LATAM reports loss of $691.9 million in third quarter of 2021.

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5 years ago

LATAM Airlines, Latin America’s largest airline, reported on Tuesday that during the third quarter of this year it recorded a net loss of 691.9 million dollars, due to maintenance costs and the expenses of the restructuring it is carrying out due to the pandemic.

The company detailed in a statement that in the period it obtained revenues of 1,314 million dollars, which represents 50.7% less than what it achieved in the same period of 2019, before the global health emergency caused by the coronavirus.

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The revenue figure, however, represents an improvement of 47.8% compared to the second quarter of 2021 and 156.1% versus 2020, a year the company ended with a net loss of $4,545.9 million.

Meanwhile, cargo revenues posted a 43.6% increase in the third quarter of this year compared to the same period in 2019, reaching $361.4 million.

Regarding the operation, LATAM reached 49.7% of 2019 levels (measured in seat kilometers) in this last quarter, “driven by a strong recovery in its domestic operations and a 75% capacity increase compared to the second quarter of 2021,” according to the briefing note.

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The group said it expects to close the year operating above 65% consolidated capacity, in seat kilometers, versus 2019 levels.

Meanwhile, total costs reached US$1,793 million at the close of the period, representing a 25.2% drop compared to the third quarter of 2019.

Seat cost per kilometer without considering the fuel variable decreased 18.3% compared to the second quarter of this year, “despite higher maintenance costs and a slower recovery of the international operation”, reported EFE.

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