LATAM reported operating revenues of $3.056 billion in the third quarter
LATAM Airlines Group released its financial results for the third quarter of 2023, consolidating the good performance it has shown this year. At the end of the period, the group achieved an adjusted operating margin of 13.4% and net income of US$232 million, accumulating US$499 million in the first nine months of 2023.
LATAM achieved operating revenues of US$3.056 billion, 18.1% higher than in the same quarter of 2022, mainly explained by the 25.6% increase in passenger operations revenues. Adjusted EBITDAR was US$726 million, reaching US$1,858 million between January and September 2023.
On the cash side, it generated US$104 million in cash during the quarter, increasing its liquidity to US$2,729 million.
“We are very proud of the group’s financial performance during the third quarter and throughout the year, which has been progressively improving thanks to systematic work with a long-term vision. At the end of this quarter, the group posted a record revenue result following a consistent recovery in passenger transportation. At the same time, LATAM Airlines Group S.A.’s capital structure continues to be unparalleled in the region in terms of liquidity and leverage, which added to the unmatched connectivity that LATAM Group offers at a regional level, demonstrates that it is on the right track,” said Ramiro Alfonsín, LATAM’s CFO.
→ LATAM to fly between Bogota and Caracas starting in December
During July, August and September, the group’s consolidated operations (measured in ASK, or its capacity in seats per kilometers offered) have been recovering, growing by 15.2% compared to the same quarter of 2022.
Internationally, operations increased 29.2% in terms of capacity, and reached an average occupancy factor of 87.1% during the quarter. It is worth mentioning that, at the consolidated level, the LATAM group had an occupancy factor of 85.3%.
In the case of the domestic segment, LATAM Airlines Brazil operations increased 1.3% over 2022 (107.3% v/s 2019), while operations corresponding to subsidiaries in Colombia, Chile, Peru and Ecuador grew 9.5% over last year (91.4% v/s 2019).
Robust regional and international network
October marked one year since the implementation of the Joint Venture with Delta Air Lines, which has already operated 15,000 flights between North America and the JV countries within South America, and where 3 million customers have already benefited from this alliance.
During the period, LATAM Airlines Group resumed daily flights to Rapa Nui from Santiago de Chile and reopened the Santiago-Melbourne routes, both by LATAM Airlines Group, and LATAM Airlines Brazil resumed the Sao Paulo-Johannesburg route. The group also announced the expansion of its network with direct flights by LATAM Airlines Peru between Lima and London as of December 1.
In terms of fleet, in the third quarter, the group took delivery of four Boeing 787-9 aircraft and seven narrow body aircraft, including the first Airbus 321Neo. An additional 13 A321Neo aircraft were also ordered, forming part of a total order of 111 Airbus A320 family aircraft that will bring further cost efficiencies to LATAM’s fleet. At the end of the third quarter, the group had 245 Airbus narrow body aircraft, 58 Boeing wide body aircraft and 18 Boeing freighters, totaling 321 aircraft.
Advances in sustainability
During the period, LATAM and Airbus together with the Massachusetts Institute of Technology (MIT) announced the start of a joint study on Global Change Science and Policy, for research on the use of sustainable aviation fuels (SAF), with a view to decarbonization in the industry by 2050. At the same time, the group achieved a 93% reduction in single-use plastics throughout the operation. In October, LATAM received its first Airbus A321Neo in Brazil, a highly efficient aircraft that used 49% SAF for its transportation.
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