LATAM Airlines Group S.A. (NYSE:LTM) Company Profile
LATAM Airlines Group S.A. (NYSE:LTM), also known as LATAM Airlines Group (Latin American Airlines Group), was founded in 1929 and has 36,477 full-time employees. As the largest airline group in South America, it holds an important position in the global aviation industry, providing extensive passenger and cargo transportation services to multiple regions.
I. Company Introduction
LATAM Airlines Group was founded in 1929, with its headquarters in Santiago, Chile, and has 36,477 full-time employees. It has subsidiaries in Brazil, Colombia, Ecuador, Paraguay, and Peru. It is the largest airline group in South America and also has significant influence in the global aviation field, providing passenger and cargo transportation services.
Official Website: https://www.latamairlines.com/us/en
II. Main Business Segments
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Passenger Transportation Business: Provides passenger transportation services to 148 destinations in 26 countries. It has a vast route network, covering both internal routes within South America and long-haul intercontinental routes to North America, Europe, Africa, and Oceania, meeting the travel needs of different passengers.
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Cargo Transportation Business: Provides cargo transportation services to 166 destinations (18 of which are for pure cargo) in 33 countries (7 of which are for pure cargo). It operates a fleet including 20 dedicated cargo aircraft to support global cargo transportation.
III. Technological and Business Advantages
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Scale Advantage: The number of flights is more than twice that of other airline groups in South America. Based on the number of operating flights in the twelve months ending March 31, 2024, it is one of the top ten airline groups in the world and holds leading market shares in major aviation markets in South America, enjoying cost advantages and market influence brought by economies of scale.
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Route Network Advantage: It has the largest international network to and from South America, providing extensive intercontinental services. It can connect markets on different continents, meeting the diverse transportation needs of passengers and shippers and enhancing market competitiveness.
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Brand and Historical Advantage: Originating in 1929, after years of development and brand building, it has accumulated high popularity and customer loyalty in South America and globally. Its profound historical heritage contributes to its stable development in the industry.
IV. Development History
| Time | Key Events |
|---|---|
| 1929 | The Chilean government established LAN Airlines S.A., laying the foundation for the development of the group |
| August 13, 2010 | LAN Airlines of Chile and TAM Airlines of Brazil signed a non-binding merger agreement |
| January 19, 2011 | Signed a binding merger agreement |
| September 21, 2011 | The Chilean authorities approved the establishment of the LATAM agreement, but set 11 restrictions |
| December 14, 2011 | The Brazilian authorities approved the agreement and imposed similar restrictions |
| June 22, 2012 | Completed the signing of merger documents, and the shareholders of TAM Linhas Aéreas agreed to the acquisition by LAN Airlines |
| March 7, 2013 | Announced the selection of oneworld as its global airline alliance |
| August 2015 | Announced that all airlines would be fully renamed as LATAM |
| April 2016 | The first batch of aircraft was repainted with the new livery |
| December 31, 2017 | Became one of the largest airline groups in the world in terms of the number of route connections |
| September 26, 2019 | Delta Air Lines announced its plan to acquire a 20% stake in LATAM |
| January 1, 2020 | Delta Air Lines completed the acquisition of a 20% stake in LATAM |
| January 31, 2020 | LATAM announced its withdrawal from oneworld on May 1 |
| March 31, 2020 | Enrique Cueto, the group's CEO, stepped down, and Roberto Alvo took over |
| May 26, 2020 | Filed for Chapter 11 bankruptcy protection due to the impact of the pandemic |
| August 2020 | Announced the second-quarter results. The operating prospects improved, and subsidiaries distributed vaccines for free in 15 provinces of Peru. |
| 2022 | Completed the restructuring process according to Chapter 11. |
| July 18, 2024 | Submitted an IPO application to the U.S. Securities and Exchange Commission, planning to raise up to $533 million. |
| July 25, 2024 | Issued 19 million American Depositary Receipts at $24 per share, raising $456 million. |
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