LATAM Airlines reported net income of US$146 million in the second quarter of 2024
LATAM Airlines released its financial results for the second quarter of 2024 on Wednesday, maintaining the positive trend in its operating and financial performance.
The company had a net income of US$146 million during the second quarter, which was driven by growth and healthy margins, accumulating US$405 million in net income for the first six months of the year.
Total operating revenues reached US$3.03 billion in the period, mainly explained by the increase in passenger revenues following the continued growth of the international segment, and the good performance of the domestic subsidiaries, even in the low season. In turn, LATAM reported a solid adjusted EBITDAR of US$619 million for the quarter, 10.7% higher than the same period of 2023, due to the increase in operated capacity and the containment of unit costs excluding the fuel variable.
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During the second quarter of 2024, the LATAM group transported 19.1 million passengers, representing an increase of 11.7% compared to the same period last year. Consolidated capacity, measured in available seat kilometers (ASK), increased 16.2% in the second quarter compared to the same quarter of 2023. This growth was achieved despite the impact that LATAM Airlines Brazil faced with the floods in the state of Rio Grande do Sul and the suspension of operations at Salgado Filho International Airport in Porto Alegre (POA) starting in May.
During the quarter, the consolidated occupancy factor was 82.2%, representing an improvement of 1.8 percentage points over the second quarter of 2023. Internationally, the occupancy factor was 84.3%. LATAM Airlines Brazil’s domestic operations experienced the largest increase, with a 2.5 percentage point improvement over the second quarter of 2023, reaching 79.8%.
“LATAM has delivered solid quarterly results, driven by increased capacity and robust financial performance, despite a slow season in South America and a macroeconomic environment that has put pressure on exchange rates. The diversified revenue structure, as well as the group’s ability to reposition capacity between markets will allow us to be in line with projections, supported by historically stronger quarters ahead and a stable demand environment,” said Ramiro Alfonsín, CFO of LATAM Airlines Group.
LATAM ended the quarter with a liquidity position of US$3.0 billion, having generated US$177 million of cash in the period, excluding the dividend payment of US$175 million in May 2024.
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