LATAM Cargo revenue up 12.2% in 2024

LATAM Airlines Group reported $1.6 billion in adjusted cargo revenue for 2024, an increase of 12.2% from 2023. “The group cargo operations delivered robust results during the second half of 2024, ending the year with improved load factors, better unit revenue and showcasing operational growth,” Chief Executive Roberto Alvo said on today’s fourth-quarter earnings call. [caption id="attachment_57146572" align="aligncenter" width="1920"] (Courtesy/LATAM Cargo)[/caption] The group’s adjusted operating revenue for 2024 increased 10.6% year over year to $13 billion, according to LATAM’s earnings report released today. LATAM also reported for 2024: Adjusted income before taxes of $920.7 million, up 21.9% YoY; Adjusted EBITDAR of $3.1 billion, up 22.7% YoY; Cargo capacity of 8.1 billion available tonne kilometers (ATK), up 12.5% YoY; 4.3 billion revenue tonne kilometers (RTK), up 16.9% YoY; 905,370 tonnes of cargo transported, up 5.6% YoY; Yield based on RTKs of 37 cents, down 4% YoY; and Revenues per ATK of 20 cents, down 0.2% YoY. The carrier group reported $469.9 million in adjusted cargo revenue for Q4, up 29.1% YoY. LATAM previously reported adjusted cargo revenue of $380.5 million in Q3 , up 15.7% YoY. The group reported total adjusted operating revenue for Q4 of $3.4 billion, up 4.4% YoY. LATAM also reported for Q4: Adjusted income before taxes of $190.6 million, down 2% YoY; Adjusted EBITDAR of $865.9 million, up 28.2% YoY; Cargo capacity of 2.1 billion ATKs, up 11.3% YoY; 1.2 billion RTKs, up 17% YoY; 244,940 tonnes of cargo transported, up 3.6% YoY; Yield based on RTKs of 39 cents, up 10.4% YoY; and Revenues per ATK of 22 cents, up 16.1% YoY. The rise in revenues per ATK was driven by stronger southbound demand from Europe and North America to South America, according to the earnings report. LATAM Cargo operates twenty-one 767-300Fs, having sold a 2000-vintage, production 767-300F with CF6 engines (30780) to aircraft trader Jetran in October. The freighter was taken on by Cargojet in December, making it Cargojet’s first production freighter. In August, LATAM Cargo added its final planned 767-300BCF conversion , a 2012-vintage unit (40799), completing its conversion order with Boeing. The carrier plans to retire one freighter in 2025 and another in 2026, according to the earnings report. Shares of LATAM Airlines Group ( NYSE: LTM ) were up 0.56 % from market open to $30.46 as of market close today. LATAM has a market capitalization of $9.06 billion. LATAM was relisted on the New York Stock Exchange on July 25, ending a four-year absence from the exchange after filing for Chapter 11 bankruptcy in 2020. Southwest’s Q4 cargo revenue up 2.3% Southwest Airlines saw no YoY change in cargo revenue, reporting $175 million for 2024. The carrier also reported total 2024 operating revenue of $27.5 billion, up 5.3% YoY. The carrier, which offers belly cargo capacity, also reported for 2024 income before taxes of $598 million, down 5.5% YoY. [caption id="attachment_14783" align="aligncenter" width="1920"] (Courtesy/Southwest Airlines)[/caption] Chief Executive Bob Jordan said on the Jan. 30 fourth-quarter earnings call that Southwest “will be relentless in pursuing cost takeout,” especially in pursuing efficiencies. “The fact is corporate overhead has grown at a faster rate than the rest of the airline as we staffed up for initiatives,” Jordan said, indicating that cuts will be made in corporate overhead. Southwest reported $45 million in Q4 cargo revenue, up 2.3% YoY. This is an improvement from Q3, when Southwest reported $43 million in cargo revenue , down 2.3% YoY. The carrier reported total Q4 operating revenue of $6.9 billion, up 1.6% YoY. Southwest also reported for Q4 income before taxes of $329 million, up from a loss of $286 million in Q4 2023. Shares of Southwest Airlines ( NYSE: LUV ) were down 1.86 % from market open to $30.68 as of market close today. Southwest has a market capitalization of $18.41 billion. Register now for Cargo Facts' essential regional events for industry stakeholders: Cargo Facts LATAM 2025 on Feb. 10-11 at the Pullman Sao Paulo Guarulhos Airport in Brazil; Cargo Facts Asia 2025 on March 24-26 at the W Shanghai in China; and Cargo Facts EMEA 2025 on May 6-8 at the Shangri-La Bosphorus in Turkey.

LATAM Cargo revenue up 12.2% in 2024

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