Latam Airlines Group S.A 6-K, filed Jan 20, 2023
Latam Airlines Group S.A. (LTM)
About this 6-K
Latam Airlines Group S.A filed this 6-K on January 20, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
January 2023
Commission File Number 1-14728
LATAM Airlines Group S.A.
(Translation of Registrant’s Name Into English)
Presidente Riesco 5711, 20th floor
Las Condes
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
LATAM AIRLINES GROUP S.A.
The following exhibit is attached:
| EXHIBIT NO. | DESCRIPTION | |
| 99.1 | Latam Airlines Group Announces Guidance for the Close of 2022 and Full Year 2023 |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: January 19, 2023 | LATAM AIRLINES GROUP S.A. | |
| By: | /s/ Ramiro Alfonsín | |
| Name: | Ramiro Alfonsín | |
| Title: | CFO | |
2
Exhibit 99.1
LATAM group announces guidance for the close of 2022 and full year 2023
Santiago, (Chile) January 19, 2023 – LATAM Airlines Group S.A. and its subsidiaries, (“LATAM Airlines Group” or “the Company”) (SSE: LTM), which offer leading connectivity for passenger and cargo transport in Latin America, today reported its guidance for the end of 2022 and full year 2023 based on the following assumptions and expectations. The information provided below is preliminary and unaudited.
| ● | LATAM expects to outperform the Updated Business Plan for 2022, closing the year with a fourth quarter Adjusted EBIT margin (excluding non-recurring items) of approximately 7.5%. |
| ● | For the full year 2023, the group estimates a growth in its passenger and cargo operations of approximately 20% versus the previous year, in line with the previous Updated Business Plan figures published in August 2022. |
| ● | Passenger CASK ex-fuel of US$4.0 to 4.1 cents for the full year 2023, reflecting the transformation of LATAM post Chapter 11 and the result of important cost savings initiatives fully implemented, as well as a continued focus on costs. |
| ● | Adjusted EBITDAR generation of between US$2.0 - US$2.2 billion in 2023, reaching nearly 2019 levels. |
| ● | LATAM estimates a financial net debt at the end of 2023 of US$6.1 - US$6.2 billion, a reduction of about 30% compared to the end of 2019. |
| Guidance | 4Q22E | 2022E | 2023E | |||||||||||
| ASK Growth vs 2022 (billion) | International | 15 | 50 | 37 - 40 | % | |||||||||
| Brazil Domestic | 11 | 41 | 8 - 11 | % | ||||||||||
| Spanish Speaking Countries Domestic | 6 | 23 | 8 - 11 | % | ||||||||||
| TOTAL | 32 | 114 | 20 - 24 | % | ||||||||||
| ATK Growth vs 2022 (billion) | 1.7 | 6.3 | 20 - 23 | % | ||||||||||
| Revenues (US$ billion) | ~2.7 | ~9.5 | 11 - 11.5 | |||||||||||
| CASK ex fuel (US$ cents) | ~4.9 | ~5.1 | 4.6 - 4.7 | |||||||||||
| Passenger CASK ex fuel1 (US$ cents) | ~4.2 | ~4.3 | 4.0 - 4.1 | |||||||||||
| EBIT Margin | ~3.5 | % | ~(2 | )% | 5 - 7 | % | ||||||||
| Adjusted EBIT Margin2 | ~7.5 | % | ~1 | % | 6 - 8 | % | ||||||||
| Adjusted EBITDAR2 (US$ billion) | ~0.5 | ~1.3 | 2.0 - 2.2 | |||||||||||
| Liquidity3 (US$ billion) | ~2.3 | 2.3 - 2.4 | ||||||||||||
| Financial Net Debt4 (US$ billion) | ~5.5 | 6.1 - 6.2 | ||||||||||||
| Net Debt/Adjusted EBITDAR (x) | ~4.2x | 2.9x - 3.1x | ||||||||||||
| Assumptions | ||||||||||||||
| Average exchange rate (BRL/USD) | 5.28 | 5.15 | ||||||||||||
| Jet fuel price (US$/bbl) | 136 | 140 | Consistent with current market prices |
Footnotes:
1) Passenger CASK ex fuel excludes cargo costs associated with belly and freighter operations and variable Aircraft Rental expenses (non-cash P&L effect).
2) Adjusted EBIT Margin and Adjusted EBITDAR exclude non-recurring items and variable Aircraft Rental expenses (non-cash P&L effect).
3) Liquidity is defined as Cash and Cash Equivalents and undrawn, committed revolving credit facilities.
4) Financial Net Debt includes operating leases liabilities, financial leases and other financial debt excluding associated guarantees, net of Cash and Cash Equivalents.
| INVESTOR RELATIONS CONTACT INFORMATION | |
| LATAM Airlines Group S.A. | |
| Investor Relations | 1 |
| InvestorRelations@latam.com | |
| Tel: (56-2) 2565-3844 | |
| www.latamairlinesgroup.net |
Note on Forward-Looking Statements
Assumptions and expectations are not facts but a good faith estimate of reality based on selected information believed reasonable. However, reality may differ from assumptions and expectations. This report also contains forward-looking statements. Such statements may include words such as “may” “will,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “believe” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on LATAM’s current plans, estimates and projections and, therefore, you should not place undue reliance on them or on estimates based thereon. Forward-looking statements involve inherent known and unknown risks, uncertainties and other factors, many of which are outside of LATAM’s control and difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. The financial information contained herein does not constitute or replace in any way the delivery of the financial statements corresponding to the Comision para el Mercado Financiero (CMF) and the market, regarding the content requirements of the same, the applicable procedures and the submission deadlines corresponding to the CMF pursuant to applicable regulations. These factors and uncertainties include in particular those described in the documents we have filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them, whether in light of new information, future events or otherwise.
About LATAM Airlines Group S.A.
LATAM Airlines Group S.A. is the leading airline group in Latin America, with presence in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, as well as international operations within Latin America and to Europe, the United States, the Caribbean and Oceania.
The group has a fleet of Boeing 767, 777, 787, Airbus A321, A320, A320neo and A319 aircraft.
LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the cargo subsidiaries of the LATAM group, having a combined fleet of 16 cargo aircraft, which will gradually increase up to a total of 20 cargo aircraft by 2024. These cargo subsidiaries have access to the group’s passenger aircraft and operate within the LATAM group’s network, as well as on exclusive international routes for cargo transportation. In addition, they offer modern infrastructure and a wide variety of services and service options to meet the needs of their customers.
| INVESTOR RELATIONS CONTACT INFORMATION | |
| LATAM Airlines Group S.A. | |
| Investor Relations | 2 |
| InvestorRelations@latam.com | |
| Tel: (56-2) 2565-3844 | |
| www.latamairlinesgroup.net |