LATAM issued this statement:
As part of the delivery of the results for the second quarter of the year, LATAM Group reported that it foresees better operational prospects for the next six months, despite the profound impact of the pandemic in Latin America since the start of the year. As a result, the group plans to reach a capacity greater than 50% (measured in ASK and compared to 2019 levels) by the end of the third quarter of 2021, which would represent LATAM Group’s highest level of operation since the pandemic began.
In turn, the group reported that it ended the quarter with US $2.3 billion of available liquidity, US $1.5 billion in cash and US $800 million in undrawn, committed DIP financing.
Roberto Alvo, CEO of LATAM Airlines Group, said that “the new waves of the pandemic in the region generated a complex semester, which did not allow us to continue recovering our operation as we expected. However, progress in our restructuring plan was positive. In addition, we maintained our global leadership in punctuality, accelerated our cost reduction, launched our sustainability and inclusion plans, and ensured that our passengers flew comfortably and safely. We look forward to a more active second semester, always thinking of strengthening the group and taking care of our clients.”
In the second quarter, total revenues amounted to US $888.7 million, a 62.5% decrease compared to the same period in 2019. Passenger revenues fell 77.4%, though partially offset by an increase of 37.5% in cargo revenues, both compared to the same period of 2019. Cargo operations continue to stand out for their contribution to the group, reaching revenues of US $370.2 million during the quarter, mainly driven by the cargo freighters, which reached historic utilization levels after a strong import and export scenario.
For their part, costs decreased 46.5% in relation to the same period of 2019, reaching US $1.2 billion, reflecting the notable effort made by the group to reduce and vary its fixed costs.
Operating income recorded losses of US $357.7 million in the analyzed quarter.
In May, the group resumed its recycling activities, which were temporarily suspended due to the pandemic, including the restart of the LATAM Airlines Chile “Recycle Your Trip” program and the “Second Flight” uniform recycling program of LATAM Airlines Peru. These will be extended to other subsidiaries of the group during 2021. Additionally, the group recently announced the formalization of alliances between its Solidarity Plane program and various foundations and organizations in both Chile and Brazil. In the first case, LATAM is working with DKMS, Coaniquem, América Solidaria, TECHO, Minsal and Fundación Fútbol Más. In Brazil, the group has new alliances with the Brazilian Association for the Defense of Women, Children and Youth (Asbrad), Burning Support Institute (IAQ), National Civil Defense and the Brazilian Institute for the Environment and Renewable Natural Resources (Ibama).