LATAM projects passenger operations growth between 12% and 14% by 2024
LATAM Airlines Group released on Tuesday its guidance for 2024, which contains operational and financial projections. The group estimates a growth for next year in its passenger operations between 12% and 14% (measured in available seat kilometers – ASK), estimating to exceed 2019 levels during the first quarter of 2024. In the case of the subsidiary’s domestic passenger market in Brazil, growth is projected between 7% and 9%.
LATAM Cargo subsidiaries expect growth of between 10% to 12% in their operations (measured in available tonne-kilometers – ATK). To date, the cargo subsidiaries have a total of 19 freighter aircraft completing their reported fleet plans by 2021, reinforcing their position as the largest cargo airline group in Latin America.
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In financial terms, the group projects record adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs) for 2024 of between US$2.6 billion and US$2.9 billion.
“LATAM Group’s projections for the coming year are a reflection of the group’s operational and financial performance, as well as its competitiveness,” said Ramiro Alfonsín, CFO of LATAM Airlines Group.
At the same time, the group continues to reduce its net leverage level (net financial debt/adjusted EBITDAR), expecting to close 2024 between 1.8x to 2.0x (times), which represents a reduction in its indebtedness of approximately 50% versus the leverage levels after the successful exit of the Chapter 11 restructuring process.
In terms of liquidity, LATAM expects to have between US$2.8 billion and US$3 billion by the end of next year, as well as to maintain its solid capital structure.
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