LATAM secures US$505 million financing, including its largest sustainability-linked transaction, to support fleet growth and renewal

London, August 25, 2026. – LATAM Airlines Group has secured approximately US$505 million to finance the incorporation of 11 aircraft into its fleet, with deliveries scheduled for the second half of 2026. Of the total transaction, US$400 million corresponds to sustainability-linked financing. The transaction includes one Airbus A320neo, four Airbus A321neo, and six Embraer E195-E2 aircraft, under a long-term loan structure led by BNP Paribas.

The agreement represents the first transaction of this type for LATAM’s Embraer fleet and enables the group to access competitive long-term financing in a context of market volatility and high fuel costs.

“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. 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” said Andrés del Valle, Corporate Finance Director of LATAM Airlines Group.

The 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 emitted 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.

This is the company’s second transaction of this type. In December 2024, LATAM closed its first Sustainability-Linked Loan, a US$300 million revolving credit facility secured by engines.

The transaction reflects the LATAM group’s commitment to increasingly linking its business objectives with its sustainability goals. Through these types of instruments, the company incorporates incentives to advance toward more efficient operations, accompanying the renewal of its fleet with concrete emissions-reduction targets.

More than 410 aircraft by the end of 2026

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, exceeding 40 annual incorporations during the year. As a result, the group expects to close 2026 with more than 410 aircraft.

In the coming months, the Embraer E195-E2 will be incorporated for the first time into Brazil's domestic network, while the company’s first Airbus A321XLR will enter service in 2027.

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. According to their manufacturers, these models reduce CO₂ emissions by between 20% and 25% compared with previous generations, contributing to progress towards the goal of achieving net-zero emissions by 2050.