LATAM Group Completes Financial Restructuring and Emerges in Strong Position

LATAM Chile aircraft approaching to land.
Oliver Holzbauer, CC BY-SA 2.0 via Wikimedia Commons

LONDON – LATAM group, the leading airline group in Latin America, has successfully completed its financial restructuring process in the United States. The airline voluntarily commenced proceedings in May 2020 to reduce its debt, access new sources of financing, and transform its business in response to the global pandemic.

Having maintained its leading position while achieving significant cost savings, LATAM has emerged from the reorganization as a more efficient group, with a modernized fleet, the most extensive network of connections in South America, and the continent’s largest loyalty program.

With over US$2.2 billion of liquidity, approximately US$3.6 billion less debt on its balance sheet (equivalent to a 35% debt reduction from the pre-filing period), and the support of key incumbent and new shareholders, LATAM is poised to reaffirm its leadership in Latin America and has positioned itself for long-term sustainability. 

LATAM CEO statement

Roberto Alvo, CEO of LATAM Airlines Group commented on the restructure, saying:

“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 unrivalled 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. 

Airline network

LATAM is the leading airline group in Latin America, with affiliates operating in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru.

The airline’s current international operations extend to: Latin America and to Europe, the United States and the Caribbean, Oceania and soon Africa, as LATAM Airlines Brazil will resume the Sao Paulo– Johannesburg route in mid-2023.

The group reached 144 destinations in 22 countries as of October, and it expects to close the year with a global operation footprint (measured in Available Seat Kilometers, ASKs) of more than 85% compared to 2019.

Between 2021 and 2022, the group added 10 new destinations in Brazil and plans to operate 36 new routes by 2023. 


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

Delta Joint Venture

Recently, LATAM group has implemented a joint venture with Delta Air Lines that will allow passengers to access more than 300 destinations between the U.S./Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru and Uruguay).

The joint venture agreement will enable the airlines to increase their level of cooperation in the aforementioned markets, resulting in a greater number of routes, more and better connections and the strengthening of frequent flyer program benefits. 


LATAM entered into agreements with Airbus to acquire by 2029 a total of 87 A320neo family aircraft, which are 20% more fuel efficient.

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