Latam Airlines Bundle
Who Owns Latam Airlines Company?
Understanding the ownership of a major airline is key to grasping its strategy and accountability. LATAM Airlines Group S.A. underwent significant ownership changes following its emergence from Chapter 11 bankruptcy in October 2022.
Formed by the merger of LAN Airlines and TAM Airlines in 2012, LATAM aimed to build a formidable Latin American airline. The company, with roots tracing back to 1929, is now the region's largest airline group.
As of December 31, 2024, LATAM Airlines Group reported total revenues of US$12,833.0 million and a net profit of US$977.4 million. The airline operates a fleet exceeding 300 aircraft. A comprehensive Latam Airlines Porter's Five Forces Analysis can further illuminate its competitive landscape.
Who Founded Latam Airlines?
LATAM Airlines Group S.A. emerged from the significant merger of two prominent South American carriers: Chile's LAN Airlines and Brazil's TAM Airlines. This union officially formed LATAM Airlines Group in June 2012, bringing together distinct legacies and operational strengths.
LAN Airlines FoundationLAN Airlines, originally Línea Aérea Nacional, was established in Chile on March 5, 1929. Its founder was Commander Arturo Merino Benítez.
TAM Airlines FoundationTAM Transportes Aéreos Meridionais was founded in Brazil in 1961. The Amaro family, notably Captain Rolim Amaro, played a crucial role in its expansion.
LAN PrivatizationDuring the 1990s, LAN underwent privatization. Following this, its 'current controllers and other shareholders' acquired a substantial stake of 98.7%.
Key Family InfluenceThe Cueto family, through Inversiones Costa Verde S.A., became a significant controlling shareholder in LAN. The Amaro family was central to TAM's growth, making it Brazil's largest airline by the early 2000s.
Merger AnnouncementThe intention to merge LAN and TAM was publicly announced in 2010. This strategic move aimed to create a dominant force in Latin American aviation.
Leadership TransitionFollowing the merger, Enrique Cueto, previously CEO of LAN, assumed the role of CEO for LATAM Airlines Group. Mauricio Rolim Amaro became the chairman. |
The merger agreement stipulated that TAM shareholders would be taken over by LAN Airlines. This transaction effectively combined the operational expertise and ownership structures of both founding airlines into the new LATAM Airlines Group entity. Understanding the Competitors Landscape of Latam Airlines provides context for this significant consolidation.
Early Ownership Dynamics
The early ownership of LATAM Airlines Group was shaped by the historical stakes held by the founding families of LAN and TAM. While precise initial equity splits are not detailed in recent public records, the privatization of LAN in the 1990s led to a significant concentration of ownership.
- The Cueto family, via Inversiones Costa Verde S.A., emerged as a key controlling shareholder in LAN.
- The Amaro family was instrumental in the development and leadership of TAM Airlines.
- The merger process involved TAM shareholders agreeing to the acquisition by LAN Airlines.
- Enrique Cueto and Mauricio Rolim Amaro transitioned into leadership roles within the newly formed LATAM Airlines Group.
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How Has Latam Airlines’s Ownership Changed Over Time?
The ownership structure of LATAM Airlines Group has seen significant shifts, most notably following its emergence from Chapter 11 bankruptcy protection in October 2022. A key development prior to this was Delta Air Lines' announced acquisition of a 20% stake in 2019, finalized in early 2020.
| Major Stakeholder | Ownership Percentage |
| Banco de Chile | 58% |
| Delta Air Lines, Inc. | 10% |
| Qatar Airways | 10% |
| Banco Santander Chile | 7% |
| LATAM Airlines Group S.A. (Treasury Shares) | Approximately 39.6% |
The restructuring process under Chapter 11, which gained approval for a capital increase of approximately US$10.3 billion in July 2022, was instrumental in reshaping the company's ownership. This capital infusion, comprising US$800 million in new payment shares and about US$9.5 billion in shares for convertible bond conversions, was designed to reduce the group's overall debt by 35% to around US$6.6 billion and bolster liquidity by approximately US$2.7 billion as of July 2022. These strategic financial maneuvers have significantly influenced the company's operational direction and governance, positioning it for continued growth.
Key Investors and Ownership Dynamics
Following its Chapter 11 restructuring, LATAM Airlines Group's ownership is now distributed among several key entities and institutional investors.
- Banco de Chile holds the largest stake at 58%.
- Delta Air Lines and Qatar Airways each possess a 10% ownership.
- Banco Santander Chile maintains a 7% share.
- LATAM Airlines Group S.A. itself holds approximately 39.6% of its own shares.
- Other significant institutional investors include Jefferies Financial Group Inc., which acquired a new position valued at approximately US$1.75 billion in Q4 2024, alongside Strategic Value Partners LLC, Olympus Peak Asset Management LP, Monarch Alternative Capital LP, Deutsche Bank AG, Farallon Capital Management LLC, and Zimmer Partners LP.
