Category Archives: LATAM Airlines (Brazil)

LATAM implements changes in its Economy cabin and eliminates 75% of single-use plastics on board

LATAM Group has made this announcement:

This initiative is part of the group’s commitment to eliminate all single-use plastics in its operations by 2023.
The change in the materials of all onboard service elements in the Economy cabin eliminates1,200 tons of plastic.

LATAM has announced changes to its Economy cabin service that has allowed it to eliminate more than 1,200 tons of single-use plastics, equivalent to eliminating 36,000 500 ml plastic bottles. The new service seeks to implement a more sustainable cabin and considers important changes in the materiality of all items on board (cups, cutlery, trays), replacing them with more sustainable materials such as bamboo cutlery, reusable trays, kraft paper packaging for cutlery, and certified sustainable paper cups.

These changes have been implemented on all of LATAM group’s regional and long-haul routes, and are part of the group’s sustainability strategy, which aims to eliminate 100% of single-use plastics used in its operations by 2023.

“Caring for the planet is a challenge for everyone, and a necessary destination for LATAM, which is why we reviewed our services and identified nearly 1,800 tons of single-use plastic on board our international flights. Our teams got involved to redefine all details of our service, making a positive change for our customers, and also for our planet,” said Paulo Miranda, LATAM Airlines Group Vice President of Customers.

This new proposal is in addition to the changes made in the Premium Business cabin, which include the incorporation of reusable bags to cover rest items and eco travel kits for passengers, which include a bamboo toothbrush with a sugar cane lid, earplugs with packaging made of kraft paper and socks and eye covers made from recycled plastic.

LATAM Airlines (Brazil) aircraft photo gallery:

LATAM expects to reach 81% of operations in September and aims to end the year above 85%

LATAM group projects passenger operations of 81% for September (measured in available seat kilometers – ASK) compared to the same period in 2019 (in a pre-pandemic scenario), and projects to exceed 85% in terms of consolidated operational recovery for the close of 2022.

LATAM expects to operate approximately 1,290 daily domestic and international flights during September, connecting 142 destinations in 22 countries, and the group’s cargo business has scheduled more than 1,270 flights. These projections are subject to the evolution of the pandemic in the countries where the group operates.

In August 2022, passenger traffic (measured in revenue passenger-kilometers – RPK) was 80.9% compared to the same period in 2019, based on an operation measured in ASK (available seat-kilometers) of 81.8% compared to August 2019. As a result, the load factor decreased 0.9 percentage points, reaching 83.0%.

The load factor of cargo operations was 55.8%, which corresponds to an increase of 1.3 percentage points compared to August 2019.

LATAM Group Operational Estimate – September 2022

(Passenger operations measured in ASK / Cargo operations measured in ATK)

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Brazil	● 89% projected operation (versus September 2019). August 2022 projection reference: 89% ● 103% domestic and 72% international ● Total September destinations: 54 domestic and 20 international.
Chile	● 70% projected operation (versus September 2019). August 2022 projection reference: 69% ● 74% domestic and 68% international ● Total September destinations: 16 domestic and 25 international.
Colombia	● 115% projected operation (versus September 2019). August 2022 projection reference: 109% ● 138% domestic and 88% international ● Total July destinations: 17 domestic and 5 international.
Ecuador	● 55% projected operation (versus September 2019). August 2022 projection reference: 51% ● 132% domestic and 31% international ● Total September destinations: 8 domestic and 3 international.

Perú	● 79% projected operation (versus September 2019). August 2022 projection reference: 78% ● 91% domestic and 74% international ● Total July destinations: 19 domestic and 26 international
Cargo	● 96% projected operation (versus September 2019). August 2022 projection reference: 100% ● 68% domestic belly and 79% international belly* ● 153% dedicated freighter

*Belly: mercancía transportada en la bodega de carga (lower deck) del avión.

Operational Estimate by Segment vs. 2019 – September 2022

(Measured in ASK)

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Domestic Spanish-speaking countries	81%
Domestic Brazil	103%
Internacional	68%
Consolidated Total	81%

Note: While Argentina’s domestic operations are considered in the 2019 operational statistics above, LATAM announced the indefinite cessation of its domestic passenger and cargo operations in Argentina on June 17, 2020.

