LATAM Cargo revenue climbs 10% thanks to seasonal peaks

LATAM Airlines Group reported $418.6 million in cargo revenue for the second quarter, an increase of 10.2% year over year. Cargo revenue was buoyed by “notable performance during seasonal peaks such as Mother’s Day, particularly in Colombia and Ecuador,” Chief Financial Officer Ricardo Bottas said on LATAM’s July 29 earnings call. [caption id="attachment_57290318" align="aligncenter" width="1920"] (Courtesy/LATAM)[/caption] LATAM cargo affiliates transported more than 25,000 tonnes of flowers for Mother’s Day , the earnings report said. Cargo revenue was mainly driven by southbound demand from Europe and North America to South America, the report said. “Cargo has not been affected by the Liberation Day announcements in early April,” Chief Executive Roberto Alvo said on the call. “We haven’t seen any significant impacts.” The carrier group also reported $3.3 billion in total operating revenue, up 8.2% YoY, and $283 million in adjusted net income, up 170.7% YoY. The group also reported in Q2: Adjusted operating income of $422.8 million, up 54.4% YoY; Adjusted EBITDAR of $850.1 million, up 37.4% YoY; 2.1 billion available cargo tonne kilometers (CTK), up 3.9% YoY; 1.1 billion revenue CTKs, up 5.7% YoY; Load factor of 54%, up 0.9 percentage points YoY; 256,000 tonnes of cargo transported, up 3.4% YoY; Yield based on revenue CTKs of 38 cents, up 4.2% YoY; and Revenue per available CTK of 20 cents, up 6% YoY. LATAM Cargo operates twenty 767-300Fs, having sold a 1999-vintage 767-300F with CF6 engines (29881) to CAM in March and a 2000-vintage 767-300F with CF6 engines (30780) to aircraft trader Jetran in October 2024. ATSG leasing subsidiary CAM is negotiating with a customer to lease unit 29881, ATSG told Cargo Facts in March. Unit 30780 was taken on by Cargojet in December, making it Cargojet’s first production freighter. LATAM plans to sell one more 767-300F in 2026, the company said in its 2024 earnings report in January. In August, LATAM Cargo added its final planned 767-300BCF conversion , a 2012-vintage unit (40799), completing its conversion order with Boeing. That aircraft has not yet entered service. Shares of LATAM Airlines Group ( NYSE: LTM ) were up 2.32% from market open to $42.39 as of market close on July 29. LATAM has a market capitalization of $12.7 billion. LATAM was relisted on the New York Stock Exchange on July 25, 2024, ending a four-year absence from the exchange after filing for Chapter 11 bankruptcy in 2020. Air Canada Cargo revenue up 10% Air Canada reported CA$253 million ($182.9 million) in Q2 cargo revenue, up 10% YoY. Cargo revenues increased “as shippers continue to adjust to the global trade landscape,” Mark Galardo , chief commercial officer and cargo president, said on Air Canada’s July 29 earnings call. “We anticipate a more normal environment for the rest of the year.” [caption id="attachment_57290456" align="aligncenter" width="1920"] (Courtesy/Air Canada Cargo)[/caption] Air Canada’s cargo operations peaked in Q2, but Galardo does not expect that level of operation to continue through the second half of the year. “I think you'll see a bit of normalization in Q3 and Q4,” he said. “A lot of [Q2’s increase] was driven by strength particularly in Asia, [where] uncertainty led to a lot of yield growth. “I don't think we'll see the same relative strength into Q3 and Q4, but overall, the cargo revenue picture stays relatively stable,” Galardo said. The carrier reported $134.5 million in Q2 net income, down 54.6% YoY. Air Canada also reported in Q2: Operating revenue of $4.1 billion, up 2% YoY; Operating income of $302.8 million, down 10.3% YoY; Diluted loss per share of 37 cents, down 51% YoY; and Adjusted EBITDA of $658.4 million, down 0.5% YoY. Air Canada operates six 767-300BDSFs. The carrier added its eighth 767F (30851) in April 2024 after conversion with IAI in Tel Aviv (TLV). However, in Q2 2024, Air Canada removed its two production 767-300Fs (67024 and 67023) from service and, as Cargo Facts reported in December, has leased them to Ethiopian Airlines . The carrier does not plan more changes to its freighter fleet through 2026, according to the earnings report. Shares of Air Canada ( OTCMKTS: ACDVF ) were down 4.49% from market open to $14.05 as of market close on July 29. Air Canada has a market capitalization of $4.2 billion. Singapore Airlines cargo revenue down 1.9% Singapore Airlines Group reported a 1.9% YoY decline in cargo revenue to SGD$530.5 million ($409.2 million) for the first quarter of fiscal 2025/2026, which ended June 30. Cargo load factor fell 0.8 percentage point to 56.9%, while the company’s cargo load growth of 2.8% lagged a 4.2% capacity expansion, Singapore Airlines said in its July 28 earnings report. [caption id="attachment_57144464" align="aligncenter" width="500"] (Courtesy/IBS Software)[/caption] The carrier group reported $3.7 billion in revenue, up 1.5% YoY. The group also reported in its Q1: Net profit of $143.4 million, down 58.8% YoY; Operating profit of $312.3 million, down 13.8% YoY; and 289,400 tonnes of cargo carried, up 5.7% YoY. Singapore Airlines operates seven 747-400Fs, as well as five 777Fs leased from DHL Aviation. The carrier aims to phase out its 747-400Fs and has placed orders with Airbus for seven A350Fs. Shares of Singapore Airlines Group ( OTCMKTS: SINGY ) were down 0.59% from market open to $11.70 as of market close on July 28. The carrier has a market capitalization of $16.2 billion. Editor’s note: All amounts have been converted to U.S. dollars. Cargo Facts Symposium, the quintessential event for stakeholders and key leaders in the global freighter and air cargo industries, will take place Oct. 22-24 at the Grand Hyatt in Nashville . Learn more and register today to take advantage of the early-bird rate.

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