The LATAM Group completes the restructuring and emerges from the company on a solid footing

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SANTIAGO, Chile, Nov. 03, 2022 (GLOBE NEWSWIRE) — LATAM Group, the leading airline group in Latin America, announced today that it has successfully completed its financial restructuring process in the United States, which it scaled down in May In 2020, it had voluntarily started its debt, is finding new sources of funding, and is transforming its business in response to the global pandemic. Having maintained its leadership 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 largest loyalty program on the continent.

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

“Today is an important milestone for LATAM and our stakeholders. We are pleased to have completed a significant transformation and to have 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 people 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, more broadly, to contribute to the diverse countries we operate and their diverse ones interests,” said Roberto Alvo, CEO of LATAM Airlines Group.

The LATAM Group offers a unique value proposition:

  • Network: LATAM is the leading airline group in Latin America, with subsidiaries operating in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, as well as international routes within 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 in October and expects to end the year with a global operational presence (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 Freight: 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, and thus the Improve transportation options for their respective customers.
  • Delta Joint Venture: LATAM Group recently established a joint venture with Delta, allowing passengers access to more than 300 destinations between the US/Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru and Uruguay). The joint venture agreement will allow the airlines to intensify their cooperation in the above markets, resulting in more routes, more and better connections and a strengthening of the benefits of frequent flyer programs.
  • Fleet: LATAM has entered into agreements with Airbus to acquire a total of 87 A320neo Family aircraft, which are 20% more fuel efficient, by 2029.
  • Frequent Flyer Program: With 39 million members, LATAM Pass is the largest loyalty program in South America and the seventh largest worldwide.

LATAM Group’s track record, leadership position in Latin America and solid business plan enabled the completion of its restructuring with the support of new prominent shareholders including Sixth Street, Strategic Value Partners and Sculptor Capital Management, as well as its incumbent strategic shareholders Delta, Qatar and the Cueto family .

An Extraordinary General Meeting (AGM) will be held on November 15, 2022 to renew the Board of Directors of LATAM Airlines Group SA.

ABOUT LATAM AIRLINES GROUP SA

LATAM Airlines Group SA is the leading airline group in Latin America, with a presence in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, as well as international flights within Latin America and to Europe, the United States, the Caribbean and Oceania.

The group has a fleet of Boeing 767, 777, 787, Airbus A321, A320, A320neo and A319.

LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the cargo subsidiaries of the LATAM Group and have a combined fleet of 16 cargo aircraft, which will gradually increase to a total of 20 cargo aircraft by 2024. These cargo subsidiaries have access to the Group’s passenger aircraft and operate within the LATAM Group’s network and on exclusive international routes for cargo transportation. In addition, they offer a modern infrastructure and a variety of services and service options to meet the needs of their customers.

  • The LATAM Group completes its restructuring and emerges with a solid financial position and the most extensive network in South America


        
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