LATAM Airlines (Chile) aircraft photo gallery:

LATAM projects to reach 81% operation in August with a challenging regional reactivation environment

LATAM Group projects a passenger operation of 81% for August (measured in available seat kilometers – ASK) compared to the same period in 2019 (pre-pandemic scenario). In the domestic markets, while Peru, Ecuador, Brazil, and Colombia exceeded pre-pandemic levels, Chile is the one with the least recovery, reaching only 76%.

This month, the group plans the resumption of the emblematic route between Santiago de Chile and Easter Island/Rapa Nui, and the start of operations between São Paulo/Guarulhos and Presidente Prudente. LATAM group’s cargo operations are expected to reach pre-pandemic levels of capacity (measured in ATKs) during August, with the progressive fleet expansion to continue during the next few months.

LATAM expects to operate approximately 1249 daily domestic and international flights during August, connecting 135 destinations in 22 countries.

The group’s cargo business has scheduled more than 1,280 flights on cargo freighters. These projections are subject to the evolution of the pandemic in the countries where the group operates.

In July 2022, passenger traffic (measured in revenue passenger-kilometers – RPK) was 77.8% in relation to the same period in 2019, based on an operation of 79.7% compared to July 2019 (measured in ASK – available seat kilometers.) As a result, the load factor decreased 2.1 percentage points, reaching 82.4%.

The load factor of cargo operations was 54.9%, which corresponds to an increase of 2.0 percentage points compared to July 2019.

LATAM Group Operational Estimate – August 2022

(Passenger operations measured in ASK / Cargo operations measured in ATK)

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Brazil

● 89% projected operation (versus August 2019). July 2022 projection reference: 88%

● 107% domestic and 69% international
● Total August destinations: 54 domestic (equivalent to 622 daily flights on

average) and 20 international

● Updates:
o Domestic: New São Paulo/Guarulhos-Presidente Prudente route (7

flights/week)

Chile	● 69% projected operation (versus August 2019). July 2022 projection reference: 67% ● 76% domestic and 66% international ● Total August destinations: 15 domestic (equivalent to 115 daily flights on average) and 25 international ● Updates: ● Domestic: Restart Santiago de Chile – Easter Island/Rapa Nui route (2 flights/week)
Colombia	● 109% projected operation (versus August 2019). July 2022 projection reference: 107% ● 132% domestic and 83% international ● Total August destinations: 17 domestic (equivalent to 185 daily flights on average) and 5 international
Ecuador	● 51% projected operation (versus August 2019). July 2022 projection reference: 50% ● 134% domestic and 29% international ● Total August destinations: 8 domestic (equivalent to 43 daily flights on average) and 3 international
Peru	● 78% projected operation (versus August 2019). July 2022 projection reference: 76% ● 90% domestic and 73% international ● Total August destinations: 19 domestic (equivalent to 173 daily flights on average) and 26 international
Cargo	● 100% projected operation (versus August 2019). July 2022 projection reference: 96% ● 74% domestic belly and 81% international belly* ● 157% dedicated freighter

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

Operational Estimate by Segment vs. 2019 – August 2022

(Measured in ASK)

LATAM Airlines (Chile) aircraft photo gallery:

LATAM commits to eliminating all single-use plastics by 2023

LATAM AIrlines Group made this announcement:

● Among the initiatives to be implemented is a change in the materials of all onboard service elements in the Economy cabin, which will eliminate more than 1,000 tons of single-use plastics.

● Travel kits with more sustainable elements have also been incorporated in Premium Business cabins, and bags for blankets and rest items are gradually being replaced.

LATAM has announced that it will eliminate 100% of single-use plastics used in its operations by 2023. This commitment will be achieved through initiatives such as changing onboard materials, incorporating more sustainable elements, and with the group’s recycling and reuse programs.

To date, gradual changes have been implemented inside the aircraft. From June 1, all international flights have reusable bags to cover the rest items in the Premium Business cabin. New travel kits were also recently launched for passengers in Premium Business, which have more sustainable elements such as bamboo toothbrushes and kraft paper wrappers.

In the Economy cabin, important changes will be announced in the coming weeks in the materials used for all elements of service (glasses, cutlery, tableware), which will be replaced with reusable and/or recyclable materials. In the short term, this initiative will eliminate more than 1,000 tons of single-use plastics, equivalent to 36,000 500ml plastic bottles.

LATAM Cargo is implementing five pilot projects, expected to reduce the use of plastic in cargo operations by more than 60%. One of the most important projects is an initiative that aims to replace the plastic used for wrapping loads with reusable blankets or waterproof covers.

