LATAM sees post-chapter 11 growth with a significant fleet expansion

Less than two years after emerging from Chapter 11 bankruptcy, LATAM Airlines Group is now operating at a higher capacity than it did before the pandemic.

The airline has set ambitious growth plans, with 125 new aircraft on order through 2030, primarily from Airbus and Boeing.

Executives shared their outlook during an investor day on October 22, highlighting a strong recovery and future expansion.

Of the 125 aircraft ordered, 80% will come from Airbus and Boeing, with a significant portion being narrowbody jets.

LATAM, however, is not in that position.

LATAM currently operates 341 aircraft, including 56 widebody, 263 narrowbody, and 22 cargo planes. A third of its fleet consists of unencumbered assets valued at over $1.2 billion.

The airline also upgraded its 2024 financial guidance, projecting adjusted EBITDAR between $3 billion and $3.15 billion, up from a previous estimate of $2.75 billion to $3.05 billion.

LATAM's available seat kilometers (ASKs) are expected to increase by 15% to 16% in 2024, with further growth forecasted for 2025 and 2026.

Looking ahead, LATAM is investing in its products and services.

The airline is retrofitting its Boeing 787 business class with new suites and aims to install Wi-Fi across its narrowbody fleet by mid-2025. LATAM has also introduced a flexible premium economy product, allowing it to adjust cabin configurations based on demand.