LATAM lost $691.9 million

During the 2021 third quarter, LATAM lost $691.9 million due to the impact of the COVID-19 pandemic, plus the increase in costs associated with aircraft maintenance, and one-off impacts, said the carrier in a statement. Despite the loss, LATAM believes it is finishing the year on a strong note. The carrier expects to end 2021 operating over 65% of 2019’s capacity. The financial results LATAM Airlines Group had total operating revenues of US$1.3 billion during the third quarter. Revenues were 50.7% below 2019 levels, though they improved by 47.8% from the previous quarter of 2021, said the company in a statement. Passenger revenues were down 60.9%, while cargo revenues helped offset the impact with an increase of 43.6% compared to pre-pandemic leveler; LATAM carried 11.5 million passengers during the quarter, a 39.6% decrease compared to 2019’s third quarter. The carrier has had 25.3 million passengers in the year, still more than 53% down compared to a couple of years ago. Without a doubt, the COVID-19 pandemic is still severely impacting LATAM’s operational stats. Moreover, maintenance expenses increased by 97.3% compared with 2019, reaching US$206.3 million. Maintenance expenses will continue to grow in 2021 and 2022 as operations ramp up. The carrier wrote, “Net loss in the third quarter amounted to US$691.9 million, largely impacted by the aforementioned aircraft maintenance costs and one-off impacts registered in other operating expenses. This result compares with a profit of US$86.3 million in the same period of 2019 and a loss of US$769.6 million during the second quarter of 2021.” LATAM’s current flights Slowly but surely, LATAM has been picking up its commercial operations. The Latin American region has opened most of its borders, allowing LATAM to increase capacity across the map route. The airline stated, “After a challenging second quarter, having operated at an annual low point of 24.9% of 2019 capacity in April, the progressive ease of travel and mobility restrictions, accompanied by the vaccination rollout implemented in the region, have helped us to observe an upward trend in operations along the quarter.” LATAM had, on average, a capacity of 49.7% of 2019 levels. Domestic operations performed better than the international market. This level of operations made LATAM lose $691.9 million In September, domestic capacities reached 80% in the Spanish-speaking countries and 82.7% in Brazil. Currently, LATAM expects to continue the ramp-up of the group’s operations. It will reach over 65% of consolidated capacity versus 2019 by the end of the year. LATAM’s Chapter 11 In the meantime, LATAM continues moving forward with its Chapter 11 bankruptcy process, though at a slower pace than its regional peers Avianca and Aeromexico. The US court recently approved Avianca's Reorganization Plan. Meanwhile, Aeromexico is expected to have a hearing in December. Both carriers could exit Chapter 11 between this year and the first quarter of 2022. The company currently has through November 26, 2021 to file its Reorganization Plan. Then, the solicitation period of the Reorganization Plan ends on January 26, 2022. In the meantime, the company continues its negotiation process on many fronts. Regarding the fleet, LATAM has rejected 42 aircraft leasing contracts since initiating Chapter 11 proceedings. It has also incorporated 15 aircraft and has put 11 Boeing 767s on sale. LATAM expects to receive 72 new aircraft between 2021 and 2028, including two Boeing 787 Dreamliner aircraft and 70 Airbus A320neo family aircraft.

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The financial results

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The financial results

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