LATAM AIRLINES GROUP S.A. Files 20-F for Fiscal Year Ended December 31, 2023

Ticker: LTM · Form: 20-F · Filed: Feb 22, 2024 · CIK: 1047716

Latam Airlines Group S.A. 20-F Filing Summary
FieldDetail
CompanyLatam Airlines Group S.A. (LTM)
Form Type20-F
Filed DateFeb 22, 2024
Risk Levellow
Pages15
Reading Time18 min
Key Dollar Amounts$, $877.12, $1.00, $932.26, $4.8413
Sentimentneutral

Sentiment: neutral

Topics: LATAM Airlines, 20-F Filing, Annual Report, Air Transportation, Financials

TL;DR

<b>LATAM AIRLINES GROUP S.A. has submitted its 2023 annual report on Form 20-F.</b>

AI Summary

LATAM AIRLINES GROUP S.A. (LTM) filed a Foreign Annual Report (20-F) with the SEC on February 22, 2024. LATAM AIRLINES GROUP S.A. filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located in Santiago, Chile. LATAM AIRLINES GROUP S.A. was formerly known as Lan Airlines SA and Lan Chile SA. The filing is made under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking LATAM AIRLINES GROUP S.A., this filing contains several important signals. This 20-F filing provides a comprehensive overview of LATAM AIRLINES GROUP S.A.'s financial performance and business operations for the fiscal year 2023, crucial for investors assessing the company's standing. As a significant player in the Latin American air transportation sector, this report offers insights into the company's strategic direction and financial health, impacting market perceptions and investment decisions.

Risk Assessment

Risk Level: low — LATAM AIRLINES GROUP S.A. shows low risk based on this filing. The risk is low as this is a standard annual filing providing historical financial information and business overview, with no immediate new material events indicated.

Analyst Insight

Review the detailed financial statements and business descriptions within the 20-F to understand LATAM AIRLINES GROUP S.A.'s performance and strategic positioning in the air transportation industry.

Key Numbers

Key Players & Entities

FAQ

When did LATAM AIRLINES GROUP S.A. file this 20-F?

LATAM AIRLINES GROUP S.A. filed this Foreign Annual Report (20-F) with the SEC on February 22, 2024.

What is a 20-F filing?

A 20-F is a annual report for foreign private issuers, equivalent to a 10-K but following international reporting standards. This particular 20-F was filed by LATAM AIRLINES GROUP S.A. (LTM).

Where can I read the original 20-F filing from LATAM AIRLINES GROUP S.A.?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by LATAM AIRLINES GROUP S.A..

What are the key takeaways from LATAM AIRLINES GROUP S.A.'s 20-F?

LATAM AIRLINES GROUP S.A. filed this 20-F on February 22, 2024. Key takeaways: LATAM AIRLINES GROUP S.A. filed its annual 20-F report for the fiscal year ending December 31, 2023.. The filing covers the period from January 1, 2023, to December 31, 2023.. The company's principal executive offices are located in Santiago, Chile..

Is LATAM AIRLINES GROUP S.A. a risky investment based on this filing?

Based on this 20-F, LATAM AIRLINES GROUP S.A. presents a relatively low-risk profile. The risk is low as this is a standard annual filing providing historical financial information and business overview, with no immediate new material events indicated.

What should investors do after reading LATAM AIRLINES GROUP S.A.'s 20-F?

Review the detailed financial statements and business descriptions within the 20-F to understand LATAM AIRLINES GROUP S.A.'s performance and strategic positioning in the air transportation industry. The overall sentiment from this filing is neutral.

How does LATAM AIRLINES GROUP S.A. compare to its industry peers?

LATAM AIRLINES GROUP S.A. operates in the air transportation industry, a sector characterized by global connectivity, fluctuating fuel prices, and regulatory oversight.

Are there regulatory concerns for LATAM AIRLINES GROUP S.A.?

The company's operations are subject to aviation regulations in the countries it serves, including safety standards, air traffic control, and international flight agreements.

Industry Context

LATAM AIRLINES GROUP S.A. operates in the air transportation industry, a sector characterized by global connectivity, fluctuating fuel prices, and regulatory oversight.

Regulatory Implications

The company's operations are subject to aviation regulations in the countries it serves, including safety standards, air traffic control, and international flight agreements.

What Investors Should Do

  1. Analyze the financial statements for revenue trends, profitability, and debt levels.
  2. Review the business overview section for strategic initiatives and market positioning.
  3. Examine any disclosed risk factors and management's discussion of these risks.

