LATAM reported first quarter net income of US$258 million
LATAM Airlines Group released its financial results for the first quarter of 2024, maintaining the positive trend in its operating and financial performance in a context of healthy demand, efficient costs and solid market shares.
The group reported total operating revenues of US$3,321 million in the first quarter, up 18.4% compared to the same period of 2023, mainly due to a 21% increase in passenger revenues. Net income for the period was US$258 million.
LATAM not only posted a new record adjusted EBIT margin of 13.9% and adjusted EBITDAR generation of US$796 million in the period, but also updated its guidance for 2024 based on the solid performance in the first quarter of the year and positive demand behavior. The group projects annual adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs) between US$2.75 billion and US$3.05 billion, which represents an increase from the guidance provided in December last year of between US$2.6 billion and US$2.9 billion.
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LATAM Airlines Group CFO Ramiro Alfonsín said that “the systematic work of the LATAM group has translated into solid and consistent financial and operational results in the first quarter, driven by the peak vacation season, with traffic already exceeding pre-pandemic indicators. These results led the group to update its 2024 guidance upward, which in the case of adjusted EBITDAR, translates into an increase of between approximately 10% and 22% versus the previous year.”
LATAM closed the quarter with US$2,951 million of liquidity, driven by a cash generation of US$137 million during the period. These figures reflect its continued strong capital structure, as well as the group’s continued focus on cost efficiency, which has allowed it to maintain its ex-fuel passenger CASK at US$4.3 cents.
At the operational level, in the first three months of the year, the group transported 20.2 million passengers, which represents an increase of 19.4% compared to the same period of 2023. This is explained by the 32.5% increase in passengers transported in the international segment, 26.0% in the domestic markets of the subsidiaries in Chile, Colombia, Ecuador and Peru, and 9.1% in the domestic market of the subsidiary in Brazil, reflecting the LATAM group’s commitment to provide efficient and reliable services to its customers through a unique network in the region.
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