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LATAM Confirms Demand Recovery for November
LATAM Airlines Group’s operational passenger projection for November 2021 is estimated to reach 62% compared to the same month in 2019, as measured in available seat kilometers.
According to a press release, for this month, solid results from October have been maintained in the countries where the group operates, with significant increases in the estimate of the general supply in Brazil, Colombia and Peru.
LATAM plans to operate approximately 1,091 daily domestic and international flights during November, connecting 125 destinations in 16 countries. The cargo business has 1,100 flights scheduled on cargo planes with a level of utilization 19% higher on average than the same period in 2019.
All these projections are subject to the evolution of the pandemic as well as to travel restrictions in the countries where LATAM operates.
During Oct. 2021, passenger traffic (measured in Rented Passenger Kilometers – RPK) was 55.6% in relation to the same period of 2019, based on an operation measured in ASK of 57, 5% compared to Oct. 2019. This implied that the load factor decreased 2.7%, reaching 79.8%.
In cargo operations, the load factor was 60.7%, which corresponds to an increase of 6.1% in relation to Oct. 2019.
|Country||Operation projected||Domestic Operations||International Operations||Notes|
|Brazil||64%||89% (47 destinations – 541 daily flights)||32% (16 destinations)||São Paulo/Guarulhos – Barcelona route resumption|
|Chile||56%||83% (16 destinations – 152 daily flights)||41% (20 destinations)||Santiago – Córdoba, Santiago Buenos Aires/Aeroparque, Santiago – Rio de Janeiro/Galeão routes resumption|
|Colombia||88%||119% (16 destinations – 145 daily flights)||47% (4 destinations)||Bogotá – Yopal domestic new route|
|Peru||62%||83% (19 destinations – 160 daily flights)||54% (19 destinations)||Lima – Córdoba route resumption|
|Ecuador||34%||109% (7 destinations – 32 daily flights)||13% (2 destinations)|
|Cargo||84%||75% lower deck transportation||52% lower deck transportation||122% freighter operations|
LATAM Increases Revenues and Expects Recovery
Within the framework of the delivery of the results of the third quarter of the year, LATAM Airlines Group reported that it has registered a continuous improvement in its income during the period, reaching $1.3 billion, which represents an increase of 47.8% compared to second quarter of 2021 and 156.1% compared to 2020.
Despite this better performance, the group’s revenues for the third quarter are 50.7% below 2019 because of the effects of the still ongoing pandemic.
For its part, LATAM Cargo’s revenues registered an increase of 43.6% compared to 2019, reaching $361.4 million.
LATAM Airlines Group showed significant progress in its operation in the third quarter, reaching 49.7% of the 2019 levels (measured in available seat kilometers ASK), driven by a strong recovery in its domestic operations, and a 75% inquartcrease in capacity compared to the second quarter of 2021.
The group expects to close the year operating on 65% of consolidated capacity (measured in ASK) versus 2019 levels.
Total costs reached up to $1.8 billion at the end of the period, representing a 25.2% drop compared to the third quarter of 2019.
The unit cost (cost per ASK without considering the fuel variable) decreased 18.3% versus the second quarter of this year, despite higher maintenance costs and a slower recovery of the international operation.
The above result reflects the efficiencies achieved by the group in recent months, which will translate into savings of more than $900 million per year.
Operating income recorded losses of $479.2 million in the third quarter of the year, while the net loss was $691.9 million, impacted by the effects of maintenance costs, restructuring expenses and other non-recurring expenses.
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