{"id":122982,"date":"2022-03-09T21:30:00","date_gmt":"2022-03-09T21:30:00","guid":{"rendered":"https:\/?p=122982"},"modified":"2022-03-10T00:24:44","modified_gmt":"2022-03-10T00:24:44","slug":"latam-closes-2021-with-revenue-improvements","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2022\/03\/latam-closes-2021-with-revenue-improvements.html","title":{"rendered":"LATAM closes 2021 with revenue improvements and progress in Chapter 11 process"},"content":{"rendered":"\n

LATAM Group<\/strong> released its financial results for the fourth quarter of 2021 on Wednesday, which show continued improvement in air traffic levels as a result of the easing of travel restrictions.<\/p>\n\n\n\n

During the latest quarter, total operating revenues totaled US$1,995.9 million, or 30.5% below 2019 levels, but 51.9% higher compared to the third quarter of 2021. And for the first time since the start of the pandemic, the group recorded a positive operating profit, which amounted to US$73.4 million during the quarter.<\/p>\n\n\n\n

\u2192 LATAM will move its International Operations to new Terminal 2 at Santiago Airport.<\/a><\/strong><\/em><\/p>\n\n\n\n

Overall, during 2021, total revenues reached US$5,111.3 million, a decrease of 51% compared to 2019.<\/p>\n\n\n\n

LATAM group operations reached 63.5% of 2019 levels during the quarter (measured in ASK), corresponding to a 29.6% increase in capacity compared to Q3 2021, driven primarily by the reactivation of domestic traffic.<\/p>\n\n\n\n

As in previous quarters of 2021, the operations of LATAM’s freighter subsidiaries continued to show a solid performance, with revenues increasing 66% compared to the same period of 2019 amounting to US$464.8 million. So far, the slow recovery of international flights has made it impossible to return to pre-pandemic levels.<\/p>\n\n\n\n

Total operating expenses were US$1,992.4 million in Q4 2021, a decrease of 23.7% compared to the same period in 2019, following the group’s cost restructuring efforts. CASK (cost per ASK) ex fuel improved 25% compared to Q3 2021, from US$7.4 cents to US$5.6 cents. Operations-linked costs remain below pre-pandemic 2019 levels, but have shown an increase in recent quarters driven by operational recovery and strong fuel price increases.<\/p>\n\n\n\n

\u2192 LATAM Airlines to resume flights from Brazil to Rome and Boston.<\/a><\/em><\/strong><\/p>\n\n\n\n

Roberto Alvo, CEO of LATAM, said that “we expect the operation to continue recovering to reach the magnitudes we knew in 2019, but we cannot lose sight of the fact that we are in an uncertain context, not only due to the effects of the new COVID-19 variants, but now also due to the tension of a war conflict that has the world on alert and impacts the price of oil”.<\/p>\n\n\n\n

The group is awaiting approval of its Disclosure Statement by the U.S. Court. On the other hand, it is aiming to exit Chapter 11 during the second half of 2022, closing a stage of important transformation that has allowed to build a renewed, more agile organization, with a solid balance sheet, a very competitive cost structure and a good level of liquidity, which will allow to face the future challenges of the business on a good footing.<\/p>\n\n\n\n

During 2021, the LATAM group not only simplified processes, redesigned fleet strategies, renegotiated contracts and restructured costs, but also took a fundamental step for the future projection of operations. In the midst of the pandemic, LATAM presented its 2050 sustainability strategy with a focus on climate change, circular economy and shared value.<\/p>\n\n\n\n

Through the “Avion Solidario” program, which seeks to generate value for society by transporting passengers and cargo at no cost, the group has mobilized more than 232 million vaccines against Covid-19, in addition to transporting more than 3,400 health professionals to meet urgent needs related to the pandemic.<\/p>\n\n\n\n

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