LATAM’s strong performance and positive financial projections accompanied the Ring The Bell Ceremony and Investor Day at the New York Stock Exchange

LATAM Airlines Group S.A. rang the opening bell at the New York Stock Exchange, marking its much-anticipated return to the world’s leading stock market, which it exited in 2020 due to the pandemic’s impacts and a financial restructuring process. LATAM first listed on the New York Stock Exchange in 1997 as LAN Chile and was the first Latin American airline to trade American Depositary Receipts (ADRs).

During the event, LATAM Airlines Group S.A. Chairman Ignacio Cueto said a few words to the attendees, highlighting that [i"today, we are beginning a new chapter in LATAM’s history. A chapter in which we aim to lead, innovate, and grow in ways that positively impact our customers, the communities we serve, the markets we compete in, and the world at large"[/i]

LATAM Airlines Group S.A. CEO Roberto Alvo added, "we are very proud to return to the world’s leading stock market at such an opportune time. This year has been marked by strong results across various areas, allowing us to significantly update our financial projections for 2024. Being here today is a recognition of the hard work and dedication of everyone at LATAM, which drives us to move forward with even more determination"

LATAM held its first "Investor Day" where the central theme was its unique value proposition in the region and its plan to foster sustainable and profitable growth. The event, attended by investors and analysts, featured presentations from Roberto Alvo, CEO of LATAM Airlines Group S.A.; Ramiro Alfonsín, CFO of LATAM Airlines Group S.A.; Hernán Pasman, COO of LATAM Airlines Group S.A.; and Paulo Miranda,Chief Customer and Experience Officer for LATAM Airlines Group S.A.

The presentations focused on LATAM’s competitiveness, highlighting how it is the largest airline group in South America and the tenth-largest globally, with a commitment to offering the best travel solutions to its customers while being financially solid and striving to be a sustainable group that adapts to new technologies.

Improved Projections 

LATAM updated its 2024 guidance. In terms of capacity, measured in available seat kilometers (ASK), LATAM reported that it expects growth between 15% and 16% compared to the previous year. Additionally, the group projects an adjusted passenger unit cost, excluding fuel, between 4.2 and 4.3 cents, lower than initially projected.

LATAM expects adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent costs) between US$3.0 billion and US$3.15 billion. The group also anticipates a leverage ratio of 1.6 to 1.7 times by year-end, at the lower end of its previous guidance

LATAM has secured an order for over 120 aircraft through 2030, which supports its future growth. During the Investor Day, LATAM presented its commitments with Airbus, Boeing, and lessors, totaling 106 narrow-body aircraft (single aisle) and 19 wide-body aircraft (dual aisle), including the recent purchase of 10 Boeing aircraft, securing the few available production slots through 2030. This is part of the group’s commitment to maintaining one of the most modern and efficient fleets in South America.

Currently, LATAM has 341 aircraft, 56 Boeing passenger planes (models 767, 777, and 787), and 263 Airbus planes (models A319, A320, A320neo, A321, and A321neo). At its Investor Day, LATAM emphasized that it has secured competitive pricing for 90% of its fleet through 2029, with increases only related to the addition of new-generation aircraft.

It’s a strong moment for LATAM, with significant opportunities in the region driven by increased trips and GDP per capita growth. Today, it is the largest airline group in South America, the tenth-largest globally, and the leader in market share in the region, employing nearly 37,500 people. LATAM connects the region like no other, transporting more than 220,000 passengers daily on approximately 1,600 flights. Every 54 seconds, a LATAM flight takes off to one of the group’s 164 destinations across 31 countries. Today, nearly one in two passengers in South America flies with LATAM.

LATAM Cargo Group and its subsidiaries now operate the most comprehensive cargo network in the region, being the largest air cargo transport group in South America with 22 dedicated freighter aircraft (plus the cargo capacity in the bellies of all passenger planes).

LATAM is the only airline group in the region that connects South America with North America, Europe, Oceania, and Africa. It has commercial agreements with 57 airlines and codeshare agreements with 27 airlines, along with a joint venture with Delta, which holds a combined 38% market share in the regions where the JV operates between South America and North America.

Customer-Centered Business 

In addition to offering unparalleled connectivity, LATAM places its customers at the heart of its business, providing a unique value proposition in the region with a flexible product that adapts to the different styles and needs of its customers. LATAM is the only airline group in South America that offers premium seats on all its flights while allowing all customers to choose how they want to fly. Recently, it resumed a process to renovate its Boeing 787 aircraft, adding 24 planes to the plan for a complete overhaul of cabin interiors with new seats, in-flight entertainment, and design enhancements. It also implemented free Wi-Fi for LATAM Pass customers on domestic and regional flights, a service that covers 100% of the fleet in Brazil and over 60% of operations in Chile, Peru, and Colombia.

The group also has the LATAM Pass loyalty program, which allows members to accumulate miles by flying and using program-affiliated credit cards, which can be redeemed for tickets and products from the LATAM Pass catalog. Members also receive exclusive benefits—depending on their category—to enhance their onboard experience. Currently, the program has 48 million members and is a key part of LATAM’s relationship with its customers.

Regarding future investments to enhance customer experience, LATAM announced plans for 2025 to complete Wi-Fi installation on its narrow-body aircraft, launch its first VIP lounge in Lima (Peru), renovate its lounge in Miami (USA) and construct a new lounge in São Paulo (Brazil) within the next two years. LATAM also plans to expand its specialized "Signature Check-In" service, currently available only in Guarulhos, to Lima and Santiago soon. Another new development LATAM revealed is the introduction of a new type of business class seat, incorporating the "New Business Class Suite" concept for greater customer privacy, which will debut alongside a complete relaunch of the product and service offering.

Punctuality and Operational Excellence 

LATAM consistently strives to raise operational standards to further improve its customers’ experience. One key attribute is punctuality. LATAM’s OTP (on-time performance), which measures punctuality based on arrival times, has consistently been above 80% in recent years, placing LATAM among the top three most punctual airline groups globally.

Operational excellence is ingrained in LATAM’s culture. It’s based on three main pillars: the definition of ambitious goals, having leadership close to the operations, and building mechanisms for continuous improvement. This efficient operation has generated over US$130 million in incremental savings each year from operational areas.

LATAM aims to continue implementing initiatives to enhance efficiency, cost flexibility, and technology integration. It also highlights its internal maintenance capabilities (MRO) from its maintenance bases in Santiago (Chile) and São Carlos (Brazil), the largest in South America.

In terms of sustainability, LATAM has a robust strategy based on Climate Change, Circular Economy, Environmental Management, and Shared Value pillars, with significant progress made. In terms of Circular Economy, LATAM reduced 97% of single-use plastics in its operations in 2023, equivalent to more than 1,700 tons. Simultaneously, it managed 850,932 metric tons of greenhouse gas emissions through reduction or compensation measures as part of its focus on Climate Change. LATAM voluntarily achieved certification for its Environmental Management System under IATA’s IEnvA Stage 2 standard in its subsidiaries in Brazil, Chile, Colombia, Ecuador, and Peru, along with ISO 14001 certification for LATAM Cargo at its Miami base. In terms of Shared Value, LATAM maintains 46 partnerships offering free transport for health, environmental, and natural disaster relief efforts.

Outlook 

Considering the current context, LATAM announced that in 2025 it expects to have high single-digit capacity growth (year-over-year percentual ASK growth), to maintain its passenger unit cost (excluding fuel) in line with 4.2 to 4.4 cents, for adjusted EBITDAR to grow above capacity and for adjusted net leverage at or below 1.7x (times).