COVID-19 crisis impacts results of LATAM Airlines Group

LATAM Airlines Group closed fiscal year 2020 with US $ 3 billion of available liquidity (US $ 1.7 billion in available cash added to US $ 1.3 billion in committed DIP financing line), in a year marked by travel restrictions and the sharp contraction in demand passengers due to COVID-19. To cope with the pandemic, the group implemented an important cost reduction policy, reducing costs by 38.1% during the year compared to 2019.

"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 It has allowed us to make reform decisions. We will emerge as a closer, simpler, more agile and more efficient company. We have no doubts that when the crisis passes, LATAM will operate as a strengthened group ", commented Roberto Alvo, CEO of LATAM Airlines Group.

During the last quarter of the year, total revenues were US $ 897.5 million, which represents a drop of 68.7% compared to the same period of the previous year. This decline was partially offset by a 26.7% increase in cargo revenues, in response to the strong demand for these types of services during the pandemic. On the other hand, operating costs fell 44.5% in the fourth quarter of the year explained by lower passenger operations and the group's efforts to reduce its fixed costs. The group ended the quarter with losses of US $ 962.5 million.

Milestones

2020 was marked by several relevant milestones. LATAM Airlines Group and its subsidiaries in Chile, Peru, Colombia, Ecuador, the United States, and Brazil have entered the voluntary reorganization process under Chapter 11. Currently, LATAM is working on its reorganization plan.
Towards the end of the year, LATAM launched the e-business unit, a new, simpler and more user-friendly digital experience for customers in Ecuador, Colombia, Chile and recently in Brazil, allowing the passenger to have control of their itinerary at all times.
Last year, the highest satisfaction rates of our customers were achieved, through the Net Promoter Score (NPS) measurement since its implementation in 2008. Passengers valued the service on board during the trips, the security measures adopted since the start of the pandemic and the excellent punctuality of flights.
Through the Avión Solidario program, the group managed to keep South America connected to the world in a context of pandemic. So far, more than a thousand tons of medical supplies have been transported, benefiting Argentina, Brazil, Chile, Colombia, Ecuador and Peru. More than 1,100 organs and tissues were mobilized within South America and the transfer of stem cells was completed for eight people with blood cancer, who were able to receive a second chance at life. At the same time, the transport of more than 900 health professionals was supported for different needs related to Covid-19. At the end of the year, LATAM began the transfer of thousands of vaccines to South America and the free distribution of more than 13 million doses in the national markets of Brazil, Chile, Ecuador and Peru.