LATAM Reports Fourth Quarter Net Loss of $962.5 Million, Full Year 2020 Net Loss of $4.5 Billion
LATAM Airline Group S.A. has reported a fourth quarter net loss of $962.5 million on a 69 percent revenue decline to $898 million. For the full year, the Group reported a net loss of $4.5 billion on a year-over-year revenue decline of 58 percent to $4.3 billion.
On Tuesday (March 9, 2021), LATAM Airlines Group S.A. reported their fourth quarter and full year 2020 financial results. Fort the fourth quarter, the Group reported a loss of $96.25 million on a 69 percent revenue decline versus Q4 2019, while for the full year, LATAM reported a net loss of $4.5 billion on a year-over-year revenue of 58 percent to $4.3 billion. The company’s quarterly and annual revenue declines were partially offset by cargo revenue improvements of 26.7 percent and 13.7 percent, respectively. The Group closed the fiscal year with $3 billion in liquidity including $1.7 billion in cash and $1.3 billion in a committed DIP financing line.
In Tuesday’s announcement, LATAM Airlines Group’s CEO, Robert Alvo, said,
“2020 was the most challenging year in history for the aviation industry and for LATAM. Although the COVID-19 crisis had profound effects on the group and its operations, and will continue to do so for a while, this context has allowed us to make decisions for change. We will emerge as a closer, simpler, more agile and more efficient company. We have no doubt that when the crisis passes, LATAM will operate as a strengthened group.”
During 2020, LATAM Airline Group and subsidiaries in Chile, Peru, Colombia, Ecuador, Brazil and the U.S. filed for a voluntary reorganization process under the U.S. Chapter 11 financial reorganization statute and the company is currently working through the process. Through the Avión Solidario program, LATAM kept South America connected during the pandemic and transported over 1,000 tons of medical supplies. During the fourth quarter, the carrier began transporting vaccine doses to South America, including the free distribution of over 13 million doses in Brazil, Chile, Ecuador and Peru.
LATAM Airlines Group is the leading airline group in Latin America, offering service to five domestic markets (Brazil, Chile, Colombia, Ecuador and Peru) as well as international service to Europe, the United States and the Caribbean. The Group operates a fleet of Boeing 767, 777 and 787s and Airbus A350, A321, A320, A320neo and A319s. LATAM Airlines Group’s shares are traded on the Santiago de Chile stock exchange and its ADRs are traded on the over-the-counter markets in the U.S.
Source: LATAM Airlines Group