LATAM Airlines Group Publishes Q2 Results

LATAM Chile aircraft approaching to land.
Oliver Holzbauer, CC BY-SA 2.0 , via Wikimedia Commons

LONDON – On August 10, the South American group, LATAM, posted its latest second quarter (Q2) results, signifying a positive improvement in its Chapter 11 filing.

LATAM Q2 Results

To set things off, the LATAM Group reported that its Q2 2022 financial standings have resulted in a loss at US$523.2 million. This is mainly because of heightened expense prices, amongst other things, including their Chapter 11 filing.

Despite the loss that the group had suffered yet again during Q2 of this year, LATAM’s total operating revenues across all of its subsidiaries totalled US$2.226 billion. This figure is still 6.1% less than what they achieved during the same period in 2019 (pre-pandemic), however, in comparison to 2021, it is a remarkable 150.5% increase.

As mentioned above their total losses, were mostly driven by a 3.5% increase in operating expenses when compared to 2019, of which the sky-rocketing fuel prices had increased at a record high for the group of 31.5%.

Back in May 2020, the LATAM Group filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Court in order for a reorganisation to take place.

This was accepted by the U.S. Bankruptcy Court and permitted the group to continue its scheduled passenger and cargo operations whilst the reorganisation of its finances took place.

As the Covid pandemic erupted at the start of 2020, many of the world’s airlines had to opt for governmental loans or beneficiaries in order to survive whilst the demand for air travel was at an all-time low, due to many countries’ governments implementing restrictions to travel becoming ‘essential only’.

This of course took a turn resulting in ticket sales near enough halting and of course many businesses needed to survive.

Most carriers thrived off of cargo operations as the need for cargo transportation requirements shot up, especially as the vaccination phases for the virus had come into play.

LATAM Group was one to file for Chapter 11 in order to protect its assets during the pandemic, and to enable its finances to be reorganise-evaluated for the business to continue operations.

Come two years on since their Chapter 11 filing, the group is now beginning to see a slow return to profitability, which is showing signs that the group is recovering as the demand for air travel begins to pick up the pace, back towards 2019 levels and above.

Commenting on the group’s improvement in their Q2 2022 financial standings, LATAM Airlines Group’s Chief Executive Officer (CEO), Roberto Alvo, has said, “We have closed a second quarter with significant progress in our reorganisation process under Chapter 11 and we hope to emerge from it during the last quarter of this year.”

“Although the group has made advances in its operational recovery, we continue to remain cautiously optimistic about the coming months, closely monitoring fuel prices and macroeconomic variables, as the industry still finds itself in the midst of a very dynamic environment.”


Hopefully, the LATAM Airlines Group does return to profitability by the end of the year, ultimately enabling them to exit Chapter 11 and thrive off their own reinvigorated finance position. Along with their recent joint venture with the U.S. carrier, Delta Air Lines.

It will be interesting to see how the remainder of the year pans out for the LATAM Group and if their recovery continues to be as strong or if not stronger than we are currently seeing.

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Jamie Clarke

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