Photo: LATAM Airlines Group.
LATAM Airlines Group unveiled its impressive financial figures for the fourth quarter and the full year of 2023, showcasing a solid performance with net profits of $582 million. The good results were expected, though.
The year closed with revenues of $11.789 billion, a significant increase of 23.9% compared to 2022. This growth is supported by a 24.3% increase in passenger revenue during the last quarter, showing vigorous recovery and an effective business strategy. Furthermore, LATAM stood out for achieving an adjusted operating margin of 11.3% and liquidity of US$2.815 billion, demonstrating its financial strength and stability.
In 2023, LATAM recovered to pre-pandemic levels, transporting close to 74 million passengers, and expanded its fleet. The group took delivery of 30 aircraft, of which five were wide-body and 25 narrow-body. In addition, the group launched 21 routes, of which 17 were international and 4 domestic, including 4 routes operated by the group in the context of the Joint Venture with Delta Air Lines.
LATAM has made significant progress on the sustainability front, highlighting the reduction of over 250 thousand tons of CO2 and eliminating 96% of single-use plastics in its operations, underscoring its commitment to the environment.
Customer satisfaction remains a priority for LATAM, as evidenced by the increase in its Net Promoter Score (NPS) and the expansion of its LATAM Pass loyalty program, which now has more than 45 million members.
LATAM’s CEO, Roberto Alvo, attributes these achievements to a culture focused on the customer, innovation, and sustainability. “This performance is a reflection of a culture where we put the customer first, work to deliver better service, maintain a competitive cost structure, incorporate innovation and technology, work towards a sustainable business, and contribute to the societies where LATAM group companies operate. This focus allows us to deliver a better product that has translated into very good financial results“, Alvo said.
Meanwhile, LATAM’s CFO, Ramiro Alfonsín, highlighted the group’s financial and operational strength, projecting a bright future for LATAM in 2024 and beyond. “These figures show the good operational performance and its current financial strength. The LATAM group carried close to 74 million passengers, reaching levels similar to 2019, before the pandemic. As a result, it closed 2023 with US$2,533 million of adjusted EBITDAR, exceeding the projections in the 2023 guidance and the updated business plan published in August 2022.”
