LATAM Airlines Group S.A. is a Chilean airline holding company headquartered in Santiago, Chile.[1][2] It is considered the largest airline company in Latin America[5][6] with subsidiaries in Brazil, Colombia, Ecuador, Paraguay and Peru.[7][8][9][10][11] The company filed for Chapter 11 bankruptcy in the United States on 26 May 2020, due to economic problems attributed to the impact of the COVID-19 pandemic on aviation.[12] Although LATAM Airlines' headquarters are located in Chile, the carrier is an American depositary receipt and traded on both the Santiago Stock Exchange and New York Stock Exchange at the time of bankruptcy. The company's stock ticker (LTMAQ) was delisted from the NYSE and later moved to the unregulated OTC Markets Pink on 12 June 2020.
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| Company type | Sociedad Anónima |
|---|---|
| BCS: LTM | |
| ISIN | CL0000000423  |
| Industry | Aviation |
| Founded | 22 June 2012 |
| Headquarters | Santiago, Chile[1][2] |
Key people | Ignacio Cueto[3] (Chairman) Roberto Alvo (CEO) |
| Products | Passenger flights Cargo activity Aircraft maintenance |
| Services | Airline Services |
| Revenue |  $9.895 billion (2018)[4] |
| $758 million (2018)[4] | |
| $213 million (2018)[4] | |
| Total assets |  $17.566 billion (2018)[4] |
| Owner |
|
Number of employees | 43,000 (2017) |
| Subsidiaries | |
| Website | www |
History
Merger
Chile's LAN-Chile and Brazil's TAM Linhas Aéreas signed a non-binding agreement to merge on 13 August 2010, followed by a binding agreement on 19 January 2011,[13][14] and papers to close the merger on 22 June 2012, with TAM Linhas Aéreas' shareholders agreeing to the takeover by LAN Airlines.[15] Enrique Cueto, former CEO of LAN, became the CEO of LATAM; LATAM now has been reworked into being a portmanteau word of "Latin" and "America".[16] Mauricio Rolim Amaro, formerly vice-chairman of TAM, became LATAM chairman.[17]
Government approvals
The agreement to establish LATAM was approved by Chilean authorities on 21 September 2011, with 11 restrictions. These included transferring four landing slots at São Paulo–Guarulhos International Airport to competitors interested in operating flights to Santiago de Chile's Arturo Merino Benítez International Airport, renouncing membership to either the Oneworld or Star Alliance airline alliance, restricting the increase in capacity on flights between Brazil and Chile, and opening code-share possibilities and fidelity program membership to interested competitors.[18] On 14 December 2011, Brazilian authorities approved the agreement, imposing similar restrictions as Chilean authorities: LATAM would have to choose an alliance by August 2012 and frequencies between São Paulo and Santiago de Chile would have to be reduced. At the time, TAM had two pairs of slots while LAN had four. LAN had to relinquish two pairs to competitors interested in using them.[19] On 7 March 2013, LATAM announced its final decision to choose Oneworld as its global airline alliance. As a result, TAM left Star Alliance during the second quarter of 2014 to join Oneworld.[20]
Rebranding
In August 2015, it was announced that all LATAM Airlines Group airlines would fully rebrand as LATAM, with one unified livery to be applied on all aircraft by 2018.[21][22] The rebranding included all aspects of the business, such as staff uniforms and airport check in facilities.[23] The first of the aircraft were repainted (or delivered new) in the new LATAM livery in April 2016.[24]
2019–2020: Delta stake, Oneworld departure, and Enrique Cueto steps down
On 26 September 2019, Delta Air Lines announced its plans to buy 20% of LATAM for $1.9 billion, to expand Delta's access to the Latin American market. Additionally, Delta agreed to pay LATAM's exit fee from Oneworld and to take delivery of all Airbus A350 XWB aircraft that LATAM had on order.[25][26][27] On 1 January 2020, it was reported that Delta Air Lines' acquisition of the 20% stake in the LATAM group was completed.[28] Group CEO Enrique Cueto stepped down on 31 March 2020, and was succeeded by Roberto Alvo, the group's then-current Chief Commercial Officer.[29] On 31 January 2020, LATAM announced that it would leave Oneworld three months later on 1 May.[30]
On 26 May 2020, LATAM filed for Chapter 11 bankruptcy in the United States due to economic problems attributed to the impact of the COVID-19 pandemic on aviation,[12] although they are currently operating and have been negotiating terms.[31] In August, the company announced its second-quarter results, projecting improved operational prospects. To assist with the COVID-19 pandemic in Peru, the company announced that its subsidiary LATAM Perú would help distribute vaccines to fifteen provinces in Peru for free.[32]
