LATAM Group Reports Robust Q2 2024 Results

DALLAS – LATAM Group (LA) published its financial results for the second quarter of 2024, continuing its positive operating and financial performance trend. The group achieved a net income of US$146 million, driven by robust growth and margins, bringing the total net income for the year's first half to US$405 million.

LA reported total operating revenues of US$3,030 million, primarily attributed to the increase in passenger revenues due to the ongoing growth of international operations and the strong performance of domestic affiliates, even during the low season.

The group reported a solid adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) of US$619 million for the quarter, marking a 10.7% increase in the same period in 2023. This EBITDAR improvement is mainly due to increased capacity and the containment of unit costs, excluding fuel.

Increased Passenger traffic

Despite challenges such as the flooding in Rio Grande do Sul and the suspension of operations at Salgado Filho International Airport in Porto Alegre since May, LA saw increased passenger traffic.

During the second quarter of 2024, the LATAM Group transported 19.1 million passengers, an 11.7% increase from the same period in the previous year. Consolidated capacity, measured in available seat kilometers (ASK), increased by 16.2%.

The consolidated load factor improved by 1.8 percentage points, reaching 82.2%. The international segment recorded a load factor of 84.3%, while LATAM Airlines Brazil's domestic operations experienced a 2.5 percentage point increase, achieving a load factor of 79.8%.

"LATAM has achieved solid quarterly results, driven by an increase in capacity and strong financial performance, despite being in the low season in South America and facing a macroeconomic environment that has put pressure on foreign exchange rates. The diversified revenue structure, as well as the group's ability to reallocate capacity among markets, will allow results to be in line with the guidance, supported by historically stronger quarters to come and a stable demand environment.", said Ramiro Alfonsín, LATAM Airlines Group CFO.

LATAM ended the quarter with a liquidity position of US$3,000 million, generating US$177 million in cash during the period, excluding dividend payments of US$175 million in May 2024.

The airline currently has 340 aircraft, including 319 passenger and 21 cargo aircraft, and expects to have 346 by the end of the year.

Recent Milestones

The airline recently achieved a milestone by successfully reopening and relisting its American Depositary Receipts (ADRs) on the New York Stock Exchange, expanding investment opportunities for a broader investor base.

The group also renegotiated its revolving credit facilities, extending and increasing them by US$450 million until July 2029. This brings the total revolving credit facilities to US$1,550 million, enhancing financial flexibility and liquidity.

LA Group continued its efforts toward sustainability, reaching the three-year mark in its strategy. Preliminary results of the "Options to Decarbonize Aviation in Latin America in a Sustainable Way" study, developed in collaboration with MIT and Airbus, were also presented.