LATAM posted net income of US$146 million during the second quarter, driven by growth and healthy margins, and accumulated US$405 million in net income when considering the first six months of the year.
Meanwhile, total operating revenues reached US$3.03 billion in the period, mainly explained by the increase in passenger revenues following the continued growth of the international segment, and the good performance of the domestic subsidiaries, even in the low season. In turn, LATAM reported a solid adjusted EBITDAR of US$619 million for the quarter, 10.7% higher than the same period in 2023, due to the increase in operated capacity and the containment of unit costs excluding the fuel variable.
During the second quarter of 2024, the LATAM Group transported 19.1 million passengers, representing an increase of 11.7% compared to the same period last year. Consolidated capacity, measured in available seat kilometers (ASK), increased by 16.2% in the second quarter compared to the same quarter in 2023. This growth was achieved despite the impact that LATAM Airlines Brasil faced with the floods in the state of Rio Grande do Sul and the suspension of operations at Salgado Filho International Airport in Porto Alegre (POA) starting in May.
During the quarter, the consolidated load factor was 82.2%, representing an improvement of 1.8 percentage points compared to the second quarter of 2023. At the international level, the load factor was 84.3%. LATAM Airlines Brasil's domestic operations experienced the largest increase, with an improvement of 2.5
percentage points compared to the second quarter of 2023, reaching 79.8%.
LATAM Airlines Group CFO Ramiro Alfonsín said: “LATAM has delivered solid quarterly results, driven by increased capacity and robust financial performance, despite being in the low season in South America and having a macroeconomic environment that has put pressure on exchange rates. The diversified revenue structure, as well as the group’s ability to reposition capacity across markets will allow it to be in line with projections, supported by historically stronger quarters ahead and a stable demand environment.”
LATAM ended the quarter with a liquidity position of US$3 billion, having generated US$177 million of cash in the period, excluding dividend payments of US$175 million in May 2024.
Recent notable milestones
Recently, LATAM Airlines Group SA achieved a significant milestone by reopening and re-listing its American Depositary Receipts (ADRs) on the New York Stock Exchange.
This move will open up new investment opportunities for a broader group of investors, giving them the chance to participate in the growth and success of the group.
In turn, LATAM successfully renegotiated its revolving credit lines, resulting in an extension and increase of US$450 million until July 2029.
As a result, LATAM Group's total revolving credit lines now amount to US$1.55 billion, providing the Group with greater financial flexibility and liquidity.
During the quarter, the group continued to work on its sustainability strategy, which turned three years old. During the period, the preliminary results of the study were released.
“Options to decarbonize aviation in Latin America in a sustainable way”, developed by the Massachusetts Institute of Technology (MIT) Joint Program on Global Change in conjunction with LATAM and Airbus. On the other hand, the “Avión Solidario” program transported more than 300 modular homes, in addition to 207 tons of supplies and 130 volunteers to help people affected by the floods in Rio Grande
do Sul.
In terms of recognition, LATAM Airlines Group was awarded "Best Airline in South America" for the fifth consecutive year, and "Best Airline Crew in South America" for the third consecutive year at the 2024 Skytrax World Airline Awards. In turn, the group's cargo subsidiary was recognized as the most sustainable cargo airline in the Americas at the Freighterweek Sustainability Awards.