By 2024, the group projects a passenger operation measured in seats per available kilometer similar to that of 2019.
The group Latam announced this Tuesday an update of the business plan presented a year ago that includes its five-year financial projections adjusted to the new macroeconomic context and a Estimated cost savings of more than $1 billion annually.
According to a statement released by the airline, Latam “has been actively working to improve its cost structure and take advantage of the restructuring opportunity within the framework of its Chapter 11″in United States.
“In the new version of the plan, the group updates its estimate of cost savings from 900 million dollars to more than 1,000 million dollars annually through initiatives already implemented,” added the note.
The airline revealed that launched “structural transformations: fleet renegotiation, improve the position of relative costs, strengthen the network and reduce the total debt by approximately 36% compared to the pre-pandemic debt.
“On demand, the group expects a recovery in the domestic markets of the subsidiaries to the levels of 2019 by the end of 2022. However, in the case of Colombia, said recovery was reached in the first quarter of this year and it is expected that Brazil and Ecuador achieve it within the third quarter”, he detailed.
Regarding international air operations, the company warned that “the recovery will be slower, reaching the levels of 2019 in mid-2023.” It should be noted that international traffic represented approximately 45% of revenues in 2019.
“By 2024, the group projects a passenger operation measured in available seat kilometers (ASK) similar to that of 2019. It is expected that by 2024 the group will exceed 2019 levels, reaching 11.5 billion dollars,” he said.
“This updated business plan reflects how the Latam group is better prepared to face future challenges, with a more competitive and flexible cost structure, with a more complete offer for customers and moving towards a more sustainable aviation,” he argued, for his part, Roberto Alvo, executive director of the Latam group.
On June 18, the Bankruptcy Court for the Southern District of New York confirmed the group’s Reorganization and Financing Plan to exit the Chapter 11 process, which is expected to occur in the last quarter of this year.
