LATAM Group shows signs of recovery, projecting an operation of 36% in June

LATAM Airlines Group said on Wednesday that it had sought to extend until September the deadline to present its restructuring plan as part of the bankruptcy protection process initiated in 2020 according to Reuters.

LATAM Group issued this statement:

LATAM’s passenger operation for June 2021 is estimated to reach 36% (measured in available seats-kilometers – ASK) relative to the same month in 2019, in a pre-pandemic context. The forecast operation is higher than that of last May (30.8%, measured in ASK), as all markets show higher projections than those of the previous month, largely attributed to the progress of the vaccination rollout in the countries where LATAM operates and the resulting increase in demand.

LATAM estimates approximately 691 daily domestic and international flights in the sixth month of the year, connecting 114 destinations in 14 countries. Meanwhile, the Cargo division has scheduled more than 1,000 cargo freighter flights for June, 20% more than in June 2019. All of these projections are subject to the  evolution of the pandemic, as well as travel restrictions in the countries where LATAM operates.

During May 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 25.6% compared to the same period of 2019, based on an operation, measured in ASK (available seat-kilometers), of 30.8% relative to May 2019. This implies that the load factor decreased 14.1 percentage points, reaching 69.6%.

In cargo, the load factor was 69.8%, which corresponds to an increase of 13.4 percentage points relative to May 2019.

LATAM Group Operational Estimate – June 2021

(Measured in ASK)

 

Brazil ●      38% projected operation (versus June 2019)

○      62% domestic and 15% international

●      Total June destinations: 44 domestic (equivalent to 310 daily flights on average) and 11 international

○      Updates: New Sao Paulo / Guarulhos-Cancun route, with 2 weekly frequencies

Chile ●      23% projected operation (versus June 2019)

○      68% domestic and 6% international

●      Total June destinations: 15 domestic (equivalent to 97 daily flights on average) and 11 international

○      Updates: Restart operation Antofagasta-La Serena (2 weekly frequencies) and Santiago-Osorno (3 weekly frequencies)

Colombia ●      59% projected operation (versus June 2019)

○      94% domestic and 23% international

●      Total June destinations: 15 domestic (equivalent to 118 daily flights on average) and 3 international

○      Updates: New Bogotá-Miami route, with 3 weekly frequencies, in addition to Bogotá-Armenia (7 weekly frequencies)

Ecuador ●      39% projected operation (versus June 2019)

○      58% domestic and 5% international

●      Total June destinations: 7 domestic (equivalent to 18 daily flights on average) and 2 international

Peru ●      38% projected operation (versus June 2019)

○      64% domestic and 28% international

●      Total June destinations: 19 domestic (equivalent to 113 daily flights on average) and 14 international

○      Updates: Increase in weekly frequencies to the United States, reaching 30 in total (16 frequencies to Miami, 7 to New York and 7 to Los Angeles)

Cargo ●      68% projected operation (versus June 2019)

○      52% domestic belly and 35% international belly*

○      128% dedicated freighter

*Belly: merchandise transported in the cargo hold (lower deck) of the aircraft.