Summary
- LATAM Airlines’ shares are once again available for trading on the New York Stock Exchange (NYSE).
- The airline group’s shares were delisted in June 2020, as it had begun its Chapter 11 bankruptcy proceedings.
- LATAM Airlines was scheduled to release its Q2 results on August 7.
LATAM Airlines has begun trading shares on the New York Stock Exchange (NYSE) once again after the carrier group had exited its Chapter 11 bankruptcy process. During the first days of trading, its shares dipped 1.29% at the time of writing.
Relisting on the NYSE
On July 24, LATAM Airlines Group announced that it was relisting its American depositary shares (ADS) program on the NYSE, effective July 25.
The announcement followed the pricing of a public secondary offering by certain shareholders of the airline group, who sold 19 million ADSs, each representing 2,000 common shares of LATAM Group, for $24 per ADS.
Photo: Markus Mainka | Shutterstock
According to the airline group, the NYSE delisted its shares in June 2020 after the company had entered Chapter 11 bankruptcy proceedings. On June 13, 2023, LATAM Airlines announced that its US Supreme Court declined to review the last appeals filed against the group’s Chapter 11 case, effectively closing the airline group’s bankruptcy case.
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Relatively flat price growth
Meanwhile, NYSE data showed that since being relisted on the stock exchange, LATAM Airlines shares, trading under the ticker LTM, have lost 1.29% of its value since it began trading once again.
Photo: Matheus Obst | Shutterstock
On July 25, its shares opened at $24.85, closing at $24.90 and peaking at $25.43. On the following day, the group’s stock began trading at $25.23 and ended at $24.88. On July 29, LATAm Airlines group shares opened at $24.63.
As a result, its intraday market capitalization was $7.4 billion. In comparison, some of the largest airlines by market share have crossed the $20 billion mark, including IndiGo, Ryanair, and Delta Air Lines.
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The airline group saw a 26.7% increase in international passenger numbers year-on-year.
Q2 results due soon
On July 5, LATAM Airlines stated that its Q2 results would be published on August 7, with the company holding an earnings call on the following day.
“Adhering to good corporate governance practices, the Company will begin its quiet period on July 24, 2024, ending immediately after the release of the financial results on August 7, 2024.”
Nevertheless, during Q2, the airline welcomed 19.1 million passengers, or 11.7% more year-on-year (YoY). Its capacity, measured in available seat kilometers (ASK), grew by 16.2% YoY, while revenue passenger kilometers (RPK), measuring demand, rose 18.8%.
Photo: Philip Pilosian | Shutterstock
The group ended Q1 with an operating revenue of $3.3 billion and operating costs of $2.8 billion, resulting in an operating profit of $440.7 million. Its net income at the end of the three-month period was $258.2 million, an increase of 82.1% YoY.
LATAM Airlines also indicated that it expected to end the year with ASKs growing between 14% and 16%. As a result, the group assumed that it would end 2024 with revenues from $12.8 billion to $13.1 billion and an adjusted earnings before interest and taxes (EBIT) margin of between 11% and 12.5%.
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The successful quarter led to LATAM revising its financial outlook upward for 2024.