6-K 1 d543872d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2013.

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  x             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):  ¨

 

 

 


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LATAM AIRLINES GROUP REPORTS CONSOLIDATED OPERATING INCOME OF US$114.2 MILLION FOR FIRST QUARTER 2013

Santiago, Chile, May 14, 2013 – LATAM Airlines Group S.A. (NYSE: LFL; IPSA: LAN; BOVESPA: LATM11), the leading airline group in Latin America, announced today its consolidated financial results for the first quarter ended March 31, 2013. “LATAM” or “the Company” makes reference to the consolidated entity, which includes passenger and cargo airlines in Latin America. All figures were prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in U.S. Dollars. The Brazilian real / US dollar average exchange rate for the quarter was BRL 2.00 per USD.

HIGHLIGHTS

 

   

LATAM Airlines Group reported operating income of US$114.2 million for first quarter 2013, a 149.8% increase compared to the US$45.7 million pro forma operating income in first quarter 2012. Operating margin reached 3.4%, an increase of 2.0 points compared to 1.4% in 2012. This result reflects a steady recovery in business operations as we advance in the process of achieving the expected synergies from the merger between LAN and TAM.

 

   

Net income reached US$42.7 million for first quarter 2013, compared to a pro forma consolidated net income of US$83.7 million for the same period 2012, which represents a decrease of 48.9% mainly due to a foreign exchange gain of US$133.4 million recognized at TAM during the first quarter 2012.

 

   

TAM continues to make significant progress in the turnaround of the domestic Brazil passenger operations, maintaining capacity discipline with a 9.2% reduction in ASKs during the first quarter 2013 as compared to the first quarter 2012. Healthy traffic growth of 3.4%, as well as improved market segmentation and revenue management practices have resulted in strong load factor improvements of 9.5 percentage points as compared to the first quarter 2012, reaching 77.7%. This led to a significant increase in revenue per ASK, as measured in Brazilian reais. Results in U.S. dollars were affected by a 13% depreciation of the Brazilian currency during the quarter as compared to the first quarter 2012. We remain convinced that capacity discipline and an adequate segmentation of the market will provide the basis for continued healthy load factors and a significant improvement in operating results in 2013.

 

   

We remain confident in our synergy target of between US$600 and US$700 million, to be fully achieved by the fourth year after the merger (June 2016). Important progress was made in recent months with the code share agreement signed between TAM and American Airlines as well as with LATAM’s election of one world as its global alliance. We have begun to harmonize the airlines’ frequent flyer programs, as well as advanced on cost initiatives related to contract renegotiations and process standardization. Furthermore, important synergies have been achieved through the coordination of the LAN and TAM cargo operations. We expect merger synergies to be between US$250 and US$300 million during 2013. However, we expect to continue to incur certain costs related to the integration process.

 

   

Total revenues in the first quarter 2013 reached US$3,409.0 million compared to pro forma revenues of US$3,360.2 million in first quarter 2012. The increase of 1.5% is a result of a 1.5% increase in passenger revenues and a 38.6% increase in other revenues, partially offset by a 3.2% decrease in cargo revenues. The slight increase in revenues reflects capacity reductions in the domestic Brazil passenger operations and a more challenging environment for international passenger operations, as well as weak market demand in the cargo business. Passenger and cargo revenues accounted for 84.2% and 13.5% of total revenues, respectively, in first quarter 2013.

 

   

During the first quarter 2013, LATAM received a total of 5 Airbus A320 family aircraft and 1 Boeing 767-300 passenger aircraft.Furthermore, the Company returned 1 Airbus A320-200 and sold 2 Airbus A318 aircraft.

 

LATAM Airlines Group S.A. 1Q13


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RECENT EVENTS

Codeshare agreement between TAM and American Airlines approved by CADE

In April, 2013, the Brazilian Antitrust Authority, Superintendência-Geral do Conselho Administrativo de DefesaEconômica (CADE), approved the code share agreement between TAM and American Airlines for routes between Brazil and the United States and Canada. We expect the code share to be implemented during the third quarter 2013, providing more options for travelers who will be able to take advantage of the broad network of American Airlines destinations throughout North America.

