LATAM Airlines continued its recovery during the first quarter of the year: the airline highlighted that the increase in revenues was favored by a context of easing restrictions on air travel, which had a strong impact on the industry and the reorganization plan that is helping to adjust costs.

Roberto Alvo, CEO of LATAM Airlines Group, commented: «We have had a significant improvement in our results compared to the same period of 2021, in an environment that still continues to be challenging». According to the executive, the company remains «cautiously optimistic about the future» because, although passenger demand has increased, the continued increase in fuel prices is «closely watched».

Main financial and operating results

  • During the first three months of 2022, the group’s consolidated capacity, measured in seats per mile offered, reached 68.2% of the level recorded in the same period of 2019. Compared to the first quarter of 2021, the increase was 89.7%. This positive result was driven by the operations of LATAM’s domestic subsidiaries in Brazil, Chile, Colombia, Ecuador, and Peru.
  • Total revenues amounted to 1.959 billion dollars. The figure represents 22.4% less than in the same period of 2019, but 114.5% more than in the first quarter of 2021.
  • Revenue from commercial passenger flight operations fell 31.4% compared to 2019. Compared to the first three months of last year, they increased 199.1%.
  • Following a current trend in the air market, LATAM’s cargo subsidiary operations contributed revenues of 430.7 million dollars. The figure represents a 63.5% increase when compared to the first quarter of 2019.
  • Total costs reached 2,097 million dollars. They decreased by 14.2% compared to the same period of 2019.
  • According to the company, the measures implemented since the beginning of its reorganization process contributed to the reduction in costs per seat and per mile. The expense was 5.2 cents, 6.8% lower than during the last quarter of 2021. The improvement was of 29.3% year-over-year.
  • From higher ticket sales, operating costs also increased. These included fuel expenses, compensation payments, benefits, and commissions.
  • The company highlighted the increase in fuel prices, a factor that has impacted the industry in recent months. According to LATAM, its value reached 3.25 dollars per gallon, excluding hedges. The figure means an increase of 75.8% compared to the first three months of 2021 and 29.9% compared to the last three months of the year.
  • The group posted net losses of 380 million dollars. Thus, it managed to reduce by 11.8% the losses for the same period of 2021.
  • On May 6th, LATAM reported the results of the voting on its Reorganization Plan under Chapter 11 of the United States Bankruptcy Code. According to the report, sufficient support was achieved by approximately 82% in dollar terms and about 65% of the number of creditor voters in the classes affected by the plan.

Progress in sustainability and corporate social responsibility

LATAM highlighted the sustainability measures implemented during the first quarter of the year. The company launched «Viernes Vuela Neutral» («Fridays Fly Neutral»), an initiative to offset carbon emissions from emblematic routes on Fridays by supporting ecosystem protection projects in Latin America.

The group also introduced a new sustainable «Eco Kit» on board. All plastic items used to wrap headphones, blankets and pillows were replaced by reusable materials.

The company also underlined its support for UNHCR, the United Nations High Commissioner for Refugees. Through its «Avión Solidario» («Solidarity Plane») program, it provided a free passenger and cargo transportation service. It also added two new alliances with medical institutions. The group partnered with the Cardioinfantil Foundation in Colombia and the Committee of Foundations of the Global Initiative to Fight Childhood Cancer in Peru.

See also: Copa Holdings reported a net profit of US$19.8 million

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