LATAM Airlines Group recently announced its second quarter financial results, reflecting positive results progressing recovery path from the COVID-19 restrictions. The primary factors behind this recovery are positive results from Ecuador, Brazil, and Colombia with the resumption of international operations.
However, the rise in fuel prices poses challenges of increasing operating costs. The operating expenditure increased by 3.51% compared to 2019 in the same quarter because of the escalating fuel prices, which are 31.51% on the higher side compared to the same time in 2019. The dynamic prices have been posing to the airline, and LATAM airlines have been committed to looking for sustainable means.
LATAM Airlines CEO Roberto Alvo has responded to these challenges by saying they are following Chapter 11 to restructure processes in closing the second quarter of the year and expect to make further improvements in the last quarter of the year. He further said that they have been monitoring dynamic variable factors like fuel prices to chase better results.
During this recovery phase, LATAM airlines group has bought approval for the reorganization plan from the Unite states Bankruptcy code Court to secure its exit financing needs. For the plan implementation, the LATAM group of airlines at the shareholder’s meeting gained the necessary approvals for the company’s new capital structure and the financial instrument issuance from the majority stakeholders.
The United States Department of Transportation has primarily approved the joint venture between LATAM and Delta airlines.
Shifting focus toward sustainable means to reach carbon neutrality by 2050, LATAM airlines recently announced that it aims to focus on more production in South America. It aims for at least 5% sustainable fuel by 2030.
LATAM airlines express its intention to explore opportunities in carbon dioxide removal through DACCS(Direct Air Carbon Capture and Storage) systems. This announcement by LATAM airlines association and collaboration with other industry players signing LOI with Airbus.
LATAM airline vowed to adopt another sustainable and environment-friendly approach through the ” Recycle your trip” program.” The said program got implemented in Peru and the Colombian division, which requires segregating waste on board. This program is already operating in Chile and Ecuador domestic flights.
LATAM Airlines has signed cooperation agreements with ANIQUEM, Peru, and firefighters, Chile, for its solidarity plane programs. The LATAM airlines group signed more than twenty alliances over Latin American countries. The airlines believe that the future lies in sustainability- it’s essential to use available resources judiciously while discovering the ways and methods for sustainable living.