Fabian Cambero

SANTIAGO – Latin America’s most important airline LATAM Airlines reported losses of approximately $692M in its third quarter. However, the company, which is heavily indebted, said that the coronavirus virus pandemic continues to challenge it.

LATAM saw its total revenue rise to $1.31billion during the July-September quarter. This is a 156% increase over last year’s period but just half of what it was before the outbreak in 2020.

“Despite the pandemic, which is not over yet and that is still having an impact, we have managed to close a third quarter with better operational performance in all businesses,” Finance Vice President Ramiro Alfonsín told reporters.

This was due to a stronger performance in domestic travel markets and solid cargo businesses, which offset weaker performances on international routes affected by current global travel restrictions.

Operating capacity was close to 50% of pre-pandemic levels for quarter and Alfonsin stated that it expects to achieve around 65% by year’s end. Alfonsín said he expected the airline’s key Brazilian operation to recover to pre-pandemic levels by the end of 2021 or early 2022.

LATAM applied for bankruptcy protection in America on May 20, 2020 due to the effects of restrictions related to pandemic. Alfonsín said on Tuesday that the airline would present the reorganization plan this month.

He said, “Now we’re finalizing details for our reorganization plans. For that, we are meeting stakeholders. We hope to present before November 26.”

The airline is a result of the 2012 merger between Chile’s LAN (Brazil) and TAM (Brazilian rival). It operates units in Chile as well as Brazil, Colombia, Colombia, Peru and Brazil.