LATAM released its financial results for the third quarter, presenting its first positive operating result of the year, reaching US$ 63,1 million in a challenging macroeconomic context and just days after exiting its Chapter 11 process.
In addition, the company reached a EBITDAR (earnings before interest, taxes, amortization and depreciation and aircraft leasing) positive for the fourth consecutive quarter, reaching $ 399,4 million.
“This is a quarter that follows the trajectory of recovery. We achieved better financial results for both engers and cargo, with a level of total revenue very much in line with pre-pandemic numbers, in addition to a significant operational recovery. In addition, we recorded the fourth consecutive quarter with positive EBITDAR. We remain cautiously optimistic for the future by monitoring fuel prices and macroeconomic variables.”, Said Ramiro Alfonsin, CFO of the LATAM Group.
LATAM reported a net loss of $296 million for the quarter, compared to net income of US$86,3 million in 2019. Losses are primarily due to LATAM Chapter 11 filing reorganization expenses and costs associated with DIP financing.
Operating capacity reached 81% of 2019 levels in Q72,6, compared with a 2022% recovery from Q100 XNUMX. Domestic markets achieved a recovery close to XNUMX% compared to pre-pandemic levels; at the same time, the international and corporate segments experienced a strong increase in recent months.
In September 2022, LATAM served a total of 142 destinations, equivalent to 98% of what was flown before the pandemic (there were 145 destinations in December 2019).
In the period, the operating income totaled $2,58 billion, in line with 2019 levels, reaching a 97% increase compared to the same period in 2021.
In parallel, the operating expenses reached $2,52 billion (+5,3% compared to 2019), which is mainly explained by the price of fuel, which increased by 88,4% compared to the same quarter of 2019. On the other hand, operating expenses, excluding fuel, decreased 15,8% compared to the same period of 2019.
It is worth mentioning that, on November 3, the group successfully completed its reorganization process in the United States, which it voluntarily ed in May 2020 to reduce its debt, access new sources of financing and transform its business into response to the global pandemic.
LATAM emerged from Chapter 11 strengthened with more than US$2,2 billion in liquidity (approximately US$1,1 billion in cash and US$1,1 billion in undrawn revolving credit facilities), US$10,3 billion in issued capital and $6,8 billion in debt.
An important milestone in the period was the approval of the t Venture (JV) between Delta and LATAM, which will allow engers to access more than 300 destinations between the US/Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru and Uruguay). The agreement will allow airlines to increase their level of cooperation in the mentioned markets, which will translate into a greater number of routes, more and better connections and the strengthening of the benefits of frequent flyer programs.
