LATAM is borrowing $700 million to bring 11 new planes into its fleet as it aims to have more than 410 aircraft by the end of 2026.
The loan is for one Airbus A320neo, four A321neo and six Embraer E195-E2, with deliveries scheduled for the second half of this year.
“This transaction combines three elements that are relevant to LATAM’s financial strategy: it diversifies our sources of financing, supports the renewal and growth of our fleet, and links part of its terms to our sustainability performance,” said Andrés del Valle, Corporate Finance Director of LATAM Airlines Group.
“In addition, it allows us to finance the incorporation of Embraer aircraft through this structure for the first time, while maintaining access to competitive long term terms in international markets.”
This agreement adds to the fleet renewal plan that the LATAM group is implementing throughout 2026.
During the first half of the year, it incorporated 13 next-generation aircraft and expects to receive an additional 28 before year-end, bringing the total number of aircraft added during the year to more than 40.
By 2030, LATAM expects to incorporate up to 130 additional aircraft, meaning that more than 50% of its fleet will consist of next-generation aircraft.
The latest loan includes interest-rate incentives linked to LATAM’s emissions performance.
This means that, as the group makes progress in reducing the amount of CO₂ emissions per unit transported – its emissions intensity – it may access better financial terms.
These incentives are aligned with the LATAM group’s sustainability targets: reducing its emissions intensity by 6% by 2030 versus 2019 and advancing toward its goal of achieving net-zero emissions by 2050.
