December 31, 2018

Latam Air eyes funding options

Latam Airlines Group continues to evaluate funding options for just over half of its 2019 fleet commitments, after deferring delivery of the carrier’s first five A321neos aircraft to 2020 and beyond.

The Santiago-based carrier needs financing for approximately $600 million of its $1.1 billion in commitments for 2019.

Latam is scheduled to take delivery of 11 A320neos, four A350-900s and two B-787-9s in 2019 under a revised fleet plan.

The airline has financing in place for roughly $500 million of 2019 commitments.

Latam has sale and leaseback financing in place for one A350 and both B-787-9 aircraft, scheduled for delivery in 2019.

The carrier financed the majority of its 2018 deliveries in the sale and leaseback market.

Latam previously accessed a variety of structures to finance aircraft, including commercial bank loans, secured capital market debt and Jolcos.