Latam, another airline that, like Avianca, is tightening

With the report of Latam Airlines on its consolidated financial results for the quarter ended September 30, 2018, the company decided to reduce the purchase of fleet of $ 2,300 million between 2018 and 2021, while it planned to receive 25 new aircraft. who has now canceled 10 aircraft.

In the third quarter of 2018, the Company reported operating income of $ 175.0 million, a decrease of $ 69.1 million from the same period in 2017.

Operating margin reached 7.0%, a 2.2% reduction from the third quarter of 2017. This decrease is mainly due to the $ 185.0 million increase in costs. fuel, the airline announced.

"In recent years, the company has not made as much effort to adapt its plan.It is important that we have a much better investment trajectory with the macroeconomic context.The third quarter was very difficult for the whole of society, we limit costs, which allows us to be competitive in all segments, and we are better positioned to compete, "said Ramiro Alfonsin, vice president of general finance. at Latam Airlines, according to information provided by Ámbito.

For this year, Latam had planned to receive 8 planes, but they will only have six. In 2018, fleet commitments were reduced by $ 402 million, which corresponds to operating leases.

By 2021, the airline is expected to reach 25 new aircraft, but it will be reduced to 15 aircraft.

Avianca also adhered to the savings plan. Roberto Held, vice president of finance at Avianca, the millionaire plan to save the airline until 2020. Among the other measures being considered are the purchase of 50 aircraft at 13 (Discounts to Avianca: the purchase of 50 devices will be reduced to 13).

This measure will help the company save its funding requirements by $ 500 million between 2019 and 2022. Held Held said that the fleet of Avianca was young, with an average of 6.7 years of life. In addition, the company will extend the lease agreements of the current aircraft and will reduce ASK's growth rates, ie the number of seats available per kilometer traveled to 6.3 % in 2018-2022.

With these plans, the airline will allocate a portion of the savings to overhaul, maintenance and technology.

"The proposed reduction and reorganization of the current (aircraft) order would reduce debt requirements and improve liquidity optimization by more than $ 1,000 million over the medium term," Held said. at the time, as noted Las Dos Orillas based on information expected by Valora Analitik.