A LATAM today released its financial results corresponding to the fourth quarter and the full year 2023, presenting a solid financial and operational performance during the period, with a net profit of US$582 million
At the end of 2023, the LATAM group recorded revenues of approximately US$11,8 billion, 23,9% more than in 2022, reaching an adjusted operating margin of 11,3%. In the fourth quarter of 2023, the group had revenues of US$3,3 billion, 18,5% more than the same period of the previous year, which is mainly explained by the constant growth in enger revenues, which grew by 24,3%. % compared to the fourth quarter of 2022.
Regarding the capital structure, LATAM closed 2023 with a liquidity of US$2,8 billion, as a result of cash generation of US$498 million during the last twelve months, which allowed it to reach a leverage of 2,1 times, the lowest in its history.
Last December, the LATAM group presented its guidance for 2024, in which it projects a growth of between 12% and 14% (measured in available seat kilometers – ASK) of its enger operations, estimating to exceed pre-pandemic levels during the first quarter of this year. Furthermore, the company expects an adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs in English acronyms) between US$2,6 billion and US$2,9 billion, and an adjusted leverage between 1,8 and 2,0 times.
Operational recovery
In 2023, the LATAM group transported around 74 million engers, reaching levels similar to those in 2019, before the pandemic. This result is explained by the increase in engers transported in the domestic markets of LATAM group s in Brazil, Chile, Colombia, Ecuador and Peru, and a strong increase of 50,1% in international engers transported compared to 2022.
In the fourth quarter, the LATAM group's consolidated operations, measured in available seat kilometers (ASK), grew 14,7% compared to the same quarter in 2022 (representing a 95,5% recovery from 2019 levels). In 2023, the group expanded its capacity by 20,6% compared to 2022, in line with the guidance updated 2023.
It is worth ing that, during 2023, the group received 30 planes, 5 of which were two-aisle planes (wide body) and 25 of a corridor (narrow body), thus allowing you to increase your offer in all segments. Additionally, the group launched 21 routes in total, 17 international and 4 domestic, including 4 routes operated by the group in the context of the t Venture with Delta Air Lines.
In 2023, the LATAM group continued to strengthen with the expansion of its air network of regional and global routes. Thus, the group's s expanded their participation in all markets where they operate and maintained their participation in three of the five domestic markets: LATAM Airlines Brazil, LATAM Airlines Chile, and LATAM Airlines Peru. In turn, LATAM Airlines Colombia increased its market share by 9 percentage points, with its quick reaction to allocate additional capacity in the Colombian market.
Sustainability
In 2023, the LATAM group made important advances in its sustainability strategy, structured around three pillars: Climate Change, Circular Economy and Shared Value. In the case of Climate Change, between 2021 and 2023, more than 250 thousand tons of CO2 were no longer emitted thanks to efficiency programs implemented by the group. Furthermore, compensation projects were ed that will allow the conservation of more than 575.000 hectares of floodable savannas in Colombia by 2030.
In August, LATAM and Airbus announced funding for a study by the Massachusetts Institute of Technology (MIT) t Program on the Science and Policy of Global Change (MIT t Program) that seeks to identify options for decarbonizing aviation in Latin America, the results of which will be released this year.
In Circular Economy, the group managed eliminate more than 1.700 tons of plastic non-reusable in all your operations from 2020 until the end of 2023. In parallel, the “Segundo Voo” program, which aims to give a second life to uniforms used through agreements with eight NGOs in the region, has already resulted in the creation of more than 15 thousand products.
In the Shared Value pillar, LATAM ended the year with almost 50 solidarity alliances in five countries in South America through the Avião Solidário program.
Clients
Continuing with its commitment to improving its product offering and transforming the enger experience, the LATAM group has incorporated the cabin in all
its flights and equipped 65% of its fleet with Wi-Fi, with 99% of the Brazilian 's fleet and more than 50% of the Colombian fleet being equipped with Wi-Fi.
In line with its service digitalization strategy, a new website was launched to promote complementary services and optimize enger service. Furthermore, there has been progress in the digitalization of airport services.
The satisfaction of engers in the LATAM group, according to the NPS (Net Promoter Score), increased by 2 percentage points (pp) compared to 2022, reaching an index of 48 pp. In turn, the satisfaction of cargo customers obtained an index of 58 pp in 2023, which represents an increase of 7 pp compared to the previous year.
During the year, LATAM strengthened its presence as the largest loyalty program in Latin America, with more than 45 million customers, being recognized as the “Best Program of the Year” by the Frequent Traveler Awards in 2023.
Furthermore, the LATAM group was awarded for the fourth consecutive year as the best airline group in the region at the last Skytrax World Airline Awards.
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