LATAM significantly reduces its costs and maintains healthy levels of liquidity despite the recent contraction in demand
Santiago, Chile - May 6, 2021. Within a context of increased travel restrictions and a strong contraction in demand due to COVID-19, LATAM Airlines Group ended the first quarter of the year with US$2.6 billion of available liquidity (US$1.3 billion in cash and cash equivalents and US$1.3 billion in committed DIP financing line), as a result of its efforts to variabilize and reduce its costs. The group reduced total operating expenses by 43.8% during the period.
“One year after the start of the pandemic and with a vaccination process underway, the profound impact of the crisis remains. We believe that the correct decisions have been made to ensure the continuity of the group and we are already witnessing the effects. We ended a very difficult first quarter with healthy liquidity levels and a significant cost reduction. The call to action is to continue working as we have done so far because the pandemic and its impact is not over yet,” said Roberto Alvo, CEO of LATAM Airlines Group.
In the first quarter of the year, total revenues amounted to US$913.2 million, a decrease of 61.2% compared to the same period of 2020, a reduction that was partially offset by a 36.8% increase in cargo revenues. During this period, the group announced the transformation of up to eight Boeing 767-300 passenger aircrafts to freighters in the next three years, which will allow the group to increase its cargo capacity by up to 80%.
In the first quarter, LATAM registered an operational loss of US$355.7 million.
It is worth mentioning that the group has just launched its sustainability strategy, called "A Necessary Destination," which assumes commitments with the region, based on ongoing dialogues and collaborations, that will contribute to the protection of unique and at-risk ecosystems in South America for the next 30 years.
About LATAM Group
LATAM is the leading airline group in Latin America, present in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, as well as international operations within Latin America and to Europe, the United States and the Caribbean.
The Group has a fleet of Boeing 787, Airbus A350, A321, A320neo and A319, the most modern aircraft models of its kind.
LATAM is the only airline group in America and one of the three in the world to enter the Dow Jones World Sustainability Index, where it stands out for its sustainable practices, based on economic, social and environmental criteria.