LATAM closes first quarter with net income of US$121.8 million
LATAM Airlines continues to show a good performance in its financial results, maintaining the positive trend of recent months after its successful exit from Chapter 11 last year. At the end of the first quarter of 2023, the group had a net income of US$121.8 million. At the same time, liquidity was US$2.5 billion higher than in the previous quarter.
During the period, total operating income amounted to US$2.805 billion, 43.2% higher than in 2022. Adjusted operating expenses were US$2.510 billion, which generated an adjusted operating margin of 10.5% for the quarter.
LATAM Airlines Group CFO Ramiro Alfonsín said that “after a 2022 in which the group completed its financial restructuring, LATAM continues to grow. The first quarter result is a solid reflection of the more efficient cost structure following the initiatives implemented during the reorganization process, accompanied by a healthy demand context. As a result, LATAM generated US$199 million of cash in the first quarter and had a positive net result of US$122 million.
→ LATAM to offer 13 new destinations in Brazil thanks to agreement with Voepass
Consolidated operations increased 26.3% in the first quarter of the year compared to the same period of 2022. Domestic flights of the subsidiary in Brazil increased 21.4% compared to 2022. Domestic flights of the subsidiaries in Colombia, Chile, Peru and Ecuador decreased 2.3% while international operations increased 26.3% over 2022 levels.
It is important to note that during 2023 LATAM Airlines Group will restart the Santiago – Melbourne route and the subsidiary in Brazil will reestablish the Sao Paulo – Johannesburg route.
In addition, the group expects the arrival of 15 Airbus A320neo family Airbus and 6 Boeing 787s during the second half of this year, all of which have already been financed.
In the first quarter of the year, LATAM achieved an 88% reduction of single-use plastics and is committed to its goal of 100% reduction by the end of this year. In addition, and as part of its efforts to promote the use of Sustainable Aviation Fuels (SAF), in March it invested in the use of SAF for LATAM Cargo’s international operations.
An important milestone of the period was the reincorporation of LATAM’s shares into the IPSA, the main index of the Santiago Stock Exchange. It should be recalled that the company’s shares had been removed from this index in May 2020, following the group’s Chapter 11 filing.
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Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.