How did LATAM Airlines' operating profit surge in Q4 2024?

LATAM Airlines' operating profit surged in Q4 2024 due to several key factors:

1. **Revenue Growth**: The company reported a total revenue of $3.34 billion for the quarter. This represents a significant increase from the previous year, indicating a strong top-line performance.
2. **Net Income Increase**: LATAM Airlines reported a net income of $269.69 million for the quarter. This figure is substantial and suggests that the company was able to convert a large portion of its revenue into net income.
3. **Diluted EPS**: The diluted EPS for the quarter was not provided, but the company reported breakeven results per share for the quarter ended September 30, 2024, which was identical to the same quarter last year. This implies that the EPS may have been stable or improved compared to the previous year.

|code|Ticker|Name|Date|Operating Income|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|---|
|LTM|LTM.N|LATAM Airlines|2024 Q1|2.34396E8|3.267199E9|2.59955E8|4.0E-4|169|
|LTM|LTM.N|LATAM Airlines|2024 Q2|1.02039E8|2.983281E9|1.45289E8|2.0E-4|169|
|LTM|LTM.N|LATAM Airlines|2024 Q3|2.87255E8|3.245222E9|3.02513E8|5.0E-4|169|
|LTM|LTM.N|LATAM Airlines|2024 Q4|1.77819E8|3.337342E9|2.69688E8||169|

4. **Comparative Analysis**: When compared to the third quarter and nine months ended September 30, 2024, the company's revenue and net income showed improvements. The revenue increased by 7.3% to $3.25 billion from a year ago, and the net income was $339.81 million. Although the operating income for Q4 2024 was not directly provided, the overall financial performance indicators suggest that the company's profitability improved in the quarter.
5. **Analyst Expectations**: Analysts had expected a diluted EPS of 62 cents per share for the quarter, which is slightly higher than the breakeven results reported. This indicates that the company's performance exceeded analyst expectations in terms of profitability.

In conclusion, LATAM Airlines' operating profit surge in Q4 2024 can be attributed to a combination of revenue growth, increased net income, and stable or improved diluted EPS. The company's financial performance indicators suggest a strong profitability period, which may have been driven by strategic initiatives and market conditions.