This is a very important milestone in the process of achieving the passenger revenue synergies. Through this code share agreement, TAM passengers will be able to reach 52 cities in the United States and Canada from Miami, New York and Orlando, using the route network of American Airlines.

Proposed Equity Offering

On April 30, 2013, LATAM Airlines Group announced that its Board of Directors agreed to call an Extraordinary General Shareholders Meeting for June 11, 2013, in order to submit for shareholder approval an increase in the shareholders’ equity of the Company in the amount of US$1.0 billion, through the issuance of a number of ordinary shares, for the purpose of financing part of its investment plan for the following years, especially fleet growth and renewal requirements, as well as to strengthen the financial position of the Company.

Multiplus

Multiplus ended the first quarter of 2013 with 11.3 million members, a 15.0% growth compared to the same quarter of last year. The partnerships network achieved 383 partners, compared to 200 in the same period of 2012. As for financial results, Multiplus closed the quarter with billings from the sale of points amounting to US$246.1 million (R$492.1million), a 14.3% increase compared to first quarter 2012.

 

LATAM Airlines Group S.A. 1Q13


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LATAM AIRLINES GROUP CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER 2013

Following is the LATAM Airlines Group Consolidated Income Statement for first quarter 2013, in thousands of US dollars. Pro forma results for first quarter 2012 are presented for comparison purposes.

 

     For the three month period ended March 31  
     2013     2012     % Change  

REVENUE

      

Passenger

     2.871.378        2.828.937        1,5

Cargo

     460.394        475.607        -3,2

Other

     77.195        55.687        38,6
  

 

 

   

 

 

   

 

 

 

TOTAL OPERATING REVENUE

     3.408.967        3.360.231        1,5

EXPENSES

      

Wages and Benefits

     -617.370        -667.110        -7,5

Aircraft Fuel

     -1.245.155        -1.209.300        3,0

Commissions to Agents

     -90.188        -115.276        -21,8

Depreciation and Amortization

     -290.893        -285.972        1,7

Other Rental and Landing Fees

     -359.064        -338.568        6,1

Passenger Services

     -84.519        -82.160        2,9

Aircraft Rentals

     -106.500        -104.393        2,0

Aircraft Maintenance

     -108.385        -104.191        4,0

Other Operating Expenses

     -392.692        -407.536        -3,6
  

 

 

   

 

 

   

 

 

 

TOTAL OPERATING EXPENSES

     -3.294.766        -3.314.506        -0,6

OPERATING INCOME

     114.201        45.725        149,8
  

 

 

   

 

 

   

 

 

 

Operating Margin

     3,4     1,4     2,0 pp   

Interest Income

     29.827        39.315        -24,1

Interest Expense

     -110.175        -107.811        2,2

Other Income (Expense)

     37.502        155.614        -75,9

INCOME BEFORE TAXES AND MINORITY INTEREST

     71.355        132.843        -46,3

Income Taxes

     -32.873        -42.229        -22,2

INCOME BEFORE MINORITY INTEREST

     38.482        90.614        -57,5

Attributable to:

      

Shareholders

     42.745        83.714        -48,9

Minority Interest

     -4.263        6.900        -161,8

NET INCOME

     42.745        83.714        -48,9
  

 

 

   

 

 

   

 

 

 

Net Margin

     1,3     2,5     -1,2 pp   

Effective Tax Rate

     43,5     33,5  

Shares Outstanding

     483.555.791        n.a     

Earnings per Share (US$)

     0,09        n.a     
  

 

 

   

 

 

   

 

 

 

EBITDA

     405.094        331.697        22,1

EBITDA Margin

     11,9     9,9     2,0 pp.   
  

 

 

   

 

 

   

 

 

 

EBITDAR

     511.594        436.090        17,3

EBITDAR Margin

     15,0     13,0     2,0 pp.   
  

