DALLAS — Today, LATAM (LA) announced its financial results for the fourth quarter and the full year 2023. The company reported a solid financial and operational performance during this period, with a net income of US$582 million.

For 2023, LA reported revenues of US$11.8 billion, a 23.9% increase compared to 2022. The company also achieved an adjusted operating margin of 11.3%. In the fourth quarter of 2023, LA's revenues reached US$3.3 billion, an 18.5% increase compared to the same period in the previous year. This growth was mainly driven by the sustained increase in passenger revenues, which grew by 24.3% compared to the fourth quarter of 2022.

LATAM closed 2023 with US$2.8 billion of liquidity, resulting from US$498 million of cash generation during the last twelve months. This allowed the company to achieve a net leverage of 2.1 times, the lowest in its history.

Regarding operational recovery, LA transported nearly 74 million passengers in 2023, reaching levels similar to those before the pandemic. This was driven by an increase in passengers transported in the domestic markets of the group affiliates in Chile, Brazil, Colombia, Ecuador, and Peru and a substantial increase of 50.1% in international passengers transported compared to 2022.

Sustainability, Passenger, Cargo Goals

LATAM also made significant progress in its sustainability strategy during 2023. The company reduced over 250 thousand tons of CO2 emissions between 2021 and 2023 through efficiency programs. Additionally, LATAM supported compensation projects to conserve over 575,000 hectares of flooded savannahs in Colombia by 2030. The company also reduced 96% of single-use plastics in all its operations and launched the "Second Flight" program, which gives a second life to old uniforms through agreements with NGOs in the region.

Regarding customer experience, LA introduced the Premium Cabin on all its flights and equipped 65% of its Narrow-Body fleet with Wi-Fi. The company also launched a new website to promote ancillaries and streamline passenger services. LA's passenger satisfaction, as measured by the Net Promoter Score, increased by two percentage points compared to 2022.

The cargo division achieved a satisfaction index of 58 percentage points in 2023, representing a seven percentage point increase compared to the previous year. LATAM Pass, the company's loyalty program, strengthened its presence as the most extensive loyalty program in Latin America, with over 45 million members.

Looking ahead, the Latin American airline group presented its guidance for 2024, expecting growth in passenger operations between 12% and 14% and projecting to surpass 2019 levels during the first quarter of 2024. The company also forecasts adjusted EBITDAR between US$2.6 billion and US$2.9 billion and an adjusted net leverage ratio between 1.8 and 2.0 times.

Featured image: LATAM Airlines Airbus A320s. Photo: Joao Pedro Santoro/Airways