FILE PHOTO: A LATAM Airlines plane carrying a shipment of the Sinovac coronavirus disease (COVID-19) vaccine arrives at Carrasco Airport in Montevideo, Uruguay February 25, 2021. REUTERS/Mariana Greif
SANTIAGO (Reuters) – LATAM Airlines (OTC:LTMAY) reported a fourth-quarter net profit of $2.538 billion, the company said on Thursday, noting that all financial renegotiations stemming from its bankruptcy proceedings are reflected in the results.
The quarterly profit of South America’s leading airline compares to a loss of $2.755 billion during the same three-month period during the previous year.
Revenues for Santiago-based LATAM during the quarter rose about 38% to $2.75 billion from the year-ago period.
The airline, created by the 2012 merger of Chile’s LAN with Brazilian rival TAM, operates units in Chile, Brazil, Colombia and Peru.
Last November, LATAM announced the completion of a years-long restructuring process after it declared bankruptcy in 2020.
Chief Financial Officer Ramiro Alfonsin told reporters at a news conference on Thursday that “all renegotiations since we left Chapter 11” bankruptcy protection are now reflected in the quarter’s income statement as profits.
The company’s operating result – which excludes the restructuring process – reached $139 million in the quarter, according to the airline.
Meanwhile, LATAM’S total costs for the quarter stood at $2.6 billion, almost in line with pre-pandemic levels, despite a nearly two-thirds increase in fuel costs between 2019 and 2022.