- Latam Airlines expects a growth in Available Seat Kilometers (ASK) between 7% to 9% in 2025.
- Revenue for 2025 is projected to be between $14 billion and $14.5 billion.
- The company anticipates adjusted Ebitda (Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring or Rent Costs) to be between $3.25 billion and $3.6 billion.
- It projects an adjusted Ebitdar margin of 23.5% to 25%.
- Latam Airlines forecasts liquidity to be above $3.9 billion.
- The net debt is expected to remain below $5.4 billion.
- The forecast for Net Debt/Adjusted Ebitdar ratio is up to 1.7 times.
- Fourth quarter results show a net income of $269.7 million.
- Revenue for the fourth quarter was $3.40 billion, marking a 4.4% year-over-year increase.
- Operating income for the quarter stood at $450.5 million with an operating margin of 13.3%.
- Revenue per ASK decreased by 10% year-over-year, registering a 7.0 cent rise.
- Adjusted Ebitdar for Q4 was $865.915 million, showing a 28.2% increase from the previous year.
- The adjusted Ebitdar margin for the fourth quarter improved to 25.5% from 20.8% in Q4 2023.
- Analyst ratings include 10 buys, 1 hold, and 0 sells.
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A look at Latam Airlines Group SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Latam Airlines Group SA shows promising long-term potential. The company scored high in Growth and Momentum, indicating a positive outlook in terms of expanding operations and market performance. With a focus on growth and strong momentum, Latam Airlines Group SA seems well-positioned to capitalize on opportunities in the airline industry.
While the company scored lower in Value, Dividend, and Resilience, the high marks in Growth and Momentum suggest that Latam Airlines Group SA may overcome any current challenges and continue to excel in the future. As an airline providing a range of services across various regions, including passenger and cargo services, Latam Airlines Group SA has established a strong presence in the market and is poised for continued growth and success.
Summary: LATAM Airlines Group S.A. is an airline that offers domestic and international flight services, serving destinations in Chile, South America, the Caribbean, Europe, North America, and the Pacific. The company operates passenger aircraft and cargo freighters, positioning itself as a key player in the aviation industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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