LATAM Cargo Revenues Decline 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 18th B767BCF in June.

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