LATAM on ‘improving trajectory’ as it works through reorganisation

LATAM Airlines Group posted a Q4 loss but sees its business on “an improving trajectory” as it aims to exit bankruptcy court protection later this year. The Santiago, Chile-based airline says on 9 March that it ended Q1 2021 with a net loss of $2.7b, which was “heavily impacted by a valuation allowance of deferred tax assets” and reorganisation expenses. The reorganisation has been ongoing since mid-2020 when the carrier voluntarily entered Chapter 11 bankruptcy protection after the coronavirus crisis decimated demand. LATAM is “targeting to emerge from Chapter 11 during the second half of 2022”, it says. Total revenue in Q4 reached $2b, 30.5% less than 2019 levels, but 22% more than during the same quarter in 2020. Revenue “continued showing an improving trajectory”, LATAM says. For the full year, LATAM achieved $5.1b in revenue, up 18% from 2020, but still less than half of the $10.4b the airline posted in pre-pandemic 2019. “This past year was marked by continued advancements both from an operational perspective, with a significant ramp up of the group’s operations, and marked progress in LATAM’s reorganisation proceedings,” the company says. LATAM has filed a proposed reorganisation plan and implemented cost-saving initiatives.<br/>