Latam Airlines Group announced its financial results for the fourth quarter of 2022, closing a year marked by the completion of the restructuring process under the United States Bankruptcy Code Chapter 11, with an operational recovery that was close to before the pandemic.

The airline, to which Latam Ecuador belongs, accepted this chapter in May 2020 due to the complex economic situation caused by the COVID-19 pandemic.

Compared to the period before the pandemic, the group reported that it was able to reduce its gross debt by 37.5%, moving from $10.4 billion before Chapter 11 to $6.5 billion at the end of last year, increasing, in turn, its liquidity in 78% to reach 2.3 billion dollars compared to the period before the reorganization process.

Latam is receiving more than $5,000 million in financing proposals to exit the bankruptcy chapter

During the fourth quarter of last year, the group’s total revenue reached 2,744 million dollars, which represents 37.5% more than in the same period of 2021.

For its part, Ebitdar (earnings before interest, taxes, depreciation, amortization and restructuring or leasing costs) reached $466.8 million in the quarter, and Latam recorded a net profit attributable to owners of the parent company of $2.538 million as a result restructuring procedure.

“The 2022 results show a stronger and more competitive group than before the pandemic. During the year, the Latam Group achieved important progress in various areas. The network has been expanded through the alliance with Delta and new routes have been launched, the cargo business has been strengthened and customer service has been improved,” said Roberto Alvo, CEO of Latam Airlines Group.

He added that progress has also been made in renewing the fleet and the group has taken a leading position in sustainability, which allows us to look to the future with optimism.

For his part, the financial director of the company, Ramiro Alfonsín, highlighted important financial developments.

“On the one hand, gross debt was significantly reduced by 37.5% compared to the pre-pandemic period, and liquidity increased, reaching $2.3 billion at the end of last year. The group also demonstrated a strong operational recovery in the fourth quarter where consolidated operations were 83.2% of 2019 levels (measured in ASKs), representing the highest level of quarterly operations since the start of the pandemic. ”, assured Alfonsín, who confirmed that Latam currently has a more competitive cost structure, a solid balance sheet and a unique level of liquidity in the region to face business challenges.

Recovery and connectivity

Latam Group carried approximately 62 million passengers last year, an increase of 22 million compared to 2021, ending the year with 144 destinations in 22 countries, in line with the number of destinations flown at the end of 2019.

By 2023, the group expects annual growth of its passenger and cargo operations by more than 20% compared to 2022. In 2023, Latam will fly on 38 new routes that it did not operate on in 2019, among which two are part of the JV with Delta.

Latam will begin installing sustainable fuel; by 2030 it is expected to reach 5% of its use, with more production in South America

In July 2023, Latam Airlines Brazil will fly Los Angeles-Sao Paulo, and Latam Airlines Colombia Orlando-Bogotá.

As for the latter route, the Colombian branch plans to carry 120,000 passengers a year, offering better connecting alternatives from the interior of Colombia and Ecuador to the East Coast of the United States through the Delta hub in Orlando and the Latam connecting hub in Bogotá.

In turn, the group continued to show its growth in the region, with subsidiaries in Brazil, Chile and Peru increasing their market share in their domestic segments. In the case of the Brazilian branch, the market share went from 34% in 2019 to 37% at the end of the year, while the branch in Peru went from 62% to 65%, and the branch in Chile, from 58% to 60%.