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LATAM closed the 2021 with continuous improvements in your income, reduction of unit costs and important advances in its production process Chapter 11.
The LATAM group today announced its financial results for the 4Q of the year 2021, those that account for the continuous improvement in air traffic levels as a result of the relaxation of travel restrictions and the vaccination process.
During the last quarter, total operating income amounted to US$1,995.9 million, that is to say, 30,5% below the levels of 2019, 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 result, which amounted to US$73.4 million during the quarter.
At the general level, during the 2021, Total revenues reached US$5,111.3 million, a decrease in 51,0% with respect to 2019.
Group operations LATAM they reached the 63,5% of the levels of 2019 during the quarter (measure in ASK), which corresponds to an increase in the capacity of the 29,6% compared to the third quarter of 2021, fundamentally driven by the reactivation of domestic traffic.
As in previous quarters of 2021, the operations of the freight subsidiaries of LATAM continued to show solid performance, with income that increased 66,0% compared to the same period of 2019 amounting to US$464.8 million. Until now, The slow recovery of international flights has made it impossible to return to pre-pandemic levels.
Total operating expenses were US$1,992.4 million in the fourth quarter of 2021, which represents a decrease in 23,7 % compared to the same period of 2019, following group cost restructuring efforts. The CASK (cost per ask) ex fuel improved a 25,0% compared to the third quarter of 2021, from US$7.4 cents to US$5.6 cents. Costs linked to operations remain below pre-pandemic levels 2019, but they have shown an increase in recent quarters driven by operational recovery and strong increases in fuel prices.
Roberto Alvo, CEO of LATAM, maintained that:
“We hope that the operation continues to recover to reach the magnitudes that we knew in 2019, but we cannot lose sight of the fact that we find ourselves in an uncertain context not only due to the effects of the new variants of COVID-19, but now also due to the tension of a war conflict that has the world on alert and that impacts the price of oil.".
The group is awaiting approval of its Disclosure Statement by the Court in USA. On the other hand, is aiming to get out of Chapter 11 during the second half of 2022, closing a stage of important transformation that has allowed us to build a renewed organization, more agile, with a solid balance sheet, a very competitive cost structure and good level of liquidity, which will allow us to address future business challenges on the right footing..
During the 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 sustainability strategy to 2050 with a focus on climate change, circular economy and shared value.
The sustainability strategy considers well-defined goals: zero waste in landfills for 2027, carbon neutrality 2050 and protection of iconic ecosystems in South America. In this last area, the alliance between LATAM and the Cataruben Foundation stands out for the conservation and restoration of an iconic ecosystem in South America., 200 thousand hectares of flooded savannah located in the Orinoquía of Colombia.
Mediante el programa “Solidarity Plane”, that seeks to generate value in society through the transportation of passengers and cargo at no cost, the group has mobilized more than 232 millions of vaccines against Covid-19, In addition to transporting more than 3.400 health professionals to address urgent needs related to the pandemic.
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