 

 

   

 

 

   

 

 

 

Note: Complete quarterly pro forma income statement information can be found on the Company’s website at www.latamairlinesgroup.net

 

LATAM Airlines Group S.A. 1Q13


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MANAGEMENT COMMENTS ON FIRST QUARTER 2013 RESULTS

LATAM Airlines Group reported net income of US$42.7 million for first quarter 2013, compared to a pro forma consolidated income of US$83.7 million for the same period 2012, which represents a decrease of 48.9% mainly due to a foreign exchange gain of US$133.4 million recognized at TAM during the first quarter 2012. The Company reported a significant improvement in terms of operating income, which reached US$114.2 million, a 149.8% increase compared to the US$45.7 million in first quarter 2012. Operating margin reached 3.4%, an increase of 2.0 points compared to 1.4% in 2012. This result reflects a steady recovery in business operations as we advance in the process of achieving the expected synergies from the merger between LAN and TAM.

During first quarter 2013, LATAM’s consolidated revenues increased 1.5% compared to first quarter 2012.

Passenger revenues increased 1.5% during the quarter, driven by 6.1% traffic growth, partially offset by a 4.3% decrease in yields. Load factor increased from 77.3% to 78.8%, as traffic growth outpaced the 4.0% increase in capacity. Overall, revenues per ASK (RASK) decreased 2.4% as compared to first quarter 2012.

During the first quarter 2013, the domestic operations of the Company’s Spanish speaking countries (SSC) continued to show strong traffic growth. Passenger traffic growth during the quarter reached 11.5%, while load factors reached 80.7%, 0.6 points higher than 2012. Total passenger capacity as measured in ASKs grew 10.7%, driven mainly by increased capacity in Chile and Peru.

In the Brazilian domestic market, TAM reduced capacity by 9.2% during the quarter. Healthy traffic growth of 3.4% as well as improved market segmentation and revenue management practices resulted in strong load factor improvements. Load factors increased by 9.5 percentage points as compared to the first quarter 2012, reaching 77.7%. This led to a significant increase in revenue per ASK, as measured in Brazilian reais. Results in U.S. dollars were affected by a 13% depreciation of the Brazilian currency during the quarter as compared to the first quarter 2012.

During the first quarter 2013, the international passenger operations of LATAM Airlines Group continued to be impacted by increased capacity from international carriers flying to South America, especially from the United States, as well as by weak European markets. In addition, results were impacted by the fixed costs related to the three Boeing 787s in LAN’s fleet, which have been grounded since January 2013 in line with the FAA’s recommendation. Passenger capacity of LAN and TAM on international routes grew 12.3% during the first quarter as compared to the first quarter of 2012. Strong capacity expansion resulted in a decline of 4.5 points in load factors on international routes, negatively impacting revenues per ASK. LATAM continues to plan for a reduction in capacity growth on international routes for 2013, especially by reducing capacity on certain long haul routes from Brazil, such as the flights between Rio de Janeiro and Frankfurt, Paris and Orlando. We also plan to improve the product and efficiency on long haul routes from Brazil by replacing Airbus A330 aircraft with Boeing 767s, which have a Premium Business Class, including full flat (180° recline) seats.

Cargo revenues decreased 3.2% during first quarter 2013, driven by a slight decrease in cargo traffic and a 3.2% decrease in yields, reflecting the challenging scenario in Latin American cargo markets due to a decline in demand on routes to Latin America, especially Brazil, as well as increased competitive pressures from regional and international cargo carriers. This decline also reflects the impact of the 13% depreciation of the real on cargo revenues in the Brazilian domestic market. Capacity increased 3.8% during the quarter. As a consequence, load factors decreased from 58.3% to 56.1%.

 

LATAM Airlines Group S.A. 1Q13


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The increase in cargo capacity during the quarter is a result of the incorporation of two new Boeing 777 freighter during the second half of 2012 as well as additionally belly capacity, partially offset by capacity adjustments in the freighter fleet. On the other hand, the slight decrease in traffic during the quarter is a response to weaker cargo markets and increasing competition, partially offset by growth of the South American export market.

