LATAM Benefits from Easing of Travel Restrictions in Q-2

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Aug 10. LATAM Airlines Group benefited from increased passenger demand during the second quarter of 2022as numerous Latin American countries relaxed travel restrictions, making travel easier than it has been for two years.

The Santiago-based carrier on 9 August reported that its operating revenue rose to $2.23 billion, more than doubling its revenue during the same period in 2021. That figure was still 6% lower than in 2019, though.

Still, the company posted a loss for the quarter, as expenses also almost doubled. In the three months between April and June, LATAM says it lost $523 million. That compares to a second quarter 2021 loss of $770 million.

LATAM’s capacity, as measured in available seat kilometres (ASKs), was 72.6% of the same quarter in pre-pandemic 2019, and more than double that of the same period a year earlier. Much of that was driven by domestic demand in Brazil, Colombia and Ecuador and what the company calls “a marked recovery” in international operations as well.

Last month, the US Department of Transportation (DOT) tentatively approved a proposed joint venture agreement (JVA) between Delta Air Lines and LATAM, with certain conditions attached, which had been more than two years in the making. The joint venture had been approved by Chilean competition authorities in October 2021.

Source: Flight Global

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