LATAM Airlines Group reported an operating income of US$48.2m and an operating margin of 2.1% for the quarter, an increase of 2.0 points compared to the same period last year. Despite being seasonally the weakest quarter of the year, these results reflects important improvements in revenue and cost management that LATAM has been able to achieve as it continues to focus on improving margins and cash flow generation. Total revenues during the second quarter 2017 reached US$2,273.7m showing an improvement of 7.7%. This increase was mainly driven by a 10.6% increase in passenger revenues, as a result of significant improvements in yields across all of LATAM’s markets as well as stronger local currencies, especially in Brazil. Furthermore, the increase in passenger revenues reflects the positive outcome of LATAM’s proactive capacity management, while continuing to offer the most extensive network in the region. During the first half of 2017, LATAM generated US$307.5m free cash flow, an increase of US$155.0m compared with the same period in 2016, as well as continuing to improve its leverage ratio (measured as adjusted net debt / EBITDAR) to 5.2x in June 2017, down from 5.9x in June 2016. Furthermore, liquidity reached US$2.1bn including US$375m of an undrawn revolving credit facility (RCF), marking solid progress as the group continues strengthening its balance sheet.
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[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada