2024-05-02 22:46:02
The Latam Airlines group reported a positive development of the business in the first quarter of the year, more than doubling its profit. Specifically, the company reported a rising by 112% in Marchwhich ends the first three months of the year with a profit of USD 258 million, compared to USD 121 million in 2023.
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The CFO of Latam Airlines Group, Ramiro Alfonsín said that “the systematic work of the Latam Group has translated into solid and consistent financial and operational results in the first quarter. driven by the high seasonwith traffic already exceeding pre-pandemic indicators.”
In this way, Latam’s passenger capacity has experienced a positive increase, with total ASKs reaching 1.2% above 2019 levels, “which “It represents a turning point since the beginning of the pandemic.”said the group.
In this line, The airline’s revenue in the same period increased by 18% from USD 2.805 million to USD 3.321 million. “This increase is largely due to 21.0% in passenger revenue offset by the 2.1% decline in cargo revenue,” the company explained.
In detail, they showed that Passenger revenue reached 2,897 million dollars. This increase was due to an increase in demand measured in RPK, and a 4.1% increase in the cabin factor, which reached 84.4%.
“At an operational level, in the first three months of the year, the LATAM group carried 20.2 million passengerswhich represents an increase of 19.4% compared to the same period in 2023. The above is explained by the increase of 32.5% of passengers transported in the international segment, of 26.0% in the domestic markets of the subsidiaries of Chile, Colombia, Ecuador and Peru,” they reported in relation to the Chilean market.
Adding to this, Passenger traffic in Brazil increased by 9.1% on the domestic market. When asked what influence the financial situation of the Gol airline has on these figures, Alfonsín stated that we still need to see how this scenario develops to be able to confirm what its effect is.
While cargo revenues amounted to USD 369 million, with a decrease explained by a 12.8% reduction in yield, despite a 12.2% increase in traffic measured in RTK.
Regarding the economic environment, Latam pointed out that “we have observed inflation which, although rising rapidly, has been controlled and has come down significantly. These trends point towards a favorable development in the offerincluding the mild effects of energy prices and the remarkable recovery in labor supply supported by strong immigration flows in many advanced economies.”
“It has been the monetary policy decisions, as well as an improvement in their working framework, especially in emerging markets, that has allowed inflation expectations to be anchored,” they added.
With this scenario, and the figures for the Latam period, Ramiro Alfonsín projected a further growth by 2024with greater profitability, and on the way to reducing the company.
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