Nevertheless, the Company continued to successfully optimize the utilization of the bellies of its passenger aircraft to maximize synergies associated with the Company’s integrated passenger/cargo business model.

Other revenues increased 38.6%, amounting to US$77.2 million during the first quarter 2013. This increase was mainly explained by growth in revenues from aircraft leases, as well as an increase in tours and travel services.

Operating expenses decreased 0.6% compared to first quarter 2012, while unit costs per ASK-equivalent (including net financial expenses), decreased 4.5%. Excluding fuel, unit costs decreased 6.5% showing a significant increase in efficiencies within the Company. Changes in operating expenses were mainly due to the following:

 

   

Wages and benefits decreased 7.5% driven by the positive impact of a 13% average depreciation of the Brazilian real during the quarter, partially offset by higher average headcount.

 

   

Fuel costs increased 3.0% mainly driven by a 1.5% increase in the fuel gallons consumed, in line with the Company’s capacity increase, partially offset by a 0.9% decrease in the average fuel price per gallon. In addition, the Company recognized a US$9.5 million fuel hedge loss, compared to a US$18.3 million fuel hedge gain in the first quarter of 2012.

 

   

Commissions to agents decreased 21.8% due to a 22.9% decrease in average commissions, mainly explained by a reduction in average passenger commissions.

 

   

Depreciation and amortization increased 1.7% in line with the incorporation of 24 Airbus A320 family, 10 Boeing 767-300, 4 Boeing 777-300ER and 3 Boeing 787-800 passenger aircraft, and 2 Boeing 777 freighters between April 2012 and March 2013, partially offset by the sale of 5 Airbus A318 and 1 Boeing B767-200ER, and the 13% depreciation of the Brazilian currency during the quarter as compared to the first quarter 2012.

 

   

Other rental and landing fees increased 6.1% mainly due to increased handling costs and aeronautical rates.

 

   

Passenger service expenses increased 2.9% driven by a 6.7% increase in the number of passengers transported, partially offset by lower service cost at TAM.

 

   

Aircraft rentals increased 2.0% as a result of the incorporation of 8 Airbus A320-200s and 2 Airbus A340s, as well as an increase in the number of aircraft classified as operating leases, partially offset by the return 8 leased Airbus A320s, 3 Boeing 737-700s and 2Boeing 767-300s.

 

   

Maintenance expenses increased 4.0% due to a larger fleet, in line with the expansion in the Company’s operations during the quarter.

 

   

Other operating expenses decreased 3.6% due to lower sales costs, and costs related to reservation and IT systems.

Non-operating results

 

   

Interest income decreased from US$39.3 million in first quarter 2012 to US$29.8 million in first quarter 2013 mainly due to a lower cash balance during the quarter.

 

   

Interest expense increased from US$107.8 million in first quarter 2012 to US$110.2 million in same quarter 2013, mainly due to higher debt related to fleet financing.

 

   

Under Other income (expense), the Company recorded a US$37.5 million gain, mainly due to a foreign exchange gain resulting from the 1.5% appreciation of the Brazilian real between December 2012 and March 2013. This compares to a US$155.6 million gain in the first quarter 2012, which includes a foreign exchange gain of US$133.4 million recognized at TAM.

 

LATAM Airlines Group S.A. 1Q13


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FINANCING AND LIQUIDITY

Following are summary consolidated balance sheet indicators for LATAM Airlines Group as of December 31, 2012, in thousands of US dollars.

 

     As of March 31,      As of December 31,  
     2013      2012  

Total Assets

     20.861.376         20.792.717   
  

 

 

    

 

 

 

Total Liabilities

     15.509.198         15.623.901   

Total Equity

     5.352.178         5.168.816   
  

 

 

    

 

 

 

Total Liabilities and Shareholders equity

     20.861.376         20.792.717   

Net Debt

     

Current and long term portion of loans from financial institutions

     6.470.028         6.471.737   

Current and long term portion of obligations under capital leases

     3.184.022         3.087.820   

Other liabilities current and long term portion

     193.968         199.950   

Cash and cash equivalents

     -782.702         -1.120.335   
  

 

