LATAM Group leaves the Chapter process 11

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The LATAM group, the main group of airlines in Latin America, announced successfully exited its process of Chapter 11 on USA.

He entered this process voluntarily in May of 2020 to reduce your debt, access new sources of financing and transform your business in response to the global pandemic. Having maintained its leadership position and achieved significant cost savings, LATAM has emerged from the reorganization as a more efficient group, with a modern fleet, the most extensive network of connections in South America and the largest loyalty program on the continent.

With more than US$ 2.200 millions of liquidity, approximately $3.6 billion less debt on its balance sheet (equivalent to a reduction in 35% of the debt prior to entering the process), and the support of current and new major shareholders, LATAM is ready to reaffirm its leadership in Latin America and has a sustainable future.

«Hoy se cumple un hito muy importante para LATAM. We are pleased that we have completed a significant transformation and have emerged from our 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 a network of unmatched connectivity, We hope to continue offering passengers the best alternative to travel to, from and within South America and contribute to the needs of the different countries in which we operate”, Robert Alvo said, CEO de LATAM Airlines Group.

This is how LATAM leaves the Chapter 11

Red: LATAM is the leading airline group in Latin America, with subsidiaries operating in five domestic markets in the region: Peru, Ecuador, Brazil, Chile and Colombia, and international operations within Latin America and towards Europe, United States and the Caribbean, Oceania and soon to Africa as LATAM Airlines Brazil will resume the Sao Paulo route – Johannesburg in the middle of 2023.

As of October of this month, the group reached 144 destinations in 22 countries, hoping to close the year with a global operation (measured in available seat-kilometres – ASK) greater than 85% regarding the 2019. Between 2021 and 2022, the group added 10 new destinations in Brazil and plans to operate 36 new routes for 2023.

LATAM Cargo: LATAM Cargo and the cargo subsidiaries are in the midst of an expansion plan that will allow them to increase their respective fleets from a current total of 11 Boeing 767-300F aircraft in 2019 to a total 20 767-300F aircraft in 2024 which will improve transportation options for your customers.

Joint Venture con Delta: Recently, the LATAM group has implemented a Joint Venture with Delta that will allow passengers to access more than 300 destinations between USA/ Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru and Uruguay). The agreement will make it easier for airlines to increase their level of cooperation in the mentioned markets, which will result in a greater number of routes, more and better connections and strengthening the benefits of frequent flyer programs.

Fleet: LATAM closed agreements with Airbus to acquire up to 2029 a total of 87 family aircraft A320neo, which are 20% more fuel efficient.

Frequent Flyer Program: with 39 million members, LATAM Pass is the largest loyalty program in South America and the seventh largest worldwide.

The trajectory of the LATAM group, its leadership in Latin America and its robust business plan made it possible to complete its restructuring with the support of its new and prominent Sixth Street shareholders, Strategic Value Partners and Sculptor Capital Management and their incumbent shareholders, Delta, Qatar and the Cueto family.

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