LATAM Airlines Group S.A

What it is

LATAM Airlines Group and its affiliates are the largest airline group in South America and one of the largest globally by passengers carried. It runs both passenger and cargo services through five domestic South American markets — Brazil, Chile, Colombia, Ecuador, and Peru — and flies internationally across the Americas, Europe, Oceania, and Africa.

The group carried over 87 million passengers in its most recent year, with capacity rising 8.2% and a strong seat-fill rate of 84.4%; it now flies a fleet of 371 aircraft across 160 destinations in 27 countries. LATAM Pass, its loyalty programme, is the largest airline rewards scheme in South America by membership — with 49 million members.

LAN Airlines, the Chilean predecessor, was originally established in 1929 by the Chilean government, and was later privatised. Chile’s LAN and Brazil’s TAM signed a binding merger agreement on 19 January 2011, closing it on 22 June 2012 to create LATAM Airlines Group.

Who owns it

The company filed for Chapter 11 bankruptcy in the United States on 26 May 2020 due to the impact of the COVID-19 pandemic on aviation, and emerged from those proceedings in 2022, coupled with a major restructuring. That restructuring reshaped who owns what: a considerable portion of the company is now held by creditors who swapped their debt for equity as part of the reorganisation plan.

Delta Air Lines and Qatar Airways each maintain roughly a 10% strategic stake. The Cueto family, through their holding company Costa Verde Aeronáutica S.A., also retains a notable stake — with Ignacio Cueto Plaza serving as Chairman of the Board, reflecting the family’s continued governance influence.

Institutional investors hold the bulk of the rest: EODHD data shows institutions account for about 86.6% of shares, with insiders at roughly 14.7%.

Who runs it

Roberto Alvo Milosawlewitsch has been Chief Executive Officer of LATAM Airlines Group since March 31, 2020, having steered the company through bankruptcy and back to record profits. The board elected at the April 25, 2024 shareholders’ meeting includes Enrique Cueto Plaza, Ignacio Cueto Plaza (Chairman), Frederico P.

Fleury Curado as independent director, and six others.

Ricardo Bottas Dourado joined as CFO in January 2025, bringing experience from CFO and CEO roles at several companies. His deep knowledge of investor relations and his ability to drive growth strategies were cited as the key factors in his appointment.

The money, in plain words

Revenue has grown strongly for three years running — from US$11.6bn in FY2023 to US$12.8bn in FY2024 to US$14.3bn in FY2025, a rise of roughly 10% each year (our calculation). It keeps about 11 cents of profit from every dollar of sales — a net profit margin of 11.2% — which is solid for an airline, a notoriously thin-margin industry.

The return on equity figure (117.6%, per EODHD) looks extraordinary, but it is a structural artefact: the bankruptcy restructuring wiped down the equity base to just US$1.35bn while leaving a large asset base of US$17.6bn in place, so even a moderate profit looks enormous relative to shareholders’ book value. The business holds US$2.15bn in cash, giving it meaningful liquidity to fund its fleet expansion.

Management’s 2026 guidance projects revenue of US$15.5–16.0bn, capacity growth of 8–10%, and an adjusted operating margin of 15–17%. The stock trades at a price-to-earnings ratio of 9.5×, which is modest for a company growing at double digits — the market appears to be pricing in continued execution risk and the still-high debt load from the restructuring.

What it is doing now

A key milestone in 2024 was the return of LATAM Airlines Group to the New York Stock Exchange in July, underscoring the company’s financial resilience and restored investor confidence. In 2024, LATAM also refinanced most of its existing non-fleet debt, significantly cutting its interest expense and strengthening cash flow generation.

A second share repurchase programme was approved in June 2025, reflecting a proactive approach to returning cash to shareholders as the balance sheet firms up. Capital expenditure for 2026 is planned at US$1.7bn net of financing, with 41 new aircraft deliveries expected.

What to watch

• Debt reduction: Management is targeting net leverage at or below 1.4× by end-2026, with net debt below US$6.2bn. Whether it hits that number will determine its credit rating trajectory and the cost of financing its large fleet order book.
• Capital returns: The company estimates US$1–1.6bn available for additional capital allocation after capital expenditure and minimum dividends. How that cash is split between buybacks, debt paydown, and a resumption of regular dividends is the central shareholder question.
• Ownership evolution: Creditor-to-equity conversions after restructuring created concentrated stakes held by distressed-debt funds whose planned exits could alter the company’s corporate structure over 2026.
• Delta partnership: Delta and LATAM have been seeking approval for a trans-American Joint Venture Agreement that would combine their route networks between North and South America — a deal that, if it gains full regulatory clearance, would significantly expand LATAM’s reach and revenue base.

This is news, not investment advice.