Corporate affairs
Business trends
The key trends for the LATAM Group are (as of the financial year ending 31 December):
| 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (US$ m) | 9,722 | 13,266 | 12,471 | 10,125 | 9,527 | 10,163 | 10,368 | 10,430 | 4,334 | 5,111 | 9,516 | 11,789 | 12,400 - 12,800 |
| Net profit (US$ m) | 24.3 | −281 | −109 | −219 | 69.2 | 155 | 181 | 190 | −4,545 | −4,647 | 1,339 | 582 | |
| Number of employees | 53,599 | 52,997 | 53,072 | 50,413 | 45,916 | 43,095 | 41,170 | 41,729 | 28,396 | 29,114 | 32,507 | 35,568 | |
| Number of passengers (m) | 64.9 | 66.6 | 67.8 | 67.8 | 66.9 | 67.0 | 68.8 | 74.2 | 28.3 | 40.2 | 62.0 | 74.0 | |
| Passenger load factor (%) | 78.6 | 80.8 | 83.4 | 83.1 | 84.2 | 84.8 | 83.1 | 83.5 | 76.5 | 74.4 | 81.3 | 83.1 | |
| Number of served countries[a] | 25 | 25 | 24 | 26 | 26 | 21 | 18 | 22 | 26 | 27 | |||
| destinations | 140 | 145 | 155 | 150 | 145 | 140 | 135 | 125 | 100 | 110 | 120 | 130 | 162 |
| Fleet size | 327 | 339 | 327 | 331 | 332 | 315 | 320 | 342 | 300 | 310 | 310 | 333 | |
| Cargo carried (000 tons) | 1,200 | 1,171 | 1,102 | 1,009 | 944 | 896 | 921 | 903 | 785 | 801 | 901 | 946 | |
| References | [33][34] | [34] | [35] | [36] | [37] | [38] | [39] | [40] | [41] | [42] | [43] | [44] |
Ownership
As of 31 December 2023[update], the company's major shareholders are:[45]
| Shareholder | Interest |
|---|---|
 Sixth Street Partners | 27.91% |
| Strategic Value Partners | 16.02% |
| Delta Air Lines | 10.05% |
 Qatar Airways | 10.03% |
 Cueto Group | 5.03% |
| Other investors | 30.96% |
| 100% |
Operations
As of 31 December 2017, LATAM Airlines Group is one of the largest airline groups in the world in terms of network connections, with its subsidiaries operating a combined fleet of 315 aircraft providing passenger transport services to 137 destinations in 24 countries; and 18 aircraft providing cargo services to 144 destinations in 29 countries.[46]
LATAM's main hubs are Santiago de Chile's Arturo Merino Benítez International Airport; Jorge Chávez International Airport in Lima; São Paulo–Guarulhos International Airport; and El Dorado International Airport in Bogotá. The company is exploring the creation of a new hub in northeastern Brazil with the objective of expanding operations between Europe and South America.[47] Bogotá is the hub for the Caribbean.[48]
LATAM Airlines Argentina has announced, that it will cease domestic cargo operations for an indefinite period.[49]
Subsidiary airlines
Current
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The airlines majority- and minority-owned by LATAM Airlines Group through the primary airlines' various subsidiaries are as follows:
| Country | Airline |
|---|---|
| Brazil | LATAM Brasil |
| LATAM Cargo Brasil | |
| Chile | LATAM Airlines |
| LATAM Cargo Chile | |
| LATAM Chile | |
| Colombia | LATAM Colombia |
| LATAM Cargo Colombia | |
| Ecuador | LATAM Ecuador |
| Paraguay | LATAM Paraguay |
| Peru | LATAM Perú |
Former
| Country | Airline |
|---|---|
| Argentina | LATAM Argentina (Ceased operations in 2020) |
| Mexico | LATAM Cargo Mexico (Sold off in 2018) |
| United States | Florida West International Airways (Sold off in 2016) |
Fleet
As of January 2024, LATAM Airlines Group owns and operates the following aircraft:[50]
| Aircraft | In service | Orders | Passengers | Notes | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| J | W | Y | Total | |||||||
| Airbus A319-100 | 40 | — | — | — | 144 | 144 | ||||
| Airbus A320-200 | 135 | — | — | — | 188 | 188 | The fleet of the A320s have both CFM56 engines and IAE V2500 engines. This happened due to the merger between TAM, which used the IAE, and LAN, who used the CFM. | |||
| 180 | 180 | |||||||||
| 174 | 174 | |||||||||
| 168 | 168 | |||||||||
| Airbus A320neo | 20 | 18 | — | — | 180 | 180 | ||||
| 174 | 174 | |||||||||
| Airbus A321-200 | 49 | — | — | — | 220 | 220 | ||||
| 224 | 224 | |||||||||
| Airbus A321neo | 1 | 62 | TBA | Deliveries commenced in October 2023.[51] | ||||||
| Airbus A321XLR | — | 13 | TBA | Deliveries start in 2025.[52] | ||||||
| Boeing 767-300ER | 13 | — | 30 | — | 191 | 221 | Some to be converted to freighter.[citation needed] | |||
| 20 | 211 | 231 | ||||||||
| 213 | 233 | |||||||||
| 218 | 238 | |||||||||
| Boeing 777-300ER | 10 | — | 38 | 50 | 322 | 410 | ||||
| Boeing 787-8 | 10 | — | 30 | — | 217 | 247 | ||||
| Boeing 787-9 | 25 | 11 | 30 | — | 283 | 313 | Acquired new from Boeing but has also acquired used aircraft including from Norwegian UK[53] | |||
| 57 | 216 | 303 | ||||||||
| LATAM Cargo Fleet | ||||||||||
| Boeing 767-300F | 9 | — | Cargo | |||||||
| Boeing 767-300ER/BCF | 9 | 2 | ||||||||
| Total | 321 | 106 | ||||||||
