(Bloomberg) – The CEO of Latam Airlines Group wants to bring his company out of bankruptcy next year with an increasingly low carbon footprint and costs, which could help it grow within the travel market that continues to rebound from the coronavirus pandemic.
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Roberto Alvo said that Latin America’s largest airline is moving forward on a financing plan that it will present to a judge next month, which will put it on track to exit bankruptcy protection as early as the first half of 2022.
During the Chapter 11 process, which it entered last May, the company reorganized its fleet and slashed operating costs to compete with low-cost carriers. But Alvo, a two-decade veteran of the company who took over as CEO last April as the pandemic hit the airline industry the hardest, is emphasizing the airline’s role as a corporate citizen, including its promise to cut emissions. carbon.
Latam “will be financially much stronger than before, it will be very willing and able to take advantage of market opportunities to grow,” Alvo said in an interview in Bogotá on the sidelines of an airline conference. “However, the most important thing is that the countries where we operate consider the company as an asset to society.”
Carriers around the world, including Latam, have pledged to cut carbon emissions net by 2050, while the industry aligns itself with the Paris Agreement goal of limiting global warming. Airlines have few options to reach the goal, at least in the short term, as the production of more sustainable fuels remains limited.
To offset its CO2 production, Latam has invested in conservation and reforestation projects, and has added more fuel-efficient Airbus A320neo aircraft to its fleet. Additionally, it installed flight path software that will save more than 20,000 tons of fuel per year. Alvo said the investments will ultimately benefit the company’s bottom line, as passengers recognize Latam’s work on sustainability.
“It is perfectly compatible to have a profitable business while using your platform to help the societies where we operate,” he said.
Next year, demand in its five South American domestic markets will be at pre-pandemic levels, but international travel will take a bit longer, he said. Latam expects pre-covid profitability to return in 2024.
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