Chile’s LATAM airline sees 2023 revenue taking off, up at least 15%
(Reuters) -LATAM Airlines, South America’s largest carrier, sees double-digit revenue growth this year, according to company guidance published in a statement on Thursday, as many airlines chart a more profitable future amid pent up demand from travelers.
The Chile-based airline’s revenues are expected to reach between $11 billion and $11.5 billion by the end of this year, compared to $9.5 billion estimated for 2022, which if achieved would mark an increase of nearly 16% to 21%.
Similarly, LATAM’s adjusted earnings before interest and taxes (EBIT) margin is expected to come in at 6%-8% this year, from around 1% in 2022, the company said.
The airline also forecast 2023 growth of around a fifth for passenger and cargo operations for this year.
In November LATAM announced the completion of a years-long restructuring process in the United States after it declared bankruptcy in 2020 due to the worldwide travel slowdown provoked by the coronavirus pandemic.
The airline’s financial net debt, however, is seen ticking up to between $6.1 billion-$6.2 billion this year, compared to some $5.5 billion in red ink estimated for 2022.
LATAM, born from the 2012 merger of Chile’s LAN with Brazilian rival TAM, operates units in Chile, Brazil, Colombia and Peru.
(Reporting by Valentine Hilaire and Carolina Pulice; Editing by David Alire Garcia and Chris Reese)