In addition, LATAM is focusing on recycling and reusing. On domestic flights in Chile, Peru, Colombia, and Ecuador, LATAM is operating the “Recycle Your Trip” program, through which cabin crews separate plastic and aluminum onboard. In Colombia, this separation takes place on the ground. The group, together with women entrepreneurs and partner organizations, continues to operate its uniform reuse program in Peru, Chile, Colombia, Ecuador, and Brazil, giving a second life to employee uniforms.

These initiatives are part of LATAM’s sustainability strategy, goals of which include achieving zero waste to landfill by 2027, offsetting 50% of domestic emissions by 2030, and reaching carbon neutrality by 2050.

LATAM projects operation of 74% for June, and resumes domestic routes in Peru and Brazil

LATAM group projects a passenger operation of up to 74% for June (measured in available seat kilometers – ASK) compared to the same month in 2019 (pre-pandemic scenario). The group will also begin operations between Puerto Maldonado and Cusco, in Peru, and will resume three routes from Belém (Brazil) to Macapá, Fortaleza, and Manaus.

LATAM plans to operate approximately 1,123 daily domestic and international flights during June, connecting 133 destinations in 21 countries.

The group’s cargo business has scheduled more than 1,220 flights on cargo freighters. These projections are subject to the evolution of the pandemic in the countries where the group operates.

In May 2022, passenger traffic (measured in revenue passenger kilometers – RPK) was 69.6% in relation to the same period in 2019, based on an operation of 73.1% compared to May 2019 (measured in ASK). As a result, the load factor decreased 4.0 percentage points, reaching 79.6%.

The load factor of cargo operations was 58.0%, which corresponds to an increase of 1.6 percentage points in relation to May 2019.

LATAM Group Operational Estimate – June 2022

(Passenger operations measured in ASK / Cargo operations measured in ATK)

Brazil

80% projected operation (versus June 2019). May 2022 projection reference: 78% 102% domestic and 60% international Total June destinations: 50 domestic (equivalent to 540 daily flights on average) and 19 international Updates: Domestic: Resumption of routes between Belém-Macapá (2 flights/week), Belém-Fortaleza (7 flights/week) y Belém-Manaus (3 flights/week).

Chile

59% projected operation (versus June 2019). May 2022 projection reference: 62% 74% domestic and 46% international Total June destinations: 15 domestic (equivalent to 111 daily flights on average) and 22 international

Colombia

104% projected operation (versus June 2019). May 2022 projection reference: 114% 148% domestic and 58% international Total June destinations: 17 domestic (equivalent to 191 daily flights on average) and 5 international

Ecuador

44% projected operation (versus June 2019). May 2022 projection reference: 41% 122% domestic and 21% international Total June destinations: 8 domestic (equivalent to 39 daily flights on average) and 3 international

Peru

70% projected operation (versus June 2019). May 2022 projection reference: 68% 92% domestic and 62% international Total June destinations: 19 domestic (equivalent to 161 daily flights on average) and 22 international Updates: Domestic: New route – Puerto Maldonado-Cusco (4 flights/week).

Carga

94% projected operation (versus June 2019). May 2021 projection reference: 94% 77% domestic belly and 65% international belly* 163% dedicated freighter

Domestic Spanish-speaking countries

83%

Domestic Brazil

102%

International

55%

Consolidated Total

74%

LATAM Airlines (Chile) aircraft photo gallery:

Agreement between LATAM and UNHCR to help refugees around the world

In order to support humanitarian crises worldwide, LATAM group will make free passenger and cargo transport available to the United Nations High Commissioner for Refugees (UNHCR). This aid is intended to support people who have had to leave their homes in search of safety.

This arrangement allows for the transfer of cargo at no cost, and contribution towards in tickets to destinations within the LATAM network. The initiative is part of the LATAM group’s “Solidarity Plane” program which seeks to generate value in society by providing free transportation to cover different needs in South America.

According to the UNHCR Global Trends report, 1% of humanity was forced to flee their homes in 2020. A major humanitarian crisis is currently unfolding in Ukraine and neighboring countries, which has displaced more than 10 million people. Latin America and the Caribbean is no exception, with more than 18 million displaced people in need of aid. In addition, “we cannot forget places like Afghanistan, Syria, Ethiopia, Venezuela, Myanmar and many others that continue to need the support of UNHCR and other humanitarian organizations,” said Filippo Grandi, United Nations High Commissioner for Refugees.

