LATAM AIRLINES GROUP S.A. Corporate Update
March 2024
Disclaimer
Neither the United States Securities and Exchange Commission ("SEC") nor the Chilean Comisión para el Mercado Financiero (the "CMF") nor any securities commission of any other U.S. or non- U.S. jurisdiction has reviewed, approved or disapproved of this Presentation, or determined that this Presentation is truthful or complete. No representations or warranties, express or implied, are given in, or in respect of, this Presentation. To the fullest extent permitted by law in no circumstances will LATAM or any of its respective subsidiaries, shareholders, affiliates, representatives, directors, officers, employees, advisers or agents be responsible or liable for a direct, indirect or consequential loss or loss of profit arising from the use of this Presentation, its contents, its omissions, reliance on the information contained within it, or on opinions communicated in relation thereto or otherwise arising in connection therewith. Industry and market data used in this Presentation have been obtained from public filings from industry competitors, third-party industry publications and sources as well as from research reports prepared for other purposes. LATAM has not independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness. This data is subject to change. In addition, this Presentation does not purport to be all-inclusive or to contain all of the information that may be required to make a full analysis of LATAM. Viewers of this Presentation should read the same in full together with the Company's SEC filings indicated herein and each make their own evaluation of LATAM and of the relevance and adequacy of the information taken as a whole and should make such other investigations as they deem necessary.
This presentation may include forward-looking comments regarding the Company's business outlook and anticipated financial and operating results. These expectations are highly dependent on the economy, the airline industry, commodity prices, international markets and external events. Therefore, they are subject to change and we undertake no obligation to publicly update or revise any forward looking statements to reflect events or circumstances that may arise after the date of this presentation. More information on the risk factors that could affect our results are contained on our Form 20-F for the year ended December 31, 2022.
Use of Non-GAAP Financial Metrics and Other Key Financial Metrics
This Presentation includes certain non-IFRS financial measures such as EBIT (which consists of earnings for the period before income taxes and financial costs and financial income), EBITDA (which consists of earnings for the period before income taxes and financial costs and financial income, plus depreciation and amortization expense) and EBITDAR (which consists of earnings for the period before income taxes and financial costs and financial income, plus depreciation and amortization expenses and rentals expenses). In addition EBIT margin which is calculated by dividing EBIT by total operating revenue) These non-IFRS measures are an addition to, and not substitute for or superior to, measures of financial performance prepared in accordance with an IFRS alternative to net income or any other measures derived in accordance with IFRS. LATAM believes that these non-IFRS measures of financial results provide useful supplemental information to investors about LATAM. LATAM's non-IFRS measures may not be directly comparable to similarly titled measures of other companies.
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LATAM group: Latin America's leading airline group and global player, with a unique network
Leading airline group in Latin America and the world
Presence in five domestic markets and connections to North America, Europe, Africa and Australia/Oceania.
26 Countries & | 74 million passengers | 137 billion ASK in | Joint Venture with | |
148 Destinations | carried in 2023 | 2023 | Delta Air Lines | |
(+18.3% vs 2022) | (+20.6% vs | 2022) |
Leading cargo network in Latin America
Over 45 million members in loyalty program
333 aircraft in 2023
Key 2023 financial highlights:
US$11.8 billion | US$2.5 billion | US$498 million |
revenues | adj. EBITDAR | cash generation |
11.3% adj. | US$582 million | Passenger CASK ex |
operating margin | net income | fuel US$4.3 cents. |
Main shareholders represent approximately 70%: Sixth Street, Strategic Value Partners, Delta Air Lines, Qatar Airways, Cueto Group.
Best Airline in South America at the World Airline Awards by Skytrax (4th consecutive year) and Best Staff, Best Main Cabin, Best Business Class.
Five Star Global Airline in APEX 2024
ranking (2nd consecutive year).
#1 in on-time performance among Latin American Airlines and #2 among global airlines according to the OAG.
Best sustainability performance according to the latest Corporate Sustainability Assessment (CSA) by S&P.
The Best Program of the Year by the
Frequent Traveler Awards in 2023.
Data as of December 2023, Financial Statements and Traffic Releases; 2. Management estimate | |
Source: Financial Statements December 2023 | 3 |
LATAM group has a unparalleled, expansive network
- During 2023 LATAM group launched 21 routes: 4 domestic and 17 international.
148 | 8 |
North America1 | |
Destinations | ATLANTA |
Joint Venture with | |
Delta Air Lines. |
- Ongoing passenger commercial agreements with 57 airlines.
- Codeshare agreements with 27 airlines.
3
Oceania
128
South America
As of December 31, 2023.
(1): North America includes only US, Canada and Mexico.
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Europe
1
Africa
4
LATAM group affiliates are leaders in their domestic markets and continued to gain market share in 2023
- Only airline group in the region with presence in five domestic markets.
