Fleet Financing

LATAM secures additional funding of $ 750 million

During a new round of funding (tranche B) of its Chapter 11 saga, LATAM obtained a loan of up to US $ 750 million. As the company reports in a press release, this capital injection was obtained at rates and conditions more favorable than those obtained for the A and C tranches. This will allow the airline to improve its cost of access to the money.

After a series of investor offers, LATAM’s board of directors unanimously approved on September 24 the proposal presented by a group formed by Oaktree Capital Management, Apollo Management Holdings and others. In this regard, Ramiro Alfonsín, CFO of the LATAM Airlines group, said “we have received several offers from investors which will allow us to access better financing conditions”.

See also: LATAM Airlines Receives $ 5 Billion Funding Offers, Requests Extension of Reorganization Plan Date

As a result, the funding received by the company is as follows

  • US $ 1.3 billion Tranche A
  • Tranche B, up to US $ 750 million
  • US $ 1,150 million of Tranche C

Tranche B is still open, so LATAM could incorporate new capital in the future if the need arises.

LATAM operations

The airline is currently operating at around 50% of its pre-pandemic capacity and plans to revert to pre-pandemic figures only in 2024.

According to SimpleFlying, as of September, LATAM operated approximately 970 daily flights, between domestic and international routes. LATAM Cargo, the company’s star player since the start of the pandemic, has made 990 flights using its fleet of cargo planes.

Colombia is the best performing country, with 80% of the pre-pandemic capacity, thanks to a strong rebound in the domestic market. It is followed by Brazil (55% of its pre-pandemic capacity), LATAM Peru at 51%, LATAM Chile (50%), and LATAM Ecuador, with 31%.

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