LATAM Airlines Group reported that despite posting a net loss of US$573.1 million in the third quarter, the group maintains a solid financial position of US$3.3 billion composed of US$866 million in cash and short-term investments and US$2.45 billion corresponding to the DIP financing agreement.
LATAM reported revenues of US$512.9 million between July and September, an 80.8% decrease compared to the same period of the prior year. This decline is a result of operational restrictions caused by COVID-19 and reduced passenger demand.
Cargo revenues increased 12.8%, driven by an increase in frequency of flights from Bogotá to Miami, and from Brazil to China and to the United States.
“These results reflect the profound impact of COVID-19 on the airline industry. However, the group has taken measures and has the resources to face this crisis. We will continue focusing on the reorganization process and, in parallel, working on projects like the alliance with Delta or digital transformation, which are part of the group’s long term vision,” commented Roberto Alvo, CEO of LATAM Airlines Group.
During the quarter, operational costs amounted to US$1.0776 billion, which represents a decrease of 55.0% compared with the same quarter of 2019, as a result of the diminished passenger operation and efforts made by LATAM to decrease fixed costs.
In September, LATAM received approval from the US Court for DIP financing of US$2.45 billion, of which US$1.15 billion has already been drawn, the balance remains available based on the group’s requirements. The airline states that this reflects the confidence that both the financial markets and shareholders have in LATAM’s recovery.