LATAM Airlines secures US$505 million for fleet expansion

LATAM Airlines Group has secured approximately US$505 million in financing to expand and modernize its fleet, with deliveries scheduled for the second half of 2026. The transaction, led by BNP Paribas, includes the acquisition of 11 new aircraft: six Embraer E195-E2 models, four Airbus A321neo models, and one Airbus A320neo.

Notably, US$400 million of the total amount is structured as a sustainability-linked loan. This arrangement provides interest rate incentives tied to the airline's performance in reducing CO2 emissions intensity. The company aims to reduce emission intensity by 6% by 2030 compared to 2019 levels, with a long-term goal of reaching net-zero emissions by 2050.

The Embraer E195-E2 aircraft will be utilized to enhance domestic connectivity in Brazil, targeting smaller markets and new destinations. This deal marks the first time LATAM has used this specific financing structure for its Embraer fleet. The airline plans to continue its fleet renewal, aiming to have more than 50% of its aircraft consist of next-generation models by 2030.