LATAM Airlines Group profit during the third quarter of 2024 rose to $301 million as the company managed to hold costs in check and profited from greater demand for air travel.
The Santiago, Chile-based carrier says that adjusted for foreign exchange and other gains, profit came in at $339 million, up 25% from the same three months last year.
Earnings before interest, tax, depreciation, amortization and restructuring (EBITDAR) increased 14% to $828 million.
“The continuation of strong operational results from previous periods and consistent focus on cost containment have been the driving force behind the financial performance the group is highlighting this third quarter,” the company says.
Revenue reached $3.3 billion, up 7.6% from the same period in 2023, while costs rose 6.8% to $2.83 billion. Aviation fuel, wages and benefits, and maintenance expenses all rose during the third quarter.
“This [revenue] growth was primarily driven by a 6.3% increase in passenger revenues compared to the third quarter of last year,” the company says. “On the other hand, cargo revenues increased by 15.7% during the quarter and have shown year-over-year growth now for two consecutive quarters, marking an upward trajectory.”
The carrier increased capacity as measured in available seat kilometres by 15.1%.
For the full year, the airline is raising its earnings expectations “due to the strong results during the year and a positive demand environment”. It now expects full-year revenue to rise to between $12.9-$13.1 billion. It expects an adjusted EBITDAR of between $3 billion and $3.15 billion, up from $2.75 billion to $3.05 billion.