 

    

 

 

 

Total Net Debt

     9.065.316         8.639.172   
  

 

 

    

 

 

 

At the end of the first quarter 2013, LATAM reported US$782.7 million in cash and cash equivalents, including certain highly liquid investments accounted for as other current financial assets. In addition, as of March 31, 2013, the Company reported deposits with aircraft manufacturers (pre-delivery payments) of US$1,038.0 million, US$667.2 million of which were funded directly by LATAM. Furthermore, as of March 2013, LATAM Airlines Group had US$208 million in committed credit lines with Chilean and international banks.

As a result of the successful completion of the business combination with TAM, future fleet deliveries for LAN and TAM are to be incorporated at LATAM Airlines Group. As of March 31, 2013, LATAM had arranged ECA and EXIM supported facilities for future 2013 aircraft deliveries. These facilities have the option of issuing capital market bonds, in order to refinance or prefund the related debt. The first 12 Airbus narrow body aircraft and the first 6 Boeing wide body aircraft of this year are subject to these financing facilities. The remaining 2013 fleet will be financed through a combination of sale & leaseback transactions and commercial financing including senior and junior debt. The typical tenor for these financings is twelve years.

One of the objectives of Latam Airlines Group is to reduce the volatility in the financial results of TAM caused by external factors such as foreign exchange rate and fuel price fluctuations. In order to mitigate the impact of exchange rate variations as a result of the imbalance of TAM’s balance sheet accounts between assets denominated in Brazilian reais and liabilities denominated in US dollars, LATAM is evaluating alternatives to move the TAM aircraft and their related debt to the LATAM balance sheet, which has the US dollar as its functional currency. In addition, all aircrafts delivered after June 22, 2012 have been financed mostly by LATAM Airlines Group, irrespective of whether the aircraft is to be operated by TAM or by LAN. The volatility caused by exchange rate variations on the cash flows of TAM are expected to be partially mitigated over time as a result of the natural hedge provided by the diversified nature of the cash flows of LATAM Airlines Group.

 

LATAM Airlines Group S.A. 1Q13


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All hedging activities are carried out by LATAM Airlines Group. The Company aims to offset the impact of fuel price fluctuations through fuel surcharges in both passenger and cargo operations. LATAM has hedged approximately 67% of its estimated fuel consumption for the second quarter of 2013, and 26% of its average estimated fuel consumption for the third quarter 2013. The Company’s fuel hedging strategy consists of a combination of collars, swaps and call options for WTI, Brent and Jet Fuel.

LATAM’S Fleet Plan

During the first quarter 2013, LATAM received 4 Airbus A320, 1 Airbus A321 and 1 Boeing 767-300. The Company also returned 1 Airbus A320-200s and sold 2 Airbus A318 aircraft.

LATAM is in the process of adjusting its fleet plan in order to match its capacity expansion plans to the expected macroeconomic environment as well as the competitive scenarios on international and domestic Brazil passenger markets. The Company continues to evaluate alternatives to rationalize its fleet orders.

LATAM’s current estimated fleet plan and associated capital expenditures are shown in the table below.

 

     2013      2014      2015  

Passenger Aircraft

        

Dash 8-200

     5         5         5   

Dash 8-Q400

     0         0         0   

Boeing 737-700

     6         2         0   

Airbus A318-100

     0         0         0   

Airbus A319-100

     52         51         51   

Airbus A320-200

     159         163         172   

Airbus A321-200

     10         20         32   

Airbus A330-200

     16         10         10   

Boeing 767-300

     43         37         37   

Airbus A340-300/500

     5         0         0   

Boeing 777-300 ER

     10         12         12   

Boeing 787-800

     5         12         12   

Boeing 787-900

     0         0         4   
  

 

 

    

 

 

    

 

 

 

TOTAL

     311         312         335   

Cargo Aircraft

        

Boeing 777-200F

     4         4         4   

Boeing 767-300F

     11         11         11   
  

 

 

    

 

 

    

 

 

 

TOTAL

     15         15         15   

TOTAL FLEET

     326         327         350   
  

 

 

    

 

 

    

 

 

 

Total Fleet Capex (US$ millions)

     2.047         1.993         806   

 

LATAM Airlines Group S.A. 1Q13


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OUTLOOK

The Company expects passenger ASK growth for full year 2013 for LATAM Airlines Group to be approximately 2% to 4%. TAM’s domestic passenger ASKs in the Brazilian market are expected to decrease by approximately 5% to 7% during 2013.

