LATAM Airlines Group

LATAM's Chilean lineage begins with LAN Chile, founded in 1929 as Chile's state aviation service under Arturo Merino Benítez — a Chilean Air Force brigadier who became the father of Chilean aviation. LAN was privatised in the 1980s and acquired by the Cueto family in 1989, who transformed it from a modest national carrier into an aggressive regional expansion machine. Meanwhile, Brazil's TAM Linhas Aéreas was rebuilt from a helicopter service by Captain Rolim Amaro in the 1970s into Brazil's largest carrier by passengers. The two airlines competed across South America for decades before concluding that consolidation made more strategic sense than competition.

LAN Airlines of Chile and TAM Linhas Aéreas of Brazil signed their merger agreement in 2010, completing it in June 2012 to form LATAM Airlines Group — the largest airline holding company in Latin America. The combined entity controlled dominant market positions in Chile, Brazil, Colombia, Ecuador, and Peru, with significant international routes to North America, Europe, and Oceania. Qatar Airways acquired a 10% strategic stake in 2016. Delta Air Lines invested $1.9 billion for a 20% stake in 2019, bringing a joint venture covering North and South American connections.

LATAM filed for Chapter 11 bankruptcy protection in the United States on May 26, 2020 — the largest airline bankruptcy filing during the COVID-19 pandemic. Latin American governments provided almost no state aid to their airlines, in contrast to the billions distributed to European and US carriers. LATAM had to negotiate its restructuring entirely through the US courts, restructuring approximately $3.6 billion in liabilities and securing $2.45 billion in debtor-in-possession financing from its own shareholders and creditors. The process was contentious: creditors objected to equity conversion options that favoured existing shareholders, forcing multiple rounds of negotiation.

LATAM officially emerged from Chapter 11 on November 3, 2022, having restructured with more than $2.2 billion in liquidity and $3.6 billion less debt. The ownership structure had transformed: distressed-debt funds that had provided DIP financing held significant equity stakes; Delta retained approximately 10%; the Cueto family maintained a minority influence. The airline had rationalised its fleet, moved over 90% of passenger interactions to self-service digital channels, and cut unit costs to levels that made it structurally competitive. LATAM was voted the most punctual airline group in the world by the Official Airline Guide during the restructuring.

LATAM reported $977 million in net income for 2024 — its most profitable year ever — driven by cost discipline, premium traffic growth, and cargo expansion. Revenue grew substantially, with cargo revenue benefiting from supply chain disruptions and strong e-commerce demand from Asia. The airline relisted its ADRs on the NYSE in July 2024, reestablishing visibility to US investors. Net debt had been reduced to 1.7 times EBITDA, with $3.53 billion in liquidity. Q1 2025 net income rose a further 38% to $355 million year-on-year. Latin America's aviation market growth of 6-8% annually gave LATAM the fastest-growing large-market tailwind of any major airline group.