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LATAM Airlines announced its financial results and profits for the second quarter of the year, maintaining the positive trend of the last months.
During an online press conference, the airline shared the past 2 August the operational financial results of the LATAM group, where the positive numbers and profits that it has left in its different passenger and cargo subsidiaries were confirmed..
LATAM financial results
During this conference, LATAM reported that it had a net profit of US$145 million, mainly explained by higher revenues from the passenger segment and a lower price of the combustible during the second trimester. At the end of the first semester of 2023, LATAM Airlines Group recorded a net profit of US$267 million.
During the second quarter, Operating income reached US$2,676 million, a 20.2% more than in the same quarter last year, while adjusted operating expenses were US$2,405 million, resulting in a tight operating margin of 10,1% for the quarter.
The group continued to strengthen its balance sheet, quarter after quarter, generating US$110 million in cash during the period and reporting total liquidity of US$2.6 billion.
Flights and destinations increase
Equally, in the second quarter of the year, consolidated operations (measurements in ASKs) were up 28,4% with respect to the same period of 2022. International operations increased by 48,4% in relation to the previous year, arriving at 93% of the capacity operated in 2019, Therefore, the airline hopes to return to full capacity at pre-pandemic levels by the end of the year. 2024.
The domestic operations of the subsidiary in Brazil they grew 18% compared to 2022 (measurements in ASKs), while the domestic operations of the subsidiaries of Colombia, Chile, Peru and Ecuador were up 6,5% compared to last year. During the second quarter, the group mobilized 17,1 million passengers, a 22,6% more than equal quarter of 2022.
LATAM Airlines Colombia incorporated 5 aircraft to its fleet increasing its capacity by approximately 20%. This allowed a increase in participation going from a 24% in the first quarter to a 33% to the second quarter.
The quarter was particularly active in connectivity. LATAM Airlines Peru announced new routes, like Lima-Aruba and Lima-Caracas. And within the framework of the JV with Delta, Three new routes and an increase in frequency on an existing route were announced, providing better connectivity between North and South America. Two of these will begin in October: LATAM Airlines Colombia Medellín-Miami will operate, LATAM Airlines Perú will operate Lima-Atlanta and Delta Air Lines will add a second daily flight between Atlanta and Bogotá. The third new route announced is Cartagena-Atlanta, operated by Delta, which will begin operating in December.
For his part, LATAM Airlines Brazil announced a new interline agreement with the South African airline Airlink that will be available from 2 of September, date on which the Brazilian subsidiary will restart its flights to Johannesburg from São Paulo. With this new agreement, the passengers of LATAM will access more than 40 destinations throughout Africa.
In the operations of group load, during the second trimester, the group announced two new cargo routes, Miami-Guayaquil and Miami-San José Dos Campos, strengthening the Miami hub and expanding the group's cargo network. At the same time, added its freighter No. 18 to the freight subsidiaries, which is focused on transporting flowers from Colombia and Ecuador to the world, which completes a total of 65 weekly frequencies of cargo planes from these countries.
Sustainability
During the period the group launched the program “1+1 Compensate to conserve” which offers customers the possibility of offsetting the carbon footprint of their trips by helping to protect and conserve iconic ecosystems and their biodiversity in the region. At the same time, The group managed to eliminate the 88% of single-use plastics on board their aircraft and a reduction in 82% in the total operation of the group LATAM, in line with its goal of completely reducing them by the end of this year.
What's more, Skytrax World Airline recognized the LATAM group as the Best Airline in South America and for the second consecutive year it was highlighted as “Best Seat Comfort in South America” and “Best Catering in South America” de los APEX Passengers Choice Awards.
Occupation on the rise
The companies of the LATAM group continue to provide more and better connectivity to their respective passengers and in the first seven months of the year they transported 41 million passengers, which represents a growth of 20,1% compared to the same period last year. Only in July, the group mobilized 6,8 million passengers, a 19,2% more than 2022 and a 2% more than 2019.
During the month, the load factor of LATAM Group aircraft increased 4,4 percentage points compared to the same month last year, arriving at 86,8%, the highest level reached by the group since the year 2019. He highlighted the level of occupancy of international flights operated by the group's subsidiaries, which reached 88,8%, while the load factor on the domestic flights of the Brazilian subsidiary was 84,9% and in subsidiaries in Spanish-speaking countries (Peru, Ecuador, Chile and Colombia) it was of 84,8%.
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