LATAM Airlines Group (LTM) Q3 2024 earnings summary

Executive summary

• Achieved record operational and financial results in Q3 2024, transporting 21.1 million passengers, a 7.1% year-over-year increase, and expanding capacity by 15.1%.

• Total operating revenues rose 7.6% year-over-year to $3.3 billion, with passenger and cargo segments both showing strong growth.

• Celebrated return to the NYSE and hosted first Investor Day, highlighting operational excellence and sustainable growth plans.

• Updated 2024 guidance for the second time, reflecting improved margins, higher adjusted EBITDAR targets, and strong demand.

• Maintained position as the largest airline group in South America and among the top 10 globally by seats and flights.

Financial highlights

• Adjusted EBITDAR/EBITDA reached $828 million (25.2% margin), up 14% year-over-year; net income for Q3 was $301 million, up 29.9% year-over-year.

• Year-to-date net income totaled $705 million, up 41.3% year-over-year.

• Revenues grew to $3.29 billion, with passenger revenue up 6.3% and cargo revenue up 15.7%.

• Adjusted passenger CASK ex-fuel decreased by 8.5% year-over-year to $0.04.

• Generated $157 million in free cash flow in Q3 2024, raising liquidity to $3.6 billion.

Outlook and guidance

• 2024 adjusted EBITDAR guidance raised to $3.00–$3.15 billion, with ASK growth of 15–16% year-over-year.

• Adjusted passenger unit cost ex-fuel expected at $4.2–$4.3 cents, lower than prior projections.

• Q4 margin expected to decelerate slightly due to seasonality, but confidence in full-year guidance remains high.

• Adjusted net leverage ratio forecasted at 1.6–1.7x by year-end.