Understanding the Revenue Streams & Business Model of Latam Airlines provides further context to the strategic importance of these ownership changes. The company's corporate structure, with LATAM Airlines Group S.A. as the primary parent company, reflects a complex web of stakeholders, including significant minority shareholders, that influence its strategic decisions and future trajectory. The LATAM Airlines ownership history is marked by these pivotal moments, defining who owns LATAM Airlines today.
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Who Sits on Latam Airlines’s Board?
The current Board of Directors for LATAM Airlines Group S.A. was elected on April 25, 2024, and will serve a two-year term. This nine-member board guides the strategic direction of the airline group, with key individuals representing significant shareholder interests.
| Director | Position |
|---|---|
| Ignacio Cueto Plaza | Chairman |
| Bornah Moghbel | Vice-Chairman |
| Enrique Cueto Plaza | Director |
| Frederico Curado | Director |
| Antonio Gil Nievas | Director |
| Michael Neruda | Director |
| Sonia Villalobos | Director |
| Alexander Wilcox | Director |
| Álvaro Fabián | Director |
Ignacio Cueto Plaza has held the position of Chairman since 2017, and Enrique Cueto Plaza's directorship signifies the ongoing influence of the Cueto Group, a principal shareholder. The company's governance structure allows the Board to appoint a President and Vice President from its members, with decisions requiring an absolute majority of attending Directors. The voting power within LATAM Airlines Group generally follows a one-share-one-vote principle. However, the conversion of shares from convertible bonds issued during the Chapter 11 reorganization may impact future voting dynamics. The capital structure approved in July 2022 received strong backing, with 99.82% of attending shares voting in favor, representing 82.17% of total issued shares with voting rights, indicating broad consensus on the company's path forward, as detailed in the Brief History of Latam Airlines.
Board Influence and Voting Power
The composition of the Board of Directors reflects significant shareholder representation. Key decisions are made through majority votes, with a commitment to a one-share-one-vote system.
- The Board of Directors has nine members.
- Ignacio Cueto Plaza has been Chairman since 2017.
- The Cueto Group, a controlling shareholder, has representation on the board.
- Resolutions are passed by an absolute majority of attending Directors.
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What Recent Changes Have Shaped Latam Airlines’s Ownership Landscape?
LATAM Airlines Group has undergone significant ownership changes in recent years, particularly following its emergence from Chapter 11 bankruptcy in October 2022. A substantial capital increase of approximately US$10.3 billion in July 2022 was instrumental in reshaping its shareholding structure and strengthening its financial position.
| Shareholder | Approximate Ownership (as of 2024) |
| Delta Air Lines | 10% |
| Qatar Airways | 10% |
| Jefferies Financial Group Inc. | Significant new position (approx. US$1.75 billion in Q4 2024) |
| Strategic Value Partners LLC | Increased position |
| Olympus Peak Asset Management LP | Increased position |
| Monarch Alternative Capital LP | Increased position |
| Deutsche Bank AG | Increased position |
| Farallon Capital Management LLC | Increased position |
| Zimmer Partners LP | Increased position |
| Cueto Family (via Inversiones Costa Verde S.A.) | Key shareholder |
The ownership trends at LATAM Airlines Group indicate a robust presence of institutional investors, with several entities increasing their stakes. This shift is occurring as the airline focuses on financial stability and profitability, aiming for a net leverage target below 2.0x and maintaining liquidity between 21%-25% of its revenues for 2025. The company reported a net income of US$977.4 million for 2024, a notable increase from US$581.6 million in 2023. These developments, including a second share repurchase program approved in June 2025 and successful debt refinancing, highlight a proactive approach to capital management and a strategy geared towards sustained profitable growth.
Institutional Investor Activity
Major institutional investors like Jefferies Financial Group and Strategic Value Partners have been actively increasing their positions in LATAM Airlines. This suggests growing confidence in the company's post-reorganization strategy and future prospects.
Strategic Partnerships
Delta Air Lines and Qatar Airways maintain significant stakes, each holding 10% of the company. These strategic holdings underscore the importance of international partnerships for LATAM's global network and operational strategy.
Financial Health and Growth Strategy
LATAM's financial performance has improved, with net income rising to US$977.4 million in 2024. The company's focus on strengthening its balance sheet and achieving a below 2.0x adjusted net leverage ratio is key to its future growth and credit rating aspirations.
Ownership Structure Post-Bankruptcy
Emerging from Chapter 11 in October 2022, LATAM Airlines Group now has a reformulated shareholding structure. This includes a significant capital injection and a debt reduction of 35%, positioning the company for a new phase of operations and reflecting its updated Target Market of Latam Airlines.
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