LATAM Airlines Group, the largest airline in Latin America, reported fourth quarter net losses of $962.5mn. For the full year 2020, the airline reported overall losses of $4.6bn vs $196mn in profits during 2019. Total revenues in Q4 amounted to $897.5 million, down 68.7% YoY mainly driven by an 81.6% decline in passenger revenues resulting from a 67.1% decrease in capacity. Cargo and freight operations helped partially offset the passenger revenue declines, up 26.7% and 21% respectively. Last May, the airline filed for bankruptcy protection. In the U.S., LATAM is still in the process of a restructuring supervised by courts. At the end of the year, LATAM held $1.7bn in cash and equivalents, cushioned by the significant amount of debt that it accumulated with the process of bankruptcy. LATAM’s financial debt stood at $7.6bn, a $835mn decrease QoQ. “We will emerge as a closer, simpler, more agile and more efficient company. We have no doubt that when the crisis passes, LATAM will operate as a strengthened group”, said CEO Roberto Alvo.
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