E2 or A220? LATAM says it sees an alternative for growth with smaller aircraft – Aviacionline

LATAM has officially addressed rumors about the possible acquisition of regional aircraft Embraer to complement its fleet, during the publication of the results of the second quarter of 2024, where the company reported a net profit of 146 million dollars.

At the press conference, the CEO of LATAM Brazil, Jerome Cadierwas questioned by our partner media AEROIN and other journalists on the negotiations surrounding the purchase of Embraer aircraft. Cadier confirmed that the company is considering various options to expand its capacity, due to restrictions on the availability of wide- and narrow-body aircraft.

“LATAM has the capacity, is generating cash, is having very good results and wants to continue growing. For that, you need an airplane,” Cadier said, noting that both Airbus as Boeing have struggled to meet deliveries, exacerbated by global engine-related problems.

“We have also outlined what growth could be with a smaller fleet, and this could come from Embraer, it could come from Airbus, we are constantly looking for alternatives to maintain this growth and maintain this good moment that LATAM is experiencing. There is no confirmation of any number of aircraft, what does exist is a company that is constantly looking for alternatives to maintain growth given the health and investment capacity that we have generated in recent years.”Cadier said, declining to give details of how many aircraft LATAM plans to have in its fleet.

Talks could include a direct request from the president Lulawho would have offered the support of the BNDES to finance the acquisition, similar to what is being done with the competitor Azul. Cadier stressed that LATAM is evaluating all options, including the possibility of incorporating aircraft from Embraer o Airbus.

Although LATAM has not confirmed the number of aircraft it could acquire, Cadier stressed the importance of continuing to add capacity to maintain the company’s growth, given the financial strength it has achieved in recent years after going through the reorganization process under Chapter 11.

LATAM had previously mentioned the possibility of acquiring aircraft Boeing 737 GOL, although negotiations with the competitor’s lessors did not prosper. Now, the company is considering the incorporation of a new fleet of smaller aircraft, with a capacity of between 100 and 140 seats, like the Embraer E195-E2which have been less affected by the problems with the Pratt & Whitney PW1000G engines.

Embraer, with fewer orders and more idle capacity compared to Airbus, could deliver aircraft in less than a year, similar to what happened in recent contracts with LOT Polish Airlines or Mexicana de Aviación, whose delivery will be in 2025.

Regarding investments, Cadier clarified that the $2 billion earmarked for LATAM expansion includes flexibility to reallocate resources according to needs, without necessarily increasing total investment.

With this approach, LATAM seeks to maintain its growth and consolidate its position in the market, exploring all available opportunities to overcome current challenges.