The group updated its projections for 2024, reporting that, in terms of capacity, it expects growth of between 15% and 16% compared to the previous year.
This morning, the symbolic “Ring the Bell” of Latam Airlines Group was held on the New York Stock Exchange, a milestone that celebrated its return to the main stock market in the world, from which it left in 2020 after the impacts of the pandemic and the financial restructuring process it went through. The airline was first listed on the New York Stock Exchange in 1997, as LAN Chile, and was the first Latin American airline to market American Depositary Receipts (ADR).
During the meeting, the Chairman of the Board of Directors of Latam Airlines Group, Ignacio Cueto, highlighted that “today we are beginning a new chapter in the history of Latam. A chapter in which we aspire to lead, innovate and grow in ways that positively impact our customers, the communities we serve, the markets in which we compete and the world in general.”
For his part, the CEO of Latam Airlines Group, Roberto Alvo, said that “we are very proud because we are returning to the main stock market in the world and we are doing so at a great time. This has been a year marked by solid results in different areas, which has allowed us to update the financial projections in a very positive way for 2024. Being here today is a recognition of the effort and dedication of all of us who are part of the LATAM group, which drives us to move forward with more strength and determination.”
The first Latam “Investor Day” was later held, attended by investors and analysts and featuring presentations by four Latam executives: Roberto Alvo, Chief Executive Officer; Ramiro Alfonsín, Chief Financial Officer; Hernán Pasman, Chief Operating Officer and Paulo Miranda, Chief Customer and Experience Officer.
In this regard, the firm updated its projections for 2024. In terms of capacity, measured in available seat kilometers (ASK), Latam said it expects growth of between 15% and 16% compared to the previous year. In turn, the group projects an adjusted unit cost of passenger operations excluding fuel of between 4.2 and 4.3 cents, lower than originally projected.
Latam announced that it expects an annual adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs ) of between US$ 3,000 million and US$ 3,150 million. Finally, the group expects to continue reducing its adjusted net leverage ratio to 1.6x - 1.7x times at the end of the year.
The Latam Group has secured an order for more than 120 aircraft until 2030, supporting its future growth. During the Investor Day, Latam's commitments with Airbus and Boeing and lessors were presented, amounting to 106 narrow body aircraft (from 100 to 150 kW). narrow-body, single-aisle) and 19 wide-body aircraft (wide-body, two-aisle) including the recent purchase of 10 Boeing aircraft, securing one of the few available positions until 2030. All of the above is part of the group's commitment to have one of the most modern and efficient fleets in South America.
Currently, LATAM has 341 aircraft , 56 Boeing passenger planes (models 767, 777 and 787) and 263 Airbus aircraft (models A319, A320, A320neo, A321 and A321neo). During the Investor Day, LATAM stressed that it has guaranteed competitive prices for 90% of its fleet until 2029, with increases only due to the incorporation of new generation aircraft.
