MercoPress. South Atlantic News Agency

LATAM's finances expected to recover in 2023 with passenger and cargo growth

In November LATAM announced the completion of a years-long restructuring process in the US after it declared bankruptcy in 2020 due to the worldwide travel slowdown

South America's largest carrier, LATAM expects double digit revenue growth this year, according to a company guidance to stock markets. The Chile-based airline's revenues are expected to reach between US$ 11 billion and US$ 11.5 billion by the end of this year, compared to US$ 9.5 billion estimated for 2022, which if achieved would mark an increase of nearly 16% to 21%.

Likewise 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, has climbed to between US$ 6.1 billion-US$ 6.2 billion this year, compared to some US$ 5.5 billion in red ink estimated for 2022.

LATAM, was born from the 2012 merger of Chile's LAN with Brazilian rival TAM, and operates units in Chile, Brazil, Colombia, Ecuador and Peru.