LATAM_Airlines_Group

LATAM Airlines Group

LATAM Airlines Group

Latin American airline holding company

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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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

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[lower-alpha 1] 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, the company's major shareholders are:[45]

More information Shareholder, Interest ...

Operations

A LATAM Chile Boeing 787-9 Dreamliner at John F. Kennedy International Airport in July 2016.

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

A LATAM Brasil Airbus A320neo at Salgado Filho International Airport in 2016.
A LATAM Brasil Airbus A350-900 at Toulouse Blagnac International Airport in 2016.

The airlines majority- and minority-owned by LATAM Airlines Group through the primary airlines' various subsidiaries are as follows:

More information Country, Airline ...

Former

More information Country, Airline ...

Fleet

As of January 2024, LATAM Airlines Group owns and operates the following aircraft:[50]

More information Aircraft, In service ...

See also

Notes

  1. passenger operations

References

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    "Latam Airlines Group SA Corporate Information". Bloomberg L.P. 27 October 2018.
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    LATAM Airlines Group, Consolidated Financial Statements January 1, 2018 – December 31, 2018, retrieved 1 January 2020
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    Webber, Jude; Lemer, Jeremy (15 August 2010). "LatAm airlines join consolidation trend". Financial Times. Retrieved 16 August 2010.
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    "LATAM becomes largest airline driven to bankruptcy by coronavirus". Reuters. 26 May 2020. Retrieved 26 May 2020.
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    Laing, Fabian Cambero, Aislinn (17 September 2020). "LATAM Airlines proposes new $2.45 billion financing deal to U.S. bankruptcy court". Reuters. Retrieved 21 November 2020.{{cite news}}: CS1 maint: multiple names: authors list (link)
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    "Ownership Structure". LATAM Airlines Group SA. 31 December 2023. Retrieved 25 April 2024.
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