LATAM advances in its operational recovery reaching the 81%

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Advancing in the reorganization process under the Chapter 11, LATAM Airlines positively continues its operational recovery.

The LATAM Group announced its consolidated financial results for the second quarter of the year, which reflect a gradual recovery of the operation, reaching a consolidated capacity (measure in ASK) from 72,6% of the levels of 2019, which in turn represents more than double the capacity of the same quarter of 2021, growing a 135,2%. This recovery of capacity is explained, principally, due to the solidity of the domestic markets in Brazil, Colombia and Ecuador, in addition to the recovery of international operations, and it occurs in a context marked by a sharp increase in the price of fuel.

During the period, the group's total operating income reached US$2,226 million., a 6,1% less than the 2019, but recorded an increase of 150,5% compared to last year. For his part, costs increased by 3,5% Compared to the same quarter of 2019, driven by an increase in 31,5% in the Fuel cost line in the quarter compared to the same period of 2019.

LATAM had losses of US$523.2 million

Roberto Alvo, CEO de LATAM Airlines Group, commented that

“We have closed a second quarter with significant progress in our reorganization process under the Chapter 11 and we hope to get out of it during the last quarter of this year. Although the group has made progress in the operational recovery, We continue to remain cautiously optimistic about the coming months, closely monitoring fuel prices and macroeconomic variables., as the industry is still in a very dynamic environment”.

During the period, the group LATAM achieved approval of its Plan of Reorganization by the United States Bankruptcy Court and secured exit financing.

In Extraordinary Shareholders Meeting (JEA), LATAM obtained the necessary approval from its shareholders for the company's new capital structure and the issuance of the financing instruments presented in the Plan. Received the support of the vast majority of shareholders, corresponding to a 99,8% of the shares present or represented at the Meeting, which correspond to a 77,5% of the total shares with voting rights, allowing LATAM to begin the final phase of the regulatory requirements in Chile for the eventual implementation of the Plan.

LATAM has already started the process of registering Plan instruments in Chile, which began with the presentation of the request for registration of the instruments before the Commission for the Financial Market (CMF) the 8 last july.

Sustainability

In order to achieve carbon neutrality by 2050, LATAM announced in April that it will seek to reach a 5% of use of sustainable fuel al 2030 privileging production in South America. At the same time, the group announced in July its intention to explore opportunities for CO2 removal through direct carbon capture and storage from the air ("DACCS" for its acronym in English). This announcement was made collaboratively and in association with other industry players after signing a letter of intent with Airbus..

In Circular Economy, During the quarter, the "Recycle your Trip" program was implemented in the subsidiary of Peru and later in the Colombia, which consists of segregating the waste generated on board and which was already operating on the domestic flights of the subsidiaries in Chile and Ecuador.

Finally, LATAM added new alliances to its program Solidarity Plane through the signing of cooperation agreements with ANIQUEM in Peru and Firefighters in Chile. Currently, The group has more than 20 alliances in Latin America.

Operation for August

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