LATAM’s “Solidarity Plane” program is part of the group’s sustainability strategy, and seeks to generate value in society through free passenger and cargo transportation. During the pandemic, “Solidarity Plane” has played an active role in the transportation of vaccines within the countries where it operates, mobilizing more than 232 million doses, in addition to transporting more than 3,400 health professionals to attend to urgent needs related to the COVID-19 pandemic.

Recently, the program announced alliances with solidarity and civil society organizations in Brazil, Chile, Colombia, Ecuador and Peru, making available to them the expertise, infrastructure and connectivity through tickets and cargo transportation at no cost to organizations.

LATAM renews its travel kits with a focus on sustainability and local design

LATAM recently presented its Travel Eco Kits, a new amenity kit concept for passengers traveling in Premium Business cabins. These kits are based on local design and gradually incorporate sustainable elements. The collectable bags are designed to be reusable and versatile with a very long lifespan, and new and exciting designs.

Following LATAM’s commitment to eliminate single-use plastics, the bag is delivered unwrapped, and its amenities are made more environmentally friendly through the incorporation of reusable materials such as a bamboo toothbrush with a sugar cane cap. The earplugs are wrapped in kraft paper to reduce the use of plastic materials as much as possible, and the socks and eye covers are made from recycled plastic.

The bag includes cosmetic products (hand cream, lip balm and a refreshing towel) produced by Feito Brasil, a brand certified as B Corp™ (certification that recognizes performance in financial, social and environmental sustainability). Feito Brasil prides itself on making products with a focus on sustainability. These products are cruelty-free and vegan, use natural ingredients and raw materials, and are locally produced by Brazilian artisans.

The design of the new Travel Eco-Kits is to display the work of South American artists chosen by LATAM for their emerging trajectory and/or for being transformers of their communities. The first two artists to join this initiative are Tomás Olivos (Chile) and Hamilton Aguiar (Brazil). The following designs will be by artists from Ecuador, Peru, Colombia and Argentina.

Passengers on the Santiago de Chile – Madrid – Santiago de Chile and São Paulo/Guarulhos – Miami – São Paulo/Guarulhos routes will be the first to receive the new Travel Eco Kits during on-board service, which will be progressively implemented on remaining routes during 2022.

With this initiative, LATAM intends to take another step forward in its sustainability strategy, focused on generating environmental and social value in the community, and promoting social, environmental and economic development in the countries where it operates.

About the artists:

HAMILTON AGUIAR

● Visual artist born in Belo Horizonte (Brazil) in 1965.

● His work is clearly inspired by natural beauty, with a transcendent quality that cannot be imitated.

● He has participated in individual and collective exhibitions throughout his thirty-year career, with notable exhibitions in galleries in Germany, Korea, Sweden, Canada, and Singapore, among others.

● His work is displayed by important galleries and exhibition spaces of contemporary art in Latin America and the United States. It has been exhibited at international fairs and is part of important collections of contemporary art, both public and private.

TOMÁS OLIVOS

● Chilean illustrator born in Santiago in 1987. He currently resides in Barcelona.

● Author of the books “Abecedario Ilustrado” (2018) and “El gran Espíritu” (2019), in addition to participating in publishing projects in Spain, Argentina, Chile, among others.

● He has a special obsession with nature and loves to draw characters with long arms and very small faces. His source of inspiration is strongly related to his own anatomy: “I have short legs and arms, it may be a reflection of the complex I have with my body.”

Virgin Atlantic announces partnership with LATAM Airlines (Brazil)

Virgin Atlantic has announced a new codeshare agreement with LATAM Airlines offering customers the opportunity to fly seamlessly to the South American country of Brazil.

Customers booking through Virgin Atlantic are now able to travel from Heathrow direct to São Paulo as well as connecting onwards onto 12 domestic airports in Brazil including Rio de Janeiro, Salvador and Florianopolis. Customers traveling from São Paulo to London Heathrow will also have the option to smoothly connect onto Virgin Atlantic’s rest of world destinations through Terminal 3 including Tel Aviv, Delhi and Hong Kong.

Codeshare destinations:

São Paulo, Brazil

Direct from London Heathrow on LATAM Airlines

Further domestic destinations in Brazil

Rio de Janeiro (GIG), Porto Alegre (POA), Belo Horizonte (CNF), Brasilia (BSB), Curitiba (CWB), Goiania (GYN), Recife (REC), Salvador (SSA), Florianopolis (FLN), Fortaleza (FOR), Vitoria (VIX) and Londrina (LDB)

Connect via LATAM Airlines’ direct service to São Paolo from London Heathrow

LATAM Airlines Group projects operation of 69% for December

LATAM Airlines Group’s operational passenger projection for December 2021 is estimated to reach 69% (measured in available seat kilometers – ASK) of 2019 levels, and a pre-pandemic context.

