LATAM closes the third quarter with continued revenue improvements and expects to end the year operating over 65% of the 2019 capacity

Source: LATAM

Alongside the publication of its results for the third quarter of the year, the LATAM group reported that it noted a continued improvement in its revenues during the period, reaching US$1,314 million, which represents an increase of 47.8% compared to the second quarter of 2021 and 156.1% compared to the third quarter of 2020. Despite this improved performance, total revenues for the third quarter are 50.7% below 2019 as a result of the ongoing effects of the pandemic.

Cargo revenues recorded an increase of 43.6% compared to 2019, reaching US$361.4 million.

Roberto Alvo, CEO of LATAM Airlines Group, said that “our operation continues to recover, which translates to a substantial revenue improvement during the third quarter. We are already seeing the fruits of our efficiency initiatives, which will allow us to position ourselves as a highly competitive group once our Chapter 11 process is finalized.”

Regarding the operations, the LATAM group showed significant advances in the third quarter, reaching 49.7% of 2019 levels of capacity (measured in ASK), driven by a strong recovery in its domestic operations, and a capacity increase of 75% compared to the second quarter of 2021. The group expects to end the year operating more than 65% of consolidated capacity (measured in ASK) versus 2019 levels.

Total costs amounted to US$1,793 million in the period, representing a decrease of 25.2% compared to the third quarter of 2019. The group’s unit cost (cost per ASK, excluding fuel) decreased 18.3% versus the second quarter of this year, despite higher maintenance costs and a slower recovery of international operation. This result is a reflection of the efficiencies achieved by the group during the last months, which will translate into savings of more than US$900 million annually.

Operating loss in the third quarter of the year totaled US$479.2 million, while the net loss was US$691.9 million, impacted by the effects of maintenance costs, restructuring expenses and other non-recurring expenses.

Sustainability 

During the third quarter, LATAM continued to make progress in the creation of regional alliances within the context of the Solidarity Airplane program, making its connectivity, infrastructure, experience, capacity and speed available to foundations and organizations free of charge. Partnerships include Peru’s Food Bank, Operation Smile, ANIQUEM and ALINEN in Peru; SOLCA – HOPE, INDOT, Red Cross and Operation Smile in Ecuador; and Operation Smile, América Solidaria and the National Institute of Health, Panthera Colombia and the Schooner Bight Ethnic Association in Colombia, among others. It should be noted that Solidarity Airplane also has alliances in Brazil and Chile.

Since the beginning of the pandemic, the group has transported more than 160 million COVID-19 vaccines for free within Brazil, Chile, Ecuador and Peru as part of the same program.

Also, related to the climate change pillar of LATAM’s sustainability strategy, the group recently announced the CO2BIO project, an alliance that represents the first conservation project in the Orinoquia region of Colombia by the Cataruben Foundation, leveraged by the United States Agency for International Development (USAID) and with the participation of Panthera Colombia. CO2BIO includes the conservation of forest, wetland and grassland and the development of sustainable productive activities, and is the group’s first iconic ecosystem conservation project to contribute to the goal of carbon neutrality by 2050.