LATAM reported net income of US$301 million in third quarter of 2024

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LATAM Airlines Group released its financial results for the third quarter of 2024, which continue to show a good performance.

The group reported net income of US$301 million for the period, accumulating US$705 million in profits between January and September 2024.

In terms of operating revenues, LATAM reached US$3.3 billion, an increase of 7.6% over the third quarter of 2023, with an adjusted operating margin of 14%. The group recorded a solid adjusted EBITDAR of US$828 million, with an adjusted margin of 25.2%.

During the quarter, capacity measured in available seat kilometers (ASK) grew 15.1% with respect to 2023, with a consolidated occupancy factor of 84.9%. International operations grew 22.4%, with an occupancy factor of 86.1%.

LATAM resumes nonstop flights between Santiago and Sydney

The CFO of LATAM Airlines Group, Ramiro Alfonsín said that “these good results are the result of the work of recent years that has allowed sustained and profitable growth. In this sense, we have managed to reduce debt, there are practically no financial maturities in the next four years, we have liquidity of US$3.6 billion and the LATAM group has achieved, with much effort, a cost per passenger ASK, excluding fuel, of US$4.0 cents.”

LATAM recently updated its projections for 2024. In terms of capacity, the group said it expects 15% to 16% growth for the year compared to 2023 and projected an adjusted unit cost of passenger operations excluding fuel between US$4.2 to US$4.3 cents, lower than originally projected.

The group said it expects annual adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs) to be between US$3.0 billion and US$3.15 billion. At the same time, it expects to continue decreasing its adjusted net leverage ratio to 1.6x – 1.7x by the end of the year.

Sustained growth

In the period analyzed, the LATAM group transported 21.1 million passengers, an increase of 7.1%. In the last 12 months, the figure was 80.6 million people, representing growth of 13.6% compared to the same period last year, driven by solid demand. The group is the tenth largest worldwide, and the leader in South America, serving a total of 164 destinations (including passengers and cargo) in 31 countries.

In terms of fleet, the group has secured an order book of more than 120 aircraft until 2030, supporting its future growth. It maintains commitments with Airbus, Boeing and lessors, amounting to 106 narrow body and 19 wide body aircraft including the recent purchase of 10 Boeing aircraft, securing one of the few available positions until 2030.

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