LATAM Group has successfully completed their voluntary Chapter 11 restructuring process in the U.S. which commenced in May 2020 to reduce debt, access new capital and transform their business. The company currently has over $2.2 billion in liquidity.
On Thursday (November 3, 2022), LATAM Airlines Group announced that they have successfully completed and emerged from the U.S. Chapter 11 restructuring process which commenced in May 2020. The process has allowed the Group to reduce debt, access new sources of financing and transform their business. LATAM has now emerged as a more efficient Group with a modernized fleet, the most extensive network in South America and the continent’s largest loyalty program. The Group now has over $2.2 billion in liquidity and has reduced their balance sheet debt by approximately $3.6 billion. LATAM's restructuring was made possible due to the support of new prominent shareholders, including Sixth Street, Strategic Value Partners and Sculptor Capital Management, as well as existing strategic shareholders, Delta Airlines, Qatar Airways and the Cueto Family.
In Thursday’s announcement, LATAM Airlines Group’s CEO, Roberto Alvo, said,
“Today marks an important milestone for LATAM and our stakeholders. We are pleased that we have completed a significant transformation and emerged from our financial restructuring process with a strengthened financial position and a renewed commitment to operational excellence. As a group with a dynamic team of 30,000 employees and an unrivaled connectivity network, we look forward to continuing to offer passengers the best alternative for travel to, from, and within South America and to contribute in the broader sense to the various countries in which we operate and their diverse interests.”
During October 2022, LATAM offered service to 144 destinations in 22 countries, including the addition of 10 new domestic destinations in Brazil which were added between 2021 and 2022. In 2023, the Group plans on introducing 36 new routes. LATAM Cargo will increase their Boeing 767-300F Freighter fleet, which numbered 11 in 2019, to up to 20 in 2024. The Group has also entered into agreements with Airbus to acquire 87 fuel-efficient Airbus A320neo Family aircraft by 2029.
LATAM Airlines Group S.A. is the leading airline group in Latin America, offering service in five domestic markets (Brazil, Chile, Colombia, Ecuador and Peru) as well as international service within Latin America and to Europe, Oceania, the United States and the Caribbean. The airline will also resume service between São Paulo and Johannesburg in mid-2023. The Group operates a fleet of Boeing 767, 777, and 787s, as well as Airbus A319, A320, A320neo, A321 aircraft. LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the LATAM Airlines freight subsidiaries. In addition to passenger aircraft belly hold cargo capacity, the Group operates a fleet of 15 dedicated freighters, which will be expanded to between 19 and 20 by 2024.
Source: LATAM Airlines Group