LATAM Cargo revenues take a hit as southbound demand softens

Chile-headquartered LATAM Airlines Group cargo revenues took a hit in the three months ended June 30, against a backdrop of softening demand.

Cargo revenues decreased by 23.2% year on year in the second quarter to reach $355m. This was as capacity grew, and southbound demand to South America declined.

Nonetheless, the carrier noted that cargo revenues outperformed the equivalent pre-Covid figure by 32%. Yields were $0.40, 26.2% above yields in the same period of 2019 (but 26.9% down on the 2022 figure).

Capacity in available ton-km (ATK) totalled 1.8bn for the quarter, up 20.7% on the previous reporting period. Revenue ton-km (RTK) rose by 5% year on year to 889mn, while the load factor fell by 7.6 percentage points to 50.5%.

LATAM Cargo transported 225,000 tons of cargo during the three months, 2.5% more than in the second quarter of 2022.

LATAM Cargo announced two new cargo routes during the April–June period: Miami–Guayaquil and Miami–San Jose Dos Campos.

A highlight of the quarter was Mother’s Day, which saw the group transport 19,800 tons of flowers from Colombia and Ecuador to the US.

A statement said: “The cargo affiliates are the region’s leaders in the transportation of flowers thanks to the addition of a new converted cargo freighter.”

LATAM Cargo is expanding its cargo fleet by converting Boeing 767 passenger aircraft into freighters. The airline took delivery of its 18^th B767BCF in June.

LATAM Cargo’s Chapter 11 case was officially closed by the US Bankruptcy Court on June 29, 2023.

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