LATAM Airlines Group Reports Third Quarter 2023 Net Profit of $232 Million
LATAM Airlines Group has reported a third quarter 2023 net profit of $232 million on a year-over-year increase in revenue by 18.1 percent to $3.1 billion. At September 30, 2023, the Group had total liquidity of $2.7 billion.
On Monday (October 30, 2023), LATAM Airline Group reported their third quarter financial results for the period ending September 30, 2023. The Group reported a third quarter net profit of $232 million on a year-over-year increase in revenue of 18.1 percent to $3.1 billion. LATAM’s third quarter passenger revenue per available seat kilometer (PRASK) increased 9.1 percent compared to the same period last year to 7.6 cents, while system costs per available seat kilometer (CASK) declined 7.7 percent to 7.6 cents. System costs excluding fuel (CASK-ex) increased 6.5 percent to 4.9 cents. LATAM's third quarter cargo revenue declined year-over-year by 20.2 percent to $329 million, while other revenue grew 0.8 percent to $32 million, primarily attributable to an increase in LATAM Pass revenue, as well as LATAM Travel revenue. At September 30, 2023, the Group had cash and cash equivalents totaling $1.6 billion, and undrawn revolving credit facilities totaling $1.1 billion
In Monday’s announcement, LATAM’s Chief Financial Officer, Ramiro Alfonsin, said,
“We are very proud of the financial performance that the group has shown during this third quarter and throughout the year, which has been progressively improving thanks to systematic work toward a long-term vision. At the end of this quarter, the group reported a record result in revenues following the consistent recovery in passenger air transportation. In turn, the capital structure of LATAM Airlines Group S.A continues to be incomparable in the region, in terms of liquidity and leverage, which, added to the unmatched connectivity that LATAM group offers at a regional level, demonstrates that it is on the right path.”
During the third quarter, LATAM Airlines Group took delivery of four Boeing 787-9 Dreamliners and seven narrowbody aircraft, including the Group’s first Airbus A321neo. The Group also placed an incremental order for 13 additional A321neos, which are part of an order for 111 Airbus A320 Family aircraft. At the close of the third quarter, LATAM had 245 Airbus narrowbody aircraft, 58 Boeing widebody aircraft and 18 Boeing freighters, for a fleet total of 321 aircraft.
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 Group operates a fleet of Boeing 767, 777, and 787s, as well as Airbus A319, A320, A320neo, A321 and A321neo 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 18 dedicated freighters, which will be expanded to 20 by 2024.
Source: LATAM Airlines Group