LATAM Airlines Group (LTM) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial results in 2024, with 82 million passengers transported, 15.1% capacity growth, and net income of $977 million, nearly doubling year-over-year.

• Maintained industry-leading customer satisfaction, with a Net Promoter Score of 51 and lowest complaint rates in key markets.

• Recognized as the 4th most punctual global airline and the most sustainable airline group in the Americas, rejoining the Dow Jones Sustainability Index.

• Returned to NYSE in July 2024, reflecting renewed investor confidence.

Financial highlights

• Annual revenues grew 10.6% to $13.03 billion; Q4 revenues were $3.40 billion, up 4.4% year-over-year.

• Adjusted EBITDA/EBITDAR increased 23% to $3.1 billion; adjusted operating margin reached 12.7% for the year and 13.6% in Q4.

• Net income for 2024 was $977 million, with Q4 net income at $272 million, up over 227% year-over-year.

• Cargo revenues for 2024 were $1.60 billion (+12.2%); Q4 cargo revenues grew 29.1% year-over-year.

• Adjusted passenger CASK ex-fuel for 2024 was $0.042, down 1.5% from 2023.

Outlook and guidance

• 2025 guidance: revenue of $14.0–$14.5 billion, adjusted EBITDA/EBITDAR of $3.25–$3.6 billion, and adjusted operating margin of 12.0–13.5%.

• Capacity (ASK) expected to grow 7–9% in 2025, with 22 new aircraft additions and a fleet plan of 371 aircraft by year-end.

• Liquidity projected above $3.9 billion and adjusted net leverage at or below 1.7x.

• Management remains confident in guidance despite currency and fuel volatility, citing strong booking trends and diversified operations.