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LATAM Airlines Group reported its financial results at the end of the 2022, leaving as a result $2.300 million liquidity along with recovery operational.
LATAM Airlines Group S.A. announced its financial results for the fourth quarter of 2022, closing a year marked by the end of its restructuring process under the Chapter 11, a solid financial result and an operational recovery close to the pre-pandemic.
LATAM financial results in 2022
Regarding the pre-pandemic period, the group managed to reduce its gross debt by 37,5% rising from US$10.4 billion before the Chapter 11 to US$6.5 billion at the end of last year, increasing, at the same time, its liquidity in a 78% reaching US$2.3 billion compared to the period prior to the reorganization process that began in May of 2020.
During the fourth quarter of last year, total group revenue reached US$2,744 million, what a represents 37,5% plus, than the same period of 2021. For his part, EBITDAR reached US$466.8 million in the quarter and LATAM registered a net profit attributable to the owners of the parent company of US$2,538 million as a result of the restructuring process.
“The results of the 2022 show a strengthened and more competitive group than before the pandemic. During the year, The LATAM group made significant progress in different areas. The network was expanded through the alliance with Delta and new routes were launched, the cargo business was strengthened and the service for customers was improved. Progress was also made in the renewal of the fleet and the group took a leadership position in sustainability, which allows us to be optimistic about the future. The LATAM group has a competitive cost structure that will allow it to respond to the connectivity challenges of the South American countries”, Robert Alvo said, CEO de LATAM Airlines Group.
Operational recovery and connectivity
during the fourth quarter, the group's consolidated operations LATAM were the 83,2% of the levels of 2019 (measures in ASK). Last year, the group LATAM transported approximately 62 million passengers, which represents an increase of 22 million compared to 2021, ending the year with 144 destinations in 22 countries, in line with the number of destinations flown at the close of 2019.
For him 2023, the LATAM group expects annual growth in its passenger and cargo operations of more than 20% in respect of 2022. On 2023, the LATAM group will fly 38 new routes that it did not operate on 2019, within which two are framed in the JV with Delta.
In terms of connectivity, the 2022 It was a great year for the LATAM group. After the implementation of the joint venture (JV) con Delta Air Lines, passengers will have the possibility of accessing more than 300 destinations between USA / Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru and Uruguay). in july 2023, LATAM Airlines Brazil will operate The Angels – Sao Paulo and LATAM Airlines Colombia will operate Orlando – Bogota. Regarding this last route, the Colombian subsidiary plans to transport 120 thousand passengers a year offering better connection alternatives from within Colombia and Ecuador to the east coast of the United States through the hub of Delta in Orlando and the LATAM connection center in Bogotá.
At the same time, the group continued to show its growth in the region, with subsidiaries in Brazil, Chile and Peru, increasing their market share in their respective domestic segments. In the case of the Brazilian subsidiary, went from a 34% of market share in 2019 still 37% at the end of the year, while the subsidiary in Peru went from a 62% still 65% and the subsidiary in Chile went from a 58% still 60%.
Currently, LATAM Airlines Brazil flies to 54 brazilian destinations, the largest number in its history in the country. Only in 2022, began to fly to 6 new destinations in Brazil: Prudent President, Rattlesnake, Caxias do Sul, Juiz de Fora/Zona da Mata, Montes Claros and Sinop. At the same time, returned to fly directly from São Paulo/Guarulhos to Boston and Rome, and opened the Rio de Janeiro/Galeão routes-Buenos Aires/Ezeiza, Rio de Janeiro/Galeão-Buenos Aires/Aeroparque, Rio de Janeiro/Galeao – Lima, Florianópolis-Santiago, Curitiba-Santiago, Porto Alegre-Lima and Fortaleza-Miami.
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