During the quarter, the consolidated load factor was 82.2%, which represents an improvement of 1.8 percentage points compared to the second quarter of 2023. Internationally, the load factor was 84.3%. Latam Airlines Brazil's domestic operations experienced the largest increase, with an improvement of 2.5 percentage points compared to the second quarter of 2023, reaching 79.8%
The Latam airline today announced its financial results for the second quarter of 2024, maintaining the positive trend in its operational and financial performance.
Latam had a net profit of US$146 million during the second quarter, which was driven by growth and healthy margins, accumulating US$405 million in net profits when considering the first six months of the year.
Meanwhile, total operating income reached US$3,030 million in the period, which is mainly explained by the increase in passenger income after the continuous growth of the international segment, and the good performance of the domestic subsidiaries, even in season. low.
In turn, LATAM reported a solid adjusted EBITDAR of US$619 million for the quarter, 10.7% higher than the same period in 2023, due to the increase in operated capacity and the containment of unit costs excluding the fuel variable.
During the second quarter of 2024, the LATAM group transported 19.1 million passengers, representing an increase of 11.7% compared to the same period last year. Regarding consolidated capacity, measured in available seat kilometers (ASK), this increased by 16.2% in the second quarter compared to the same quarter in 2023. This growth was achieved despite the impact that LATAM Airlines Brasil faced with flooding in the state of Rio Grande do Sul and the suspension of operations at the Salgado Filho International Airport in Porto Alegre (POA) starting in May.
During the quarter, the consolidated load factor was 82.2%, which represents an improvement of 1.8 percentage points compared to the second quarter of 2023. Internationally, the load factor was 84.3%. LATAM Airlines Brazil's domestic operations experienced the largest increase, with an improvement of 2.5 percentage points compared to the second quarter of 2023, reaching 79.8%
LATAM Airlines Group CFO Ramiro Alfonsín said that “LATAM has achieved strong quarterly results, driven by an increase in capacity and robust financial performance, despite being in the low season in South America and having a macroeconomic environment that has put pressure on on exchange rates. “The diversified revenue structure as well as the group’s ability to reposition capacity across markets will allow it to be in line with projections, supported by historically stronger quarters to come and a stable demand environment.”
LATAM ended the quarter with a liquidity position of US$3,000 million, having generated US$177 million of cash in the period, excluding the payment of dividends which was US$175 million in May 2024.
RECENT MILESTONES
Recently, LATAM Airlines Group SA achieved a significant milestone by reopening and relisting its American Depositary Receipts (ADRs) on the New York Stock Exchange. This move will open up new investment opportunities for a broader group of investors, giving them the opportunity to participate in the growth and success of the group.
In turn, LATAM achieved the successful renegotiation of its revolving credit lines, which resulted in an extension and increase of US$450 million until July 2029. Consequently, the LATAM group's total revolving credit lines now amount at an amount of US$1,550 million, giving the group greater financial flexibility and liquidity.
During the quarter, the group continued working on its sustainability strategy, which turned three years old. During the period, the preliminary results of the study “Options to decarbonize aviation in Latin America in a sustainable way” were released, developed by the Massachusetts Institute of Technology (MIT) Joint Program on Global Change in conjunction with LATAM and Airbus. On the other hand, the "Solidarity Plane" program transported more than 300 modular homes, in addition to 207 tons of supplies and 130 volunteers to go to support people affected by the floods in Rio Grande do Sul.
In terms of recognitions, LATAM Airlines Group was awarded “Best Airline in South America” for the fifth consecutive year, and “Best Airline Crew in South America” for the third consecutive year at the Skytrax 2024 World Airline Awards. In turn, the group's cargo subsidiary was recognized as the most sustainable cargo airline in America at the Freighterweek Sustainability Awards.
