LATAM Airlines Group published its financial and operational results for the fourth quarter and the full year of 2023, with net income of $582 million. Throughout the year, the airline achieved total revenues of $11.789 billion, marking a 23.9% increase compared to the previous year, and achieved an adjusted operating margin of 11.3%. Specifically, in the last quarter of the year, LATAM experienced a revenue increase of 18.5% compared to the same period of the previous year, amounting to $3.251 billion, largely driven by a 24.3% growth in passenger revenue.
The company also highlighted an improvement in its capital structure, ending the year with liquidity of $2.815 billion and a net debt ratio of 2.1 times, the lowest in its history. These results are the fruit of cash generation of $498 million over the last twelve months.
“This performance is a reflection of a culture where we prioritize the customer, work to deliver better service, maintain a competitive cost structure, incorporate innovation and technology, strive for a sustainable business, and contribute to the societies where LATAM group companies operate. This focus enables us to deliver a better product, which has translated into very good financial results”, said Roberto Alvo, CEO of LATAM Airlines Group.
“LATAM group transported nearly 74 million passengers, reaching levels similar to 2019, prior to the pandemic. And as a result, 2023 closed with US$2.5 billion of adjusted EBITDAR, exceeding the 2023 guidance projections and the updated business plan published in August 2022”, added Ramiro Alfonsín, CFO of the airline.
LATAM detailed that it received 30 new aircraft in 2023 (closing with a fleet of 333), launched 21 new routes, and significantly improved its presence in key markets, including a 50.1% increase in international passengers compared to 2022. LATAM also made progress in its sustainability agenda, reducing its CO2 emissions and eliminating 96% of single-use plastics from its operations.
The company projects growth in its passenger operations between 12% and 14% for 2024, with expectations of an adjusted EBITDAR between $2.600 billion and $2.900 billion. This optimism is based on continuous recovery and expansion, with plans to surpass pre-pandemic operation levels in the first quarter of the year.
Customer satisfaction has improved, with an increase in the Net Promoter Score from 46 pp to 48 pp in the passenger segment and from 51 pp to 58 pp in cargo.
Other highlights from LATAM include the incorporation of Premium cabin on all its flights, equipping 65% of its fleet with Wi-Fi (99% in the
Brazilian subsidiary and more than 50% in the Colombian), launching a new website to boost the sale of complementary services, digitalization of airport services, and the consolidation of LATAM Pass as the largest loyalty program in Latin America with more than 45 million members.
The complete 2023 results of LATAM Airlines Group can be seen in this document: LATAM Airlines Group 2023 Results.
