Latam now fears oversupply in Colombian domestic market

Latam Airlines Colombia CEO Santiago Álvarez said that although the first quarter saw a 19% increase in passenger transport, they expect an oversupply in domestic transport for the rest of the year due to competitive moves.

“During this semester we saw solid market growth, with a 19% increase in passenger transport and an average load factor of 79%. However, we see some signs of oversupply in the market due to various competitive moves, especially in the domestic business,” said Álvarez, according to the Portfolio.

He added that “we hope to end the year meeting the goal of growing 10% vs. 2023 and staying close to 30% in market share.”

Latam transported 5.8 million passengers during the first half of 2024. The national destinations to which it transported the most passengers were from Bogotá to Medellín, Cali and Cartagena.

As reported by REPORTUR.coLatam in its financial results for the second quarter of the year recorded a drop in profits compared to the same period last year, partly due to the increase in the price of aviation fuel by 16.7% compared to the same quarter of 2023. (Latam lowers profits due to rise in fuel prices).

Operating costs thus rose 14.6% in the quarter and although its quarterly sales rose 13.2% to USD 3,029.9 million due to the increase in the passenger business, its adjusted profit fell 26.3% to USD 104.8 million compared to the same period last year, according to Marketscreener.