Latam Airlines still sees room to grow in South America, CEO says

Latam Airlines Group SA, the largest carrier in South America, still sees plenty of room for growth in the region even after raising this year’s financial forecasts. “We now have the financial strength to define how we want to take the opportunity of growth in a region that is under-penetrated,” CEO Roberto Alvo said in an interview in New York. “Distances between main cities are measured in hundreds and thousands of kilometers. There is no alternative in many cases to air travel and, therefore, the region is ripe for growth and we have the fleet and the financial situation to take advantage of that growth.” Latam Airlines hosted an investor day at the New York Stock Exchange Tuesday where the company said it hopes to increase capacity, measured by available seat kilometers, by as much as 16% in 2024 compared to last year. That growth is expected to slow to high-single digits in 2025 and mid-to-high single digits in 2026. The company also outlined that current liquidity represents 27% of revenue, and that adjusted Ebitdar is expected to reach $3.4b next year. Other airlines in the region, specifically in Brazil, are struggling. Azul SA is in the midst of creditor talks and is struggling to raise debt, while Gol Linhas Aereas Inteligentes SA is going through Chapter 11 restructuring and preparing to raise exit capital. However, Latam is back with full force and recently returned to the New York Stock Exchange with an offering of American depositary shares. A group of shareholders raised $456m in an initial public offering in July, and they have risen 15% since then. <br/>