LATAM Airlines presented its financial and operating results for the first quarter of 2023. Following its emergence from Chapter 11 bankruptcy proceedings in the United States, the company recorded another positive period, reporting a profit of 121.8 million dollars.
LATAM Airlines closes first quarter with profit
Ramiro Alfonsín, LATAM Group CEO, highlighted the “solid results” and remarked: “In the first quarter of the year we recorded a double-digit adjusted operating margin and returned to bottom-line profitability, accompanied by a significant increase in liquidity, reflecting LATAM’s strong business and financial profile”.
On the other hand, he said that the reorganisation process allowed LATAM to increase its participation in the different markets in which it operates. In this regard, he said they plan to continue this trend as new opportunities “attractive in terms of profitability and cash generation” arise.
See also: Lufthansa reduces loss in the first quarter and remains optimistic ahead of the summer
Key LATAM Airlines financial and operating results for the first quarter of 2023
- The company reported a net margin of 121.8 million dollars.
- Revenues increased 43.2% compared to the first quarter of 2022 and reached 2.8 billion dolars.
- Operating expenses reached 2.5 billion dollars, 23.8% higher than reported in the same period last year, mainly due to increased activity. The operating margin was 10.5%.
- Compared to the first quarter of 2022, the average fuel price (excluding hedges) rose 14% and the company spent 41.2% more on fuel.
- Other operating expenses increased 5.5% to 273 million dollars, mainly as a result of higher variable costs associated with the company’s operation.
- Passenger revenues rose 61.1% compared to the first quarter of 2022 to 2.3 billion dollars. According to the company, this is mainly explained by the higher number of operations (especially from its subsidiary in Brazil) and a context marked by growing demand and healthy fares.
- Freight revenues decreased by 12.4% to 377 million dollars. However, it was 43.2% higher than in the first quarter of 2019.
- The company increased its liquidity to 2.5 billion dollars and reduced the adjusted leverage ratio to three times.
- At the end of the quarter, LATAM Group’s passenger fleet consisted of 14 Boeing 767-300ER, 10 Boeing 777-300ER, 4 Boeing 787-8 and 21 Boeing 787-9. In addition, it operated 40 Airbus A319, 130 Airbus A320, 16 Airbus A320neo and 49 Airbus A321. On the other hand, the cargo fleet consisted of 17 Boeing 767-300F.
See also: LATAM to boost flights between Fortaleza and Miami
