LATAM Airlines Group reported net income of US$146 million during the second quarter of 2024. The carrier group increased passenger operations by 16.2%, increasing operational revenues to more than US$3 billion, an increase of 13.2% year over year. Adjusted operating margin was 9%, with cash generation of US$177 million during the period. The carrier has adjusted net leverage of 1.9x and has a liquidity position of approximately US$ 3 billion.
Management was upbeat about the company’s prospects for the remainder of the year, citing strong bookings for the next few months, and reiterated their full year guidance. The competitive environment looks positive for both domestic and international operations, with the possible exception of the domestic Columbian market with JetSmart pricing irrationally. The international market has been responding well, including the recent joint venture with Delta, and load factors are up at 84.3%, stronger than the overall average of 82.2%, which is up 1.8% from 2023 levels.