The increases in the operational projection for Colombia (+14 pp) and Brazil (+10 pp) stand out, compared to the November projection for this year. In Brazil, the increase is accompanied by new domestic routes to Jericoacoara and Vitória da Conquista, in addition to the reactivation of flights to Milan and London from São Paulo / Guarulhos. The seasonal routes Santiago-Florianópolis, São Paulo/Guarulhos-Punta del Este and Santiago-Punta del Este have also returned. With these announcements, the group maintains its expectation of closing the year with operations of over 65% of 2019 capacity levels.

LATAM plans to operate approximately 1,212 daily domestic and international flights during December, connecting 129 destinations in 18 countries. The cargo business has 1,150 flights scheduled on cargo freighters with an average utilization level that is 20% higher than the same period in 2019. These projections are subject to the evolution of the pandemic and the travel restrictions in the countries where LATAM Airlines Group operates.

In November 2021, passenger traffic (measured in revenue passenger-kilometers – RPK) was 62.3% in relation to the same period in 2019, based on an operation measured in ASK (available seat-kilometers) of 62.8% compared to November 2019. The load factor decreased 0.6 percentage points, reaching 82.0%. With regard to cargo operations, the load factor was 59.4%, which corresponds to an increase of 2.1 percentage points compared to November 2019.

LATAM Airlines Group files plan of reorganization

LATAM Airlines Group S.A. and its affiliates in Brazil, Chile, Colombia, Ecuador, Peru, and the United States today announced the filing of a Plan of Reorganization, which reflects the path forward for the group to exit Chapter 11 in compliance with both U.S. and Chilean law.

The Plan is accompanied by a Restructuring Support Agreement (the “RSA”) with the Parent Ad Hoc Group, which is the largest unsecured creditor group in these Chapter 11 cases, and certain of LATAM’s shareholders. The RSA documents the agreement between LATAM, the aforementioned holders of more than 70% of parent unsecured claims and holders of approximately 48% of 2024 and 2026 U.S. Notes, and certain shareholders holding more than 50% of common equity, subject to the execution of definitive documentation by the parties and the obtaining of corporate approvals by those shareholders. As they have throughout the process, all of the companies in the group are continuing to operate as travel conditions and demand permit.

Plan Overview

The Plan proposes the infusion of $8.19 billion into the group through a mix of new equity, convertible notes, and debt, which will enable the group to exit Chapter 11 with appropriate capitalization to effectuate its business plan. Upon emergence, LATAM is expected to have total debt of approximately $7.26 billion¹ and liquidity of approximately $2.67 billion. The group has determined that this is a conservative debt load and appropriate liquidity in a period of continued uncertainty for global aviation and will better position the group going forward.

Specifically, the Plan outlines that:

Upon confirmation of the Plan, the group intends to launch an $800 million common equity rights offering, open to all shareholders of LATAM in accordance with their preemptive rights under applicable Chilean law, and fully backstopped by the parties participating in the RSA, subject to the execution of definitive documentation and, with respect to the backstopping shareholders, receipt of corporate approvals;
Three distinct classes of convertible notes will be issued by LATAM, all of which will be preemptively offered to shareholders of LATAM. To the extent not subscribed by LATAM’s shareholders during the respective preemptive rights period:
- Convertible Notes Class A will be provided to certain general unsecured creditors of LATAM parent in settlement (dación en pago) of their allowed claims under the Plan;
- Convertible Notes Class B will be subscribed and purchased by the above referenced shareholders; and
- Convertible Notes Class C will be provided to certain general unsecured creditors in exchange for a combination of new money to LATAM and the settlement of their claims, subject to certain limitations and holdbacks by backstopping parties.
The convertible notes belonging to the Convertible Classes B and C will therefore be provided, totally or partially, in consideration of a new money contribution for the aggregate amount of approximately $4.64 billion fully backstopped by the parties to the RSA, subject to receipt by the backstopping shareholders of corporate approvals;
LATAM will raise a $500 million new revolving credit facility and approximately $2.25 billion in total new money debt financing, consisting of either a new term loan or new bonds; and
The group also used and intends to use the Chapter 11 process to refinance or amend the group’s pre-petition leases, revolving credit facility, and spare engine facility.