Latam adjusts the business plan according to the new macroeconomic context

In the course of the Chapter 11 process, Latam has updated its exit plan, with respect to the 5-year financial outlook, i.e. for 2027, adjusting it to the new global macroeconomic context. (Latam CEO: Concerns about the social and political situation and fuel prices).

Similarly, it has estimated cost savings of $900 million to more than $1,000 million annually and expects by 2024 to exceed 2019 revenue to reach $11.5 billion.

“This updated business plan reflects how the Latam Group is better prepared to meet future challenges, with a more competitive and flexible cost structure, with a more complete customer offering and an orientation toward more sustainable aviation,” said Latam Airlines CEO. Roberto Alfo Collection.

In parallel, Latam launched structural transformations: renegotiating the fleet, improving its relative cost position, strengthening its network and reducing its total debt by about 36% compared to pre-pandemic debt.

In terms of demand, the group expects a recovery in the domestic markets of its subsidiaries to 2019 levels by the end of 2022. However, in the case of Colombia, the recovery was reached in the first quarter of this year and it is expected that Brazil and Ecuador will achieve it during the third quarter.

In terms of international traffic, LATAM estimates that the recovery will be slower, reaching 2019 levels by mid-2023. It should be noted that international traffic represented about 45% of revenue in 2019.

By 2024, the group expects passenger operation measured in available seat kilometers (ASK) similar to that which occurred in 2019. In terms of revenue, by 2024 the group is expected to exceed 2019 levels, to reach US$11.5 billion.