Regarding cargo operations, LATAM expects cargo ATK growth between 2% and 4% for full year 2013, mainly driven by the incorporation of two new B777 freighters in September and October 2012, as well as additional belly capacity.

*****

About LATAM Airlines Group S.A

LATAM Airlines Group S.A. is the new name given to LAN Airlines S.A. as a result of its association with TAM S.A. LATAM Airlines Group S.A. now includes LAN Airlines and its affiliates in Peru, Argentina, Colombia and Ecuador, and LAN Cargo and its affiliates, as well as TAM S.A. and its subsidiaries TAM Linhas Aereas S.A., including its business units TAM Transportes Aereos del Mercosur S.A., TAM Airlines (Paraguay) and Multiplus S.A. This association creates one of the largest airline groups in the world in terms of network connections, providing passenger transport services to about 135 destinations in 22 countries and cargo services to about 144 destinations in 27 countries, with a fleet of 316 aircraft. In total, LATAM Airlines Group S.A. has more than 53,000 employees and its shares are traded in Santiago, as well as on the New York Stock Exchange, in the form of ADRs, and Sao Paulo Stock Exchange, in the form of BDRs.

Each airline will continue to operate under their current brands and identities. For any inquiry of LAN or TAM, please visit www.lan.com or www.tam.com.br, respectively. Further information at www.latamairlinesgroup.net

******

Note on Forward-Looking Statements

This report contains forward-looking statements. Such statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “LATAM,” “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 current LATAMs, estimates and projections, and, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. 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.

 

LATAM Airlines Group S.A. 1Q13


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LATAM Airlines Group S.A.

Consolidated Balance Sheet (in thousands of US Dollars)

 

     As of March 31, 2013     As of December 31, 2012  

Assets:

    

Cash, and cash equivalents

     456.710        650.263   

Other financial assets

     424.052        636.543   

Other non-financial assets

     202.892        169.824   

Trade and other accounts receivable

     1.541.432        1.411.714   

Accounts receivable from related entities

     1.133        15.187   

Inventories

     203.213        181.283   

Tax assets

     265.486        220.529   

Non-current assets and disposal groups held for sale

     11.986        47.655   

Total current assets

     3.106.904        3.332.998   

Property and equipment

     12.000.489        11.797.667   

Goodwill

     3.264.062        3.222.945   

Intangible assets other than goodwill

     1.871.828        1.848.593   

Other non-current assets

     618.093        590.514   

Total non-current assets

     17.754.472        17.459.719   
  

 

 

   

 

 

 

Total assets

     20.861.376        20.792.717   
  

 

 

   

 

 

 
Liabilities and shareholders’ equity:     

Other financial liabilities

     1.856.828        2.047.330   

Trade and other accounts payables

     1.608.712        1.652.955   

Tax liabilities

     115.944        115.481   

Other non-financial liabilities

     1.824.015        1.964.523   

Total current liabilities

     5.405.499        5.780.289   

Other financial liabilities

     7.948.954        7.698.857   

Accounts payable

     731.041        737.744   

Other provisions

     677.982        694.260   

Deferred tax liabilities

     621.646        593.064   

Employee benefits

     22.047        18.366   

Other non-financial liabilities

     102.029        101.321   

Total non-current liabilities

     10.103.699        9.843.612   
  

 

 

   

 

 

 

Total liabilities

     15.509.198        15.623.901   
  

 

 

   

 

 

 

Share capital

     1.605.369        1.501.018   

Retained earnings

     1.146.618        1.106.168   

Treasury Shares

     (203     (203

Other reserves

     2.579.504        2.535.100   

Equity attributable to the parent company’s equity holders

     5.331.288        5.142.083   

Minority interest

     20.890        26.733   
  

 

 

   

 

 

 

Total net equity

     5.352.178        5.168.816   
  

 

 

   

 

 

 

Total liabilities and equity

     20.861.376        20.792.717   
  

 

 

   

 

 

 

 

LATAM Airlines Group S.A. 1Q13


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LATAM Airlines Group S.A.