Domestic Affiliates Market Shares
Q4 2022 vs Q4 2023
61% | #1 |
59% | 33% #2 |
Airlines Chile | |
Airlines Colombia 24% | |
39% | #1 |
Airlines Brazil
38%
Airlines Peru
Airlines Ecuador
64% 1
#
62%
44% #2
42%
Source: ANAC Brazil's website (RPKs), JAC Chile's website (RPKs), DGAC Peru's website (number of passengers carried), Diio.net for Colombia and Ecuador (ASKs) . | 5 |
Leading passenger airline group connecting South America to the world with an unique and expansive network
International Market Shares
Q4 2022 vs Q4 2023
Joint Venture with Delta
Q4 2022 vs Q4 2023
Within South America
42% #1
39%
South America - North America2
36% 1
#
33%
South America - North America1
20% #1
19%
6 routes launched jointly:
South America - Oceania / Asia Pacific
73% #1
70%
• | Atlanta- Cartagena | • | Sao Paulo - Los Angeles |
• | New York- Rio de Janeiro | • | Medellin - Miami |
• | Bogota - Orlando | ||
• Lima - Atlanta (First LATAM | |||
operation in Atlanta) |
South America - Europe
17%
17%
Routes to be launched jointly: | • Santiago - Orlando |
(June 2024) |
(1): Calculated in the following countries; Brazil, Colombia, Chile Peru, Ecuador, United States, Canada, Mexico and Dominican Republic. | 6 |
(2): Calculated in the countries where the JVA operates which includes Brazil, Colombia, Chile Peru, Paraguay, Uruguay, United States and Canada. / Source: Diio.net (ASKs) | |
Latin America air travel market has significant growth opportunities and untapped potential
Recovery Regional Passenger Index from 2019
108%113% | 119% | 112% | 119% |
109% | |||
95% | 100%106% | 99% | |
87% | |||
74% |
Latin AmerIca & Caribbean | North America | World | ||||||
2022 | 2023 | 2024 | 2025 | |||||
Full recovery of operations for the region achieved in 2023 and great potential for growth in the region and the industry in the coming years.
Trips per capita have been increasing in South America throughout the last decade. However, there is an important gap to cover vs other more penetrated markets.
Real GDP Per Capita vs. Passengers Carried in Latin America
5.5x 6.2%
1.1% | 1.8% | 1.5% | |
Real GDP Per Capita | Passengers Carried | US Passengers | Real GDP Per Capita |
CAGR '00-'19 | CAGR '00-'19 | Carried CAGR '00-'19 | CAGR '22E-'27E |
Annual Trips Per Capita
2.6 | ||||||
0.78 | 1.21 | |||||
0.44 | 0.45 | 0.65 | 0.72 | |||
Ecuador | Brazil | Peru | Mexico | Colombia | Chile | USA |
Latin American Markets | Other Selected |
Market | |
Source: IATA Global Outlook for Air Transport December 2023 and IATA's Welcome to Wings of Change Americas presentation July 2023. World Economic Outlook, April 2022. | 7 |
In 2023, LATAM outperformed both its guidance and its updated business plan, and strengthened its financial position
Annual Revenues | |||
(US$ million) | |||
10,431 | 9,517 | +23.9% | 11,789 |
2019 | 2022 | 2023 |
Annual Adj. EBITDAR | ||
(US$ million) | ||
2,212 | +92.7% | 2,533 |
1,314 | ||
2019 | 2022 | 2023 |
Outperformed 2023 guidance (US$ 11.3 - 11.6 billion) and updated business plan (US$ 11.5 billion).
Annual Adj. EBIT Margin
(% of revenues)
7.1% | +9.8pp | 11.3% | |
1.4% | |||
2019 | 2022 | 2023 |
Outperformed 2023 guidance (US$ 2.35 - 2.5 billion) and updated business plan (US$ 2.0 billion).
Annual Net Income
(US$ million)
582 | ||
190 | ||
-341 | ||
2019 | 2022 | 2023 |
Outperformed 2023 guidance (10% - 11%) and updated business plan (5.6%). | Record net income. |
(*) Excludes non operational positive impacts from Chapter 11 restructuring activities and exit in 2022, which totaled US$1,680 million. | 8 |
LATAM group continued to grow in 2023 and accomplished notable operational results
ASK (billion)
Load Factor (%)
Passengers (million)
RASK (US$ cent)
113.9 | 137.3 | 81.3% | 83.1% | 62.5 | 73.9 | |
6.7 | 7.4 | |||||
Consolidated | +20.6% | +1.7pp. | +18.3% | +10.4% | |||||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | ||||||||||
40.9 | 44.8 | 79.5% | 80.8% | 28.6 | 33.0 | 6.7 | 8.2 | ||||||||||
Domestic Brazil | |||||||||||||||||
+9.5% | +1.3pp. | +15.4% | +21.2% USD | ||||||||||||||
+17.0% BRL | |||||||||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | ||||||||||
25.0 | 81.0% | 82.0% | 25.3 | 28.0 | 7.7 | 8.0 | |||||||||||
Domestic SSC | 23.4 | ||||||||||||||||
+6.8% | +1.0pp. | +10.7% | +4.9% | ||||||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | ||||||||||
49.6 | 67.5 | 83.0% | 84.9% | 6.5 | 7.0 | ||||||||||||
12.9 | |||||||||||||||||
International | 8.6 | ||||||||||||||||
+36.2% | +50.1% | +7.6% | |||||||||||||||
+1.9pp. | |||||||||||||||||
2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
Note: Domestic SSC refers to domestic operations of LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru, Domestic Brazil refers to LATAM Airlines Brazil domestic operations and International | 9 |
refers to international operations of LATAM Airlines Brazil, LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru. |
During 2023, 46% of LATAM group's passenger revenues came from international operations
- Which experienced a significant boost throughout the year, further supported by the recovery of the international demand and the increase in our corporate passengers revenues, which have surpassed 2019 levels.
Full Year Revenues by Business
(% of FY revenues)
Other; 1%
Cargo; 12%
Full Year Passengers Revenues by Segment
(% of FY revenues)
Domestic SSC; 19% | International; 46% |
Passengers; 87%
Domestic Brazil; 35%
Note: Domestic SSC refers to domestic operations of LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru, Domestic Brazil refers to LATAM Airlines Brazil domestic operations and International | 10 |
refers to international operations of LATAM Airlines Brazil, LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru. |
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LATAM Airlines Group SA published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 17:05:22 UTC.
