate’s strong financial performance will be attributed to its efficient cost structure, successful renegotiation of fleet contracts during Chapter 11 bankruptcy, healthy demand, and the resurgence of domestic and international markets across South America.
- Chief Financial Officer Ramiro Alfonsín expressed pride in LATAM’s financial performance, highlighting its incomparable liquidity and leverage within the region. The corporate maintains an optimistic outlook for future growth, with plans to extend its connectivity and expand its fleet in the approaching years.
LATAM Airlines Group had a complete operating revenue of $3.1 billion throughout the third quarter of 2023. This was the primary time the corporate reached this mark in its history, posting an 18.1% increase in revenues in comparison with the identical period last yr, mainly explained by the recovery of the group’s passenger operations.
Strong recovery
In the course of the third quarter, LATAM posted total revenues of $3.1 billion, with a solid operating margin of 13.4%. As well as, the corporate recorded a year-to-date adjusted EBITDAR of $1.85 billion on account of an efficient cost structure, the renegotiation of fleet contracts during LATAM’s Chapter 11 reorganization process, healthy demand, and the recovery of domestic and international markets across South America.
Ramiro Alfonsín, Chief Financial Officer (CFO) at LATAM Airlines, said the corporate is pleased with the financial performance that the group has shown throughout the third quarter. he added.
Photo: Vytautas Kielaitis | Shutterstock.
LATAM Airlines undertook a Chapter 11 bankruptcy process between 2020 and 2022. It filed for a bankruptcy process within the US to guard itself against the impact of the COVID-19 crisis on the aviation industry. Other Latin American airlines, avianca and Aeromexico, also went through Chapter 11.
Optimistic view of the longer term
The corporate is optimistic about its financial and operational performance. In the course of the last yr, LATAM has implemented a Joint Enterprise agreement with Delta Air Lines. In this era, each firms have operated 15,000 flights on greater than 20 routes between North and South America inside the scope of the agreement, and over three million customers have benefited from this three way partnership.
Moreover, LATAM has continually expanded its network. In the course of the quarter, the firm resumed two long-haul routes paused throughout the COVID-19 pandemic, Sao Paulo-Johannesburg and Santiago-Melbourne. Except for that, day by day flights to Easter Island in Chile were resumed from Santiago after three years of reduced frequencies on account of the pandemic.
Photo: dsaprin | Shutterstock.
The corporate is much from over and eyes latest routes. This week, LATAM began a brand new service under the JVA scope, connecting Lima International (LIM) and Atlanta Hartsfield Jackson (ATL). On December 1, it would launch direct flights between Lima and London Heathrow (LHR). In total, LATAM is launching 11 latest international routes in 2023.
LATAM Airlines’ fleet
At the tip of the third quarter in 2023, LATAM group’s fleet was composed of 245 Airbus narrowbody aircraft, 58 Boeing widebody aircraft, and 18 Boeing cargo freighters, totaling 321 aircraft.
In the course of the period, the group received 4 Boeing 787-9, one Airbus A321neo, three Airbus A320neo, and three A320ceo aircraft.
LATAM has fleet commitment agreements with Airbus for brand spanking new aircraft and has signed contracts with lessors to receive each narrowbody Airbus and widebody Boeing aircraft in the approaching years.
The corporate expects to shut the yr with a fleet of 334 aircraft, adding yet one more in total in 2024 (although in point of fact, it expects so as to add 13 latest A320neo planes next yr, but in addition retire nine A320ceos and two Boeing aircraft (not 787s). In 2025, LATAM expects to shut the yr with 341 aircraft on its fleet, including 56 A320neos and 41 Boeing 787s.
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