LATAM released today (2) its financial results for the second quarter of this year, maintaining the positive trend of recent months. At the end of the period, LATAM reported a net profit of US$ 145 million mainly explained by the increase in enger segment revenues and a lower fuel price during the quarter. In the first half of 2023, LATAM Airlines Group posted net income of US$267 million.
In the second quarter, operating income reached $2,6 billion, an increase of 20,2% over the same quarter of the prior year, while adjusted operating expenses were $2,4 billion, resulting in an operating margin adjusted 10,1% for the quarter.
The CFO of LATAM Airlines Group, Ramiro Alfonsín, states that “the good results achieved in the first half led the group to update its guidance (projection) for 2023. The projection is that the adjusted operating margin will be between 10% and 11%, increasing in relation to the previously announced 6% and 8%, and that the adjusted EBITDAR will be of US$ 2,35 billion to US$ $2,5 billion”.
The group continued to improve its balance sheet, quarter on quarter, generating US$110 million in cash during the period and gross liquidity of US$2,6 billion.
Bigger and better connectivity
In the second quarter of the year, consolidated operations (measured in ASKs) increased by 28,4% compared to the same period in 2022. International operations grew by 48,4% compared to the previous year, reaching 93% of operated capacity in 2019 .
Domestic operations in Brazil grew 18% compared to 2022 (measured in ASKs), while s' domestic operations in Colombia, Chile, Peru and Ecuador increased 6,5% year-on-year. During the second quarter, the group transported 17,1 million engers, 22,6% more than in the same quarter of 2022.
LATAM Airlines Colombia added 5 aircraft to its fleet, increasing its capacity by approximately 20%. As a result, the Colombian subsidiary increased its market share from 24% in the first quarter to 33% in the second quarter.
The period was particularly active in connectivity. LATAM Airlines Peru announced new routes, such as Lima-Aruba and Lima-Caracas. Within the scope of the t Venture with Delta, three new routes and an increase in frequency on an existing one were announced, providing better connectivity between North America and South America. Two of them start operating in October: LATAM Airlines Colombia, with the Medellín-Miami route; LATAM Airlines Peru, with Lima-Atlanta and Delta Airlines with a second daily flight on the Atlanta-Bogotá route. The third new route announced is Cartagena-Atlanta, operated by Delta Air Lines, starting operations in December.
LATAM Airlines Brasil announced a new agreement with the South African airline Airlink that will be available from September 2, the date on which the Brazilian branch will restart its flights to Johannesburg from São Paulo. With the new agreement, LATAM engers will have access to more than 40 destinations across Africa.
In the group's cargo operations, during the second quarter, the group announced two new cargo routes, Miami-Guayaquil and Miami-São José dos Campos, strengthening the Miami hub and expanding the group's cargo network. It also added its 18th freighter to its cargo branches, which is focused on transporting flowers from Colombia and Ecuador to the world, completing a total of 65 weekly flights of cargo planes from these countries.
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