Santiago, 9 August 2021. As part of the delivery of the results for the second quarter of the year, LATAM Group reported that it foresees better operational prospects for the next six months, despite the profound impact of the pandemic this year. As a result, the group plans to reach a capacity of more than 50% (measured in ASKs and compared to 2019 levels) by the end of the third quarter of 2021, which will be the highest level of operation for the group 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 undrawn, committed DIP financing.

Roberto Alvo, CEO of LATAM Airlines Group, said that “the new waves of the pandemic in the region generated a complex half of the year, which did not allow us to continue recovering our operation as we expected. However, progress in our restructuring plan was positive. In addition, we maintained our global leadership for 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 half of the year, always aiming to strengthen the group and take care of our clients.”

In the second quarter, total revenues amounted to US$888.7 million, a 62.5% decrease compared to the same period in 2019. Passenger revenues fell 77.4%, though partially offset by an increase of 37.5% in cargo revenue, both compared to the same period in 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 the cargo freighters, which reached historic utilisation levels owing to strong imports and exports.

For their part, costs decreased 46.5% in relation to the same period of 2019, reaching US$1.2 billion, reflecting the notable effort made by the group to reduce and vary its fixed costs. 

Operating income recorded losses of US$357.7 million in the analysed quarter.

Sustainability

A notable event of this period which relates to LATAM's long term projections has been the launch of its sustainability strategy, which is based on four pillars of action: climate change, environmental management, circular economy and shared value - 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, which were 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 by LATAM Airlines Peru. These will be extended to other subsidiaries of the group throughout 2021. Additionally, the group recently announced the formalisation of alliances between its Solidarity Plane program and various foundations and organisations in both Chile and Brazil. In the first case, LATAM is working with DKMS, Coaniquem, América Solidaria, TECHO, Minsal and Fundación Fútbol Más. In Brazil, the group has new alliances with the Brazilian Association for the Defense of Women, Children and Youth (Asbrad), Burning Support Institute (IAQ), National Civil Defense and the Brazilian Institute for the Environment and Renewable Natural Resources (Ibama).

###

Media Contact

Kate Jenkins, Director, Be Your Brand - 0490 401 492; kate@beyourbrand.com.au  

ABOUT LATAM AIRLINES GROUP

LATAM is the principal group of airlines in Latin America currently operating in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, in addition to international operations inside Latin America and between it and Europe, the United States, and the Caribbean.

The group has a fleet of Boeing 767, 777, 787, Airbus A321, A320, A320neo and A319 aircraft.

LATAM Cargo Chile, LATAM Cargo Colombia, and LATAM Cargo Brazil are the LATAM Airlines freight subsidiaries. In addition to having access to the passenger cargo holds of LATAM Airlines Group, they have a fleet of 11 freighters, which will gradually increase to a total of up to 21 freighters by 2023.

They operate on the LATAM Group network as well as international routes that are solely used for shipping. They offer modern Infrastructure, a wide variety of services and protection options to meet all customer needs.

www.latam.com