- Increased Ebitdar Forecast: Latam Airlines has revised its full-year adjusted Ebitdar forecast upward to a range of $3 billion to $3.15 billion, from the previous range of $2.75 billion to $3.05 billion.
- Higher Capacity Growth: The airline now expects Available Seat Kilometers (ASK) growth to be between 15% and 16%, an increase from the previous projection of 14% to 16%.
- Lower Cost Efficiency: The Cost per Available Seat Kilometer excluding fuel (CASK ex-fuel) is anticipated to be between 4.2 cents and 4.3 cents, improved from the earlier expected range of 4.3 cents to 4.5 cents.
- Debt Management: Latam Airlines projects a Net Debt to Adjusted Ebitdar ratio of 1.6 to 1.7 times, refining its earlier range of 1.6 to 1.8 times.
- Market Confidence: Analysts show strong support for Latam Airlines with 9 buy ratings, and no holds or sells.
A look at Latam Airlines Group SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 a promising long-term outlook. With a high Growth score of 5, the company is expected to excel in expanding its operations and increasing its market presence over time. In addition, a respectable Momentum score of 3 suggests that Latam Airlines Group SA is moving in the right direction towards achieving its strategic goals.
Although the Value, Dividend, and Resilience scores are moderate, indicating areas that may need improvement, the strong emphasis on Growth and the positive Momentum could drive Latam Airlines Group SA towards future success and sustainable growth in the aviation industry.
Summary: LATAM Airlines Group S.A. is an airline that provides both domestic and international flight services. The Company serves various destinations across Chile, South America, the Caribbean, Europe, North America, and the Pacific, offering both passenger and cargo services through a fleet of passenger aircraft and cargo freighters.
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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