Latam Airlines plans to return to the capital markets of the United States after repaying almost US$ 4,000 million (3,730 million euros) of debt after a restructuring that lasted several years.
Specifically, the airline intends to relist its American Depository Receipts (ADRs) on the New York Stock Exchange this year after they were suspended during bankruptcy. This was explained by the financial director, Ramiro Alfonsín, during a video interview, in which he also anticipated the return of the company to the international bond markets next year.
According to Alfonsín, the company has “a good opportunity” for the market to better recognize and understand the new Latam Airlines and has announced that it is likely that in 2024 the issue of refinancing will begin to be addressed.
FUTURE PLANS
The company, which operates 310 planes and has the largest share in at least four South American markets, was one of three big Latin American airlines to restructure in US bankruptcy courts when the COVID-19 pandemic halted air travel in 2020.
Looking to 2023, Latam Airlines has indicated that it expects to achieve 20% annual growth in passenger and freight operations. In turn, it hopes to increase its turnover to US$ 11,500 million (10,850 million euros).
In domestic markets, Alfonsín said Latam is eyeing Colombia after low-cost airline Viva Air ceased operations last month following a failed integration attempt with Avianca.
It also sees opportunities to increase the stake from the roughly 37% it has in Brazil. The airlines Gol and Azul, its rivals in the country, avoided filing for Chapter 11 during the pandemic, but are now working on agreements to shore up their finances.
In Alfonsín’s opinion, some companies had to file for Chapter 11 and restructure, while others tried to weather the storm, and now “the consequences are being seen.”
