LATAM Airlines registers revenues of US $ 888.7 million in the second quarter
The company closed with US $ 2.3 billion of available liquidity (US $ 1.3 billion in available cash and US $ 800 million in committed DIP financing line)
As part of the delivery of the results for the second quarter of the year, the LATAM Group reported that it foresees better operational prospects for the next six months, despite the profound impact of the pandemic in Latin America so far this year. In this way, the group plans to reach a capacity greater than 50% (measured in ASK) by the end of the third quarter of 2021, which would represent the highest level of LATAM operation since the pandemic began.
In turn, the group reported that it ended the quarter with US $ 2.3 billion of available liquidity, US $ 1.5 billion in cash and US $ 800 million in committed DIP financing line.
Roberto Alvo, CEO of LATAM Airlines Group, said that “the new waves of the pandemic in the region generated a complex semester, which did not allow us to continue recovering our operation as we expected. However, progress on our restructuring plan was positive. In addition, we maintained our global leadership in punctuality, accelerated our cost reduction, launched our sustainability and inclusion plans, and ensured that our passengers flew comfortably and safely. We look forward to a more active second semester, always thinking of strengthening the group and taking care of our clients ”.
In the second quarter, total revenues totaled US $ 888.7 million, which implied a drop of 62.5% compared to 2019. Passenger revenues decreased 77.4%, the impact of which was partially offset by a 37.5% increase in cargo revenues, both compared to the same period of 2019. Cargo operations continue to stand out for their contribution to the group, reaching revenues of US $ 370.2 million during the quarter, mainly driven by cargo aircraft that reached historical utilization levels after a strong scenario of import and export.
For their part, costs decreased 46.5% compared to the same period in 2019, reaching US $ 1,246 million. The effort made by the group to reduce and vary its fixed costs is noteworthy.
Operating income recorded losses of US $ 357.7 million in the analyzed quarter.
A notable event of the period, and which is related to the projection of the LATAM Group in the long term, was the launch of its sustainability strategy, which is based on four pillars of action: climate change, environmental management, circular economy and value. shared, measures with which the Group will seek to offset 50% of its domestic emissions by 2030, establishing a path to be carbon neutral by 2050.
In May, the group resumed its recycling activities, temporarily suspended due to the pandemic, including the restart of the LATAM Airlines Chile “Recycle Your Trip” program and the “Second Flight” uniform recycling program of Latam Airlines Peru. These will be extended to other subsidiaries of the group during 2021. In addition, the group recently announced the formalization of alliances between its Avión Solidario program and various foundations and organizations in both Chile and Brazil. In the first case, LATAM is working with DKMS, Coaniquem, América Solidaria, TECHO, Minsal and Fundación Fútbol Más. Regarding Brazil, the group has new alliances with the Brazilian Association for the Defense of Women, Children and Youth ( Asbrad), Burn Support Institute (IAQ).