LATAM Airlines Group S.A.

About LATAM Airlines Group S.A.

Airlines Group is a South American aviation holding company that was established in 2010 and has its headquarters based in Santiago (Chile). The holding company came into being when two of South America’s biggest aviation firms — Brazilian TAM Airlines and Chilean LAN Airlines — joined forces. The holding company’s total fleet consists of over 318 aircraft and it employs more than 41,000 people.

Together, the companies run passenger flights on 143 routes across 26 countries (including intercontinental flights). Meanwhile, they also perform cargo flights on 150 routes spanning 29 countries. According to its end of year report, it carried more than 68.8 million passengers in 2018.

Ratings

The ratings agency S&P Global Ratings gives LATAM Airlines Group’s long-term international an issuer rating of “BB -” with stable outlook. Fitch Ratings gives it a credit rating of “B +” with positive outlook, while Moody’s rates it as “Ba3” with stable outlook.

LATAM Airlines Group Shares

The company’s stock reached its highest level at the tail end of 2010, when its shares were worth $31 a piece. Then, its share price began to fall until it reached a low of $4.69 in 2016. In early 2018, the company’s share price reached a new local maximum of $17.08. After that, it began to fall once again, eventually entering a wide trading range with half-yearly fluctuations up to 50% of its value. This fluctuation makes it an excellent investment opportunity, which could even tolerate moderate leverage.

Revenue of the company

In its 2018 annual report, the company stated that it had a 3% increase in its passenger flight business, which represents over 84% of its total turnover. As a result, 2018 saw the company’s turnover rise by 2% to $10.36 billion, while its net profit increased by 17% to reach $182 million, which is the most the company has ever made in one year.