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The company LATAM Airlines Group recorded a net profit of US$301 million during the third quarter of the year and a 15,6% passenger growth.
LATAM Airlines Group S.A. today announced its financial results for the third quarter of the year. 2024, which continue to show good performance and are delivered to the market after the return of LATAM Airlines Group S.A.. to the New York Stock Exchange (NYSE) with the symbolic “Ring the Bell” and its subsequent Investor Day. LATAM reported a net profit of US$301 million in the period, accumulating US$705 million in net profits between January and September 2024.
LATAM achieves 301 millions of profit
In terms of operating income, LATAM reached US$3.3 billion, which represents an increase of 7,6% Regarding the third quarter of 2023, obtaining an adjusted operating margin of 14,0%. LATAM posted solid adjusted EBITDAR of US$828 million, with a tight margin of 25,2%. What's more, the group continued to strengthen its capital structure, generating US$157 million in cash during the period.
During the quarter, capacity measured in available seats per kilometer (ASK, in English) grew up 15,1% in respect of 2023 and a consolidated load factor of 84,9%. The growth of 22,4%, of international operations, and with an occupancy factor of 86,1%.
What's more, in october 2024 the refinancing of most of the Chapter's exit debt was carried out 11 from the LATAM group, managing to reduce the original financial cost almost by half, and ensuring that we will not have financial debt maturities until the year 2028. From an accounting perspective, This refinancing will generate a one-time impact on the income statement of approximately US$134 million, of which US$45 million will be reflected in the cash movements of the fourth quarter. Likewise, These US$45 million are part of the US$200 million total cash used in this process.
El CFO of LATAM Airlines Group, Ramiro Alfonsín said that “These good results are the result of the work of recent years that has allowed sustained and profitable growth. In this way, debt has been reduced, There are practically no financial maturities in the next four years, liquidity of US$3.6 billion is available and the LATAM group has reached, with a lot of effort, a cost per passenger ASK, excluding fuel, of US$4.0 cents.”
Recently LATAM updated its projections for this 2024. In terms of capacity, LATAM said it expects growth of between 15% and 16% compared to the previous year and projected an adjusted unit cost of passenger operations excluding fuel between US$4.2 to US$4.3 cents, lower than originally projected. The group announced that it expects an annual EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs by their acronyms in English) adjusted between US$3,000 million and US$3,150 million. At the same time, expects to continue decreasing its adjusted net leverage ratio to 1.6x – 1,7x times at the end of the year.
Sustained growth
In the period analyzed, the LATAM group transported 21,1 million passengers, an increase of 7,1%. in the last 12 months, the figure was 80,6 millions of people, which represents a growth of 13,6% compared to the same period of the previous year, driven by strong demand. The LATAM group is the tenth largest in the world, and the leader in South America reaching a total of 164 destinations in total (includes passengers and cargo) on 31 countries.
In terms of fleet, The group has secured an order for more than 120 planes up to 2030, which supports your future growth. Maintains commitments with Airbus and Boeing and lessors, which amount to 106 aviones narrow body (narrow body, a hallway) and 19 aviones wide body (wide body, two hallways) including the recent purchase of 10 boeing aircraft, securing one of the few positions available until 2030. Currently, LATAM has 341 aircraft, 56 Boeing airliners (models 767, 777 and 787) and 263 Airbus airplanes (A319 models, A320, A320neo, A321 y A321neo).
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