Consolidated Operational Statistics

 

     For the three month period ended
March 31
       
     2013     2012     % Change  

System

      

ASKs-equivalent (millions)

     55.219        53.128        3,9

RPKs-equivalent (millions)

     38.853        37.291        4,2

Overall Load Factor (based on ASK-equivalent)%

     70,4     70,2     0,2pp   

Break-Even Load Factor (based on ASK-equivalent)%

     69,6     70,7     -1,0pp   

Yield based on RPK-equivalent (US Cents)

     8,6        8,9        -3,2

Operating Revenues per ASK-equivalent (US Cents)

     6,0        6,2        -3,0

Costs per ASK-equivalent (US Cents)

     6,2        6,5        -4,5

Fuel Gallons Consumed (millions)

     330        325        1,5

Average Trip Length (thousands km)

     1,6        1,7        -0,6

Total Number of Employees

     53.717        52.122        3,1

Passenger

      

ASKs (millions)

     34.618        33.285        4,0

RPKs (millions)

     27.291        25.727        6,1

Passengers Transported (thousands)

     16.612        15.569        6,7

Load Factor (based on ASKs)%

     78,8     77,3     1,5pp   

Yield based on RPKs (US Cents)

     10,5        11,0        -4,3

Revenues per ASK (US cents)

     8,3        8,5        -2,4

Cargo

      

ATKs (millions)

     1.957        1.885        3,8

RTKs (millions)

     1.098        1.099        0,0

Tons Transported (thousands)

     330        271        21,7

Load Factor (based on ATKs)%

     56,1     58,3     -2,2pp   

Yield based on RTKs (US Cents)

     41,9        43,3        -3,2

Revenues per ATK (US Cents)

     23,5        25,2        -6,8

Note: ASK-equivalent is the sum of passenger ASKs and the quotient of cargo ATK and 0.095 (including LAN and TAM cargo operations) Note: Historical pro forma figures are presented for comparison purposes. Complete quarterly pro forma statistics for 2011 and 2012 can be found on the Company’s website at www.latamairlinesgroup.net.

 

LATAM Airlines Group S.A. 1Q13


LOGO

 

LATAM Airlines Group S.A.

Consolidated Fleet

 

     As of March 31, 2013  
     Off-Balance      On-Balance      Total  

Passenger Aircraft

        

Dash 8-200

     10         0         10   

Dash 8-Q 400

     4         0         4   

Boeing 737-700

     6         0         6   

Airbus A318-100

     0         5         5   

Airbus A319-100

     18         39         57   

Airbus A320-200

     64         80         144   

Airbus A321-200

     1         9         10   

Airbus A330-200

     2         18         20   

Boeing 767-300

     8         34         42   

Airbus A340-300/500

     3         4         7   

Boeing 777-300 ER

     0         8         8   

Boeing 787-800

     0         3         3   
  

 

 

    

 

 

    

 

 

 

TOTAL

     116         200         316   

Flota Carga

        

Boeing 777-200F

     2         2         4   

Boeing 767-300F

     4         8         12   
  

 

 

    

 

 

    

 

 

 

TOTAL

     6         10         16   

TOTAL FLEET

     122         210         332   
  

 

 

    

 

 

    

 

 

 

 

LATAM Airlines Group S.A. 1Q13


SIGNATURE

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: May 23, 2013

 

LATAM AIRLINES GROUP S.A.

By:  

/s/ Alejandro de la Fuente

  Name:  

Alejandro de la Fuente

  Title:   Chief Financial Officer