Chile’s LATAM Airlines Group posted a $145 million profit for the second quarter, as it strengthened its network and diversified revenue streams.
Revenue for the second quarter came in at $2.68 billion, up 20.2% from the same quarter last year. Passenger revenue rose 32.9% while cargo fell 23.2%, the company said on 3 August.
For the first half of 2023, revenue was up 31% over last year, reaching $5.48 billion. That growth was due to a 46% increase in passenger revenues, offsetting an 18% decline in cargo.
“LATAM has been working systematically and with a long-term focus,” the Santiago-based carrier’s chief executive Roberto Alvo says. “Our financial results are the result of the combination of an effective business strategy, an attractive value proposition for customers, cost discipline, a robust network in the region, globally-leading punctuality worldwide and a solid balance sheet.”
Passenger operations increased 28.4% during the period, compared to the same quarter of 2022.
For the first half of 2021, passenger and cargo revenues accounted for 85.2% and 13.4% of total operating revenues, respectively, LATAM says.
The carrier ended the quarter with 311 aircraft in its fleet – 239 Airbus narrowbody aircraft, 54 Boeing widebody aircraft and 18 Boeing cargo freighters – and is targeting 332 at the end of this year. That figure will rise slightly to 334 at the end of 2024.
LATAM announced numerous new routes during the quarter – both in its South American networks and as part of a joint venture with Delta Air Lines. So far, six new routes have been introduced as a result of the JV.
In addition, LATAM Airlines Brazil announced a new interline agreement with South African carrier Airlink with new routes available from 2 September – the same date LATAM Airlines Brazil will resume its service to Johannesburg from Sao Paulo. That will give customers access to “more than 40 destinations across Africa”, the carrier says.
LATAM will hold an analyst call on 3 August to give more details about its second-quarter earnings results.
