LATAM Airlines Group reported a net profit of $145 million in the second quarter ending June (Q2), with passenger operations seeing an impressive 28.4% increase compared to 2022 and low fuel costs. Total revenues reached $2.6 billion and increased by $450 million compared to the same period last year.
The second quarter also saw the group announce several new routes that are expected to generate good revenues in the coming months. International operations long-haul and regional operations of various affiliates, have had a slower recovery compared to the affiliate’s domestic operations, increased 48.4% compared to 2022 in terms of capacity and reached 80.5% of 2019 levels.
Commenting on the results, Roberto Alvo, chief executive, LATAM Group said: “LATAM has been working systematically and with a long-term focus. Our financial results are the result of the combination of an effective business strategy, an attractive value proposition for customers, cost discipline, a robust network in the region, a globally-leading punctuality worldwide, and a solid balance sheet.”
The group’s passenger revenues increased 32.9% due to a robust travel demand environment and the recovery of international operations. Cargo revenues declined by 23.2% due to the continued softening of cargo yields.
LATAM Airlines Peru announced new routes, such as Lima-Aruba and Lima-Caracas. The airline also introduced three new routes, Medellin-Miami, LimaAtlanta, and Cartagena-Atlanta as a part of joint venture agreement with Delta Air Lines. The Group announced a second daily flight between Bogota and Atlanta were announced in the quarter, expanding capacity between North and South America.
LATAM Airlines Brazil announced a new interline agreement with Airlink. The new routes under the interline agreement will be available from September 2.
LATAM Airlines Colombia reached a domestic market share of 33% in the last quarter, due to the addition of five new aircraft to its fleet in March. It was also allocated slots in the Bogotá El Dorado Airport for the winter season, replacing those temporarily assigned in March, allowing the affiliate to maintain its increased capacity.
LATAM Airlines Group’s has posted two consecutive quarterly profits this year. It ended the first quarter with a profit of $122 million, carrying 16.95 million passengers.
Based on its strong performance, LATAM has updated its guidance, particularly with regard to operating margin, EBITDAR, leverage, and liquidity indicators, after incorporating the encouraging results of the first half of 2023 and a positive demand outlook. LATAM has said that the full-year adjusted operating margin is expected to be 10-11% with adjusted EBITDAR of $2.35–2.5 billion.