LATAM Airlines boosts yearly earnings outlook after solid Q1 results

Chilean carrier LATAM Airlines hiked its earnings forecasts for this year on Thursday, backed by a strong first-quarter performance and increased demand. LATAM sees its revenues ranging from $12.8b to $13.1b for the year, up from a previous estimate of $12.4b to $12.8b. Meanwhile, its adjusted EBITDAR - earnings before interest, tax, depreciation, amortization and restructuring or rent costs - for the year were estimated at a record $2.75b to $3.0b, up 10% to 22% from 2023. The previous estimate in December had been for between $2.6b and $2.9b. In a presentation to journalists, LATAM executives cited boosted operations, cost-containment measures and an improved capital structure as the reasoning behind the fresh EBITDAR outlook. In the first quarter, LATAM brought in $796m in EBITDAR. Net profit more than doubled in the quarter to $258m, from revenues up 18% to $3.32b. Passenger traffic, as measured by available seat kilometers (ASK), grew 17.5% in the quarter, topping the pre-pandemic capacity logged in 2019. LATAM said the increase came as it moved a record number of passengers in the quarter and upped its occupation levels on flights. Meanwhile, LATAM's passenger costs were steady in the quarter at 4.3 cents per ASK, the carrier said, while generating $137m in cash.<br/>