LATAM Airlines has reported a net profit of $2.538 billion for the fourth quarter, with the figures reflecting all financial renegotiations resulting from the airline’s bankruptcy proceedings.
The quarterly profit of the top airline in South America compares to a deficit of $2.75 billion during the same three-month period one year prior.
But, the company intends to utilize its 2022 gains to offset accrued losses, according to a securities filing made on Thursday evening.
“Profits for the year ended December 31, 2022 must be used primarily to absorb such losses,” the report noted.
The airline, which was formed by the 2012 merger of Chile’s LAN and Brazil’s TAM, has operations in Chile, Brazil, Colombia, and Peru.
LATAM, based in Santiago, reported a 38% increase in quarterly revenue to $2.75 billion compared to the same period last year.
Chief Financial Officer Ramiro Alfonsin informed reporters that “all renegotiations since we left Chapter 11” bankruptcy protection are now recorded as profits in the income statement for the quarter.
According to the airline, the company’s operating result excluding the restructuring process hit $139 million for the quarter.