LATAM Airlines

LATAM Airlines Group, the largest airline conglomerate in Latin America, is poised for robust growth and improved financial performance in 2024. The airline reported a strong start to the year, with a net profit of $258 million in Q1 2024, more than double the previous year’s figure. This was driven by an 18.4% increase in revenues to $3.32 billion, and a record adjusted EBIT margin of 13.9%.

LATAM has revised its full-year guidance upwards, projecting revenues between $12.8-13.1 billion (up from $12.4-12.8 billion previously), and record adjusted EBITDAR of $2.75-3.05 billion, representing 10-22% growth over 2023. The airline expects to carry 4.96 billion passengers in 2024, a record high, while growing capacity by 14-16% year-on-year.

The group’s improved outlook is underpinned by strong passenger demand, with a load factor of 84.4% in Q1, and increased preference for LATAM, reflected in its Net Promoter Score. LATAM also continues to invest in its product, with cabin upgrades, lounge renovations, and expansion of in-flight Wi-Fi.

LATAM’s partnership with Delta Air Lines is bearing fruit, with increased flights to key US cities like Los Angeles and Miami planned for late 2024. The group is also considering expanding its narrowbody fleet beyond its current Airbus A320neo order book, potentially adding Boeing 737s.

While LATAM remains cautious about the lower-demand Q2 season, its strong financial position, with $3 billion in liquidity and reduced net debt, allows it to pursue growth opportunities. The group has initiated the process to re-list its shares on the New York Stock Exchange, a sign of its post-bankruptcy resurgence.

Overall, LATAM Airlines appears well-positioned to capitalize on the recovery in Latin American air travel, supported by its strong brand, strategic partnerships, and investment in its product and fleet. Barring unexpected shocks, 2024 is shaping up to be a landmark year for the airline group.