Yesterday, executives from LATAM Airlines held a news conference to share their positive outlook for the company's future. Despite facing bankruptcy in November, the South American airline has seen improved forecasts and stronger second-quarter results.
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Ramiro Alfonsin, the airline's chief financial officer, shared that they are expecting "record" net earnings in 2023. According to the company's quarterly report filing, they have raised their revenue forecast for 2023 to between $11.3 billion and $11.6 billion, up from $11 billion-$11.5 billion.
Additionally, the airline raised their 2023 forecasts for adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) to between $2.35 billion and $2.50 billion, up from $2 billion-$2.2 billion. Alfonsin also stated that the company expects to hit pre-pandemic level results for the year and record EBITDAR. Despite the challenges faced during the pandemic, LATAM Airlines remains the largest airline in South America and operates units across the continent, with routes across the world. In the second quarter of this year, the company posted a net profit of $145.25 million, reversing the year-ago loss on increased revenues of $2.63 billion. The appreciation of the Brazilian real also gave the company a $26 million boost in revenues.
The company attributes its success to good performance in the passenger business and improved fuel costs, with operating costs coming in at $2.45 billion. However, the airline did face a $1 million fine from the U.S. Department of Transportation in May for failing to provide timely refunds to passengers for U.S. flights. Despite this setback, LATAM Airlines is forecasted to grow its available seat kilometers (ASKs), a measure of passenger-carrying capacity, by 20%-22% this year compared to 2022.