LATAM prepares for reorganization, eyes profitability

latam_airbus_a320neo.jpg

Thiago B Trevisan / Shutterstock.com

LATAM group released a five-year business plan with promises to exit financing soon and return to profitability by 2024.

The plan was laid out in the group’s press release published on September 9, 2021. It includes recovery predictions, as well as operational and financial plans through 2026.

The company claims it has received “several” financing offers from its “most significant claimholders”, each offer exceeding $5 billion.

The financing, LATAM explains, comes in anticipation of recovery and especially ramp-up of Brazil’s domestic travel, which is projected to reach 2019 levels in early 2022.

LATAM expects its total revenues to increase 13% by 2026, mostly on the basis of unprecedented growth in air cargo.

The negotiations on the company’s reorganization plan are ongoing, the release states.

Recently LATAM went on a purchasing spree reorganizing its fleet, aiming to make it cost-effective in the long run. 

Read more: LATAM signs agreement to buy 28 more Airbus A320neos

LATAM Airlines Group filed for bankruptcy in May 2020, followed by its subsidiaries LATAM Argentina and LATAM Brazil. The company retains the title of the largest airline in Latin America, and underwent numerous attempts to shake-off the disastrous effects of the COVID-19 pandemic.

 

Exit mobile version