LATAM Airlines loses 573 million in third quarter.
LATAM Airlines, the largest air transport group in Latin America, reported Friday losses of $573.1 million in the third quarter, due to the strong impact of the coronavirus pandemic.
See also: LATAM Airlines awarded as the leading airline in South America.
LATAM explained that the total income of the group fell by 80.8% to 512.9 million dollars between July and September. In contrast, cargo revenues improved by almost 13%, Reuters reported.
“While we have made a lot of effort on costs, these are not good results. It’s no surprise given this demand environment,” Finance Vice President Ramiro Alfonsin told reporters.
See also: Aeromexico and Latam Airlines sign code share agreement.
However, the executive highlighted that “we are beginning to see an impact and a traction in the demand especially in the domestic markets, which are all already operating, and a little in the international market”.
Already in September, the occupancy factor in Brazil exceeded 80% for the first time since the beginning of the pandemic, he said.
In May, LATAM filed for bankruptcy protection in the United States due to the impact of the pandemic restrictions and Alfonsín maintained the forecast of completing the process in 12 to 18 months.
He also said that in early October the first $1.15 billion of the $2.4 billion committed in the DIP (Debtor in Possession) financing plan was drawn and they are currently advancing in the process of claims from their creditors and renegotiation of the fleet.
The executive said that the resources are in addition to a box of $ 866 million from the firm.
The airline, which operated in September at 20% of its capacity compared to the same period last year, recorded an operating loss of 564.7 million dollars, while fuel costs fell by 84.7%.
By the end of the year, the group maintains the goal of reaching 40% of its capacity, as planned.
On the other hand, Alfonsín also reported that the units in Colombia and Brazil signed a code-sharing agreement with Aeroméxico.
The airline, born from the merger of the Chilean LAN with the Brazilian TAM in 2012, has operational units in Chile, Brazil, Colombia and Peru.
By Fabian Andres Cambero
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