Successfully delivered on a transformational plan to enhance LATAM's
performance
ASK (billion)
2015
2016
2017 2018
134
135
136 143
+6.7 %
Operational Fleet (units)
327
329
307
310 1
-5.2 %
EBIT Margin (%)
6,0%
7,0%
6,8%
5,1%
+170 bps
Net Income (US$ in million)
Free Cash Flow (US$ in million)
1.379
1.159
549
+400 mm
+1,183 mm
-24
Gross Debt (US$ in billion)
vs.15
Adjusted Net Leverage (x)
1 Excludes 2 short-term leased aircrafts, as of December 2018.
Full Year 2018 Highlights
Overcame relevant challenges including:
- Higher fuel cost (~US$664 million)
- Currencies devaluation
- Truckers strike in Brazil
- Cabin crew strike in Chile
- Engine maintenance (Rolls-Royce engines issues)
Delivered strong 2018 results:
- Operating Revenue of US$10.4bn
- Free Cash Flow of US$1,159 million
- EBITDAR of US$2.2bn
- Net income of US$182mm
Cost cutting initiatives supported 2018 resilient margin profile
$2.2bn reduction in fleet commitments between 2018 and 2021
Other Relevant Events in the Year
Announced intention to acquire the minority stake in Multiplus. Tender offer between March 1st - April 1st, 2019
Chile's Competition Court (TDLC), last pending authority in Latin America1, approved the JBAs between LATAM Airlines Group and American Airlines and IAG2
Source: Public Company filings.
1 Decision is being appealed before the Chilean Supreme Court. 2 British Airways and Iberia.
Q4 2018 Financial Summary
Total Operating Revenues
Passenger
Cargo Others
2,788 2,327 312 149
2,768 2,275 337 156
0.8% 2.3% -7.4% -4.5%
10,368 8,709 1,186 473
10,164 2.0% 8,494 2.5% 1,119 6.0% 550 -14.0%
Total Operating Costs
Fuel
Ex-fuel
-2,493 832 1,661
-2,498 651 1,847
-0.2% 27.9% -10.1%
-9,663 2,983 5,019
-9,449 2.3% 2,319 28.6% 5,284 -6.3%
Operating Income
Operating Margin
295 10.6%
270 9.8%
9.2% 0.8 p.p.
705 6.8%
715 -1.3%
7.0%
-0.2 p.p.
Net Income (Loss)
Foreign Exchange Gains/Losses
149 -12
67 -67
121.3%
NM
182 -158
155 -19
+17.1% 678%
EBITDAR
EBITDAR Margin
675 24.2%
660 23.9%
2.2% 0.3 p.p.
2,225 21.5%
2,296 22.6%
-3.1% -1.1 p.p.
Fourth Quarter 2018 Operating Statistics
International
(Long Haul & Regional)
Domestic BrazilSSC Domestic
+7.4%
+4.4%
+7.1%
+3.5%
+3.0%
+7.0%
83.1%
(-3.1 p.p.)
83.6%
(-1.1 p.p.)
82.3%
(-0.1 p.p.)
5.8
(-9.1%)
(-6.2%)
7.0
(-8.2%)
Passenger
+6.5% +1.1%
+4.0% -0.9%
83.0%
(-2.0 p.p.)
Cargo
57.3%
(-1.1 p.p.)
6.3
(-4.0%)
18.8
(-8.4%)
1 RASK by business unit includes ticket revenue, breakage, frequent flyer program contribution and ancillary revenues. Total passenger RASK considers reported passenger revenues and includes IAS21 and IAS29
2 Excluding proportional margin contribution from Multiplus
5
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Disclaimer
LATAM Airlines Group SA published this content on 13 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 March 2019 13:03:04 UTC