LATAM Airlines Group Reports First Quarter Net Profit of $121.8 Million
LATAM Airlines Group has reported a first quarter net profit of $121.8 million on a year-over-year increase in revenue of 43.2 percent to $2.8 billion. At March 31, 2023 the Group had $2.5 billion in total liquidity.
On Thursday (May 4, 2023), LATAM Airlines Group reported their first quarter financial results for the period ending March 31, 2023. The Group reported a first quarter net profit of $121.8 million on a year-over-year increase in revenue of 43.2 percent to $2.8 billion. LATAM’s consolidated operations increased 26.3 percent versus Q1 2022, and domestic flights from Brazil increased 21.4 percent compared to the same period last year. Operations for subsidiaries in Colombia, Chile, Peri and Ecuador decreased year-over-year by 2.3 percent, while international operations (regional and long-haul) increased by 26.3 percent compared to Q1 2022. LATAM ended the first quarter with liquidity totaling $2.5 billion.
In Thursday’s announcement, LATAM Airlines Group’s Chief Financial Officer, Ramiro Alfonsin, said,
“After 2022, in which the group completed its financial restructuring, LATAM continues to grow. The first quarter result is a solid reflection of the more efficient cost structure after the initiatives implemented during the reorganization process, accompanied by a healthy demand environment. As a result, LATAM generated US$199 million of cash in the first quarter and had a positive net income of US$122 million.”
During 2023, LATAM will restart service between Santiago and Melbourne, while LATAM Brazil will also restore service between São Paulo and Johannesburg. Additionally, the company expects to take delivery of 14 Airbus A320neo Family aircraft and six Boeing 787 Dreamliners during the second half of 2023, all of which have already been financed.
LATAM Airlines Group S.A. is the leading airline group in Latin America, offering service in five domestic markets (Brazil, Chile, Colombia, Ecuador and Peru) as well as international service within Latin America and to Europe, Oceania, the United States and the Caribbean. The airline will also resume service between São Paulo and Johannesburg in mid-2023. The Group operates a fleet of Boeing 767, 777, and 787s, as well as Airbus A319, A320, A320neo, A321 aircraft. LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the LATAM Airlines freight subsidiaries. In addition to passenger aircraft belly hold cargo capacity, the Group operates a fleet of 16 dedicated freighters, which will be expanded to 20 by 2024.
Source: LATAM Airlines Group