LATAM Airlines Group S.A. Posts Strong June Performance, Completes $800 Million Refinancing

LATAM Airlines Group S.A. reported 10.7% YoY capacity growth for June 2025, driven by growth in the Brazilian market and international routes. Passenger traffic increased by 10.2% and cargo capacity improved by 5.2%. The company finalized an $800 million private offering of 7.625% Senior Secured Notes to redeem its 13.375% notes due 2029. LATAM also approved a second share repurchase program, authorizing the buyback of up to 3.4% of outstanding shares.

LATAM Airlines Group S.A. (NYSE:LTM) reported strong operational performance for June 2025, with a notable 10.7% year-over-year (YoY) capacity growth driven by robust growth in the Brazilian market and international routes. The airline's passenger traffic increased by 10.2%, reaching 7 million passengers, while cargo capacity improved by 5.2%, contributing to an impressive load factor of 83.8% [1].

In addition to its strong performance, LATAM Airlines Group S.A. has taken significant steps to enhance its capital structure. On July 8, 2025, the company finalized an $800 million private offering of 7.625% Senior Secured Notes due in 2031. The proceeds from this offering will be used to fully redeem its 13.375% notes due in 2029, thereby reducing the company's interest burden [1].

Further bolstering investor confidence, LATAM Airlines Group S.A. approved a second share repurchase program on June 26, 2025. This program authorizes the buyback of up to 3.4% of outstanding shares, equivalent to approximately 20.5 billion shares. The authorization remains effective for 18 months from the date of the Extraordinary Shareholders’ Meeting [1].

These strategic initiatives demonstrate LATAM Airlines Group S.A.'s commitment to strengthening its operational and financial position, positioning it for continued growth in the aviation sector.

References:
[1] https://au.finance.yahoo.com/news/latam-airlines-group-ltm-reports-113554711.html