July 12, 2017 |
Latam Airlines Group slashed its operating costs by close to 7% in 2016, as it pushed through an aggressive plan to get its balance sheet in shape. The cost cuts combined with a strong pick-up in revenues, allowing the group to post its first annual profit last year.
In addition to addressing operating costs, though, the company has pursued a careful financing strategy. That has involved tapping a wide range of sources for funding and capital, as well as replacing older, more expensive financing.
Among the executive team working to turn around the airline’s fortune is chief financial officer Ramiro Alfonsín, who took on the job in July 2016. He joined from utility company Endesa, where he
As it overhauls its domestic service and cuts staff to reduce costs, Latam Airlines Group is also aggressively tapping a range of sources for capital and financing. The company’s chief financial officer discusses the strategy with LatinFinance