Key Dates

Year-Over-Year Comparison

This filing represents the annual 20-F report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Filing Stats: 4,490 words · 18 min read · ~15 pages · Grade level 11.1 · Accepted 2024-02-22 16:47:49

Key Financial Figures

Filing Documents

o Item 18 o

Item 17 o Item 18 o If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes x No o TABLE OF CONTENTS PRESENTATION OF INFORMATION v

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS vii GLOSSARY OF TERMS ix PART I 1 ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 1 ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE 1 ITEM 3 KEY INFORMATION 1 A. Reserved 1 B. Capitalization and Indebtedness 1 C. Reasons for the Offer and Use of Proceeds 1 D.

Risk Factors

Risk Factors 1 ITEM 4 INFORMATION ON THE COMPANY 22 A. History and Development of the Company 22 B. Business Overview 23 C. Organizational Structure 54 D. Property, Plant and Equipment 55 ITEM 4A. UNRESOLVED STAFF COMMENTS 56 ITEM 5 OPERATING AND FINANCIAL REVIEW AND PROSPECTS 56 A. Operating Results 56 B. Liquidity and Capital Resources 69 C. Research and Development, Patents and Licenses, etc. 73 D. Trend Information 75 E. Critical Accounting Estimates 75 ITEM 6 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 75 A. Directors and Senior Management 75 B. Compensation 80 i C. Board Practices 80 D. Employees 82 E. Share Ownership 84 F. Disclosure of a registrant's action to recover erroneously awarded compensation 84 ITEM 7 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 84 A. Major Shareholders 85 B. Related Party Transactions 87 C. Interests of experts and counsel 87 ITEM 8 FINANCIAL INFORMATION 87 A. Consolidated Financial Statements and Other Financial Information 87 B. Significant Changes 94 ITEM 9 THE OFFER AND LISTING 94 A. Offer and Listing Details 94 B. Plan of Distribution 95 C. Markets 95 D. Selling Shareholders 95 E.

Dilution

Dilution 95 F. Expenses of the Issue 95 ITEM 10 ADDITIONAL INFORMATION 96 A. Share Capital 96 B. Memorandum and Articles of Association 96 C. Material Contracts 105 D. Exchange Controls 116 E. Taxation 119 F. Dividends and Paying Agents 128 G. 128 ii H. Documents on Display 128 I. Subsidiary Information 128 J. Annual Report to Security Holders 128 ITEM 11

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS 129 ITEM 12

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 133 A. Debt Securities 133 B. Warrants and Rights 133 C. Other Securities 133 D. American Depositary Shares 133 PART II 135 ITEM 13 DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 135 ITEM 14 MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 135 ITEM 15

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 135 A. Disclosure Controls and Procedures 135 B. Management's Annual Report on Internal Control Over Financial Reporting 135 C. Attestation report of the registered public accounting firm. 135 D. Changes in internal controls over financial reporting. 136 ITEM 16 RESERVED 136 ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT 136 ITEM 16B. CODE OF ETHICS 136 ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES 136 ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 137 ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS 137 ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT 137 ITEM 16G. CORPORATE GOVERNANCE 137 ITEM 16H. MINE SAFETY DISCLOSURE 137 iii ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 137 ITEM 16K. CYBERSECURITY MANAGEMENT AND STRATEGY 137 ITEM 17

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 139 ITEM 18

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 139 ITEM 19 EXHIBITS 140 iv PRESENTATION OF INFORMATION Throughout this annual report on Form 20-F, we make numerous references to "LATAM." Unless the context otherwise requires, references to "LATAM Airlines Group" are to LATAM Airlines Group S.A., the unconsolidated operating entity, and references to "LATAM," "we," "us," "our," the "group" or the "Company" are to LATAM Airlines Group S.A. and its consolidated affiliates including: Transporte Areo S.A. ("LATAM Airlines Chile"), LATAM Airlines Per S.A. (f/k/a LAN Per S.A, "LATAM Airlines Peru"), LATAM-Airlines Ecuador S.A. (f/k/a Aerolane Lneas Areas Nacionales del Ecuador S.A., "LATAM Airlines Ecuador"), LAN Argentina S.A. ("LATAM Airlines Argentina," previously Aero 2000 S.A.), Aerovas de Integracin Regional S.A. ("LATAM Airlines Colombia"), TAM S.A. ("TAM"), TAM Linhas Areas S.A. ("LATAM Airlines Brazil"), Transporte Areos del Mercosur S.A. ("LATAM Paraguay"), LAN Cargo S.A. ("LATAM Cargo") and its two regional affiliates: Linea Aerea Carguera de Colombia S.A. ("LANCO" or "LATAM Cargo Colombia") in Colombia and Aerolinhas Brasileiras S.A. ("ABSA" or LATAM Cargo Brazil") in Brazil. Other references to "LATAM", as the context requires, are to the LATAM brand which was launched in 2016 and brings together, under one internationally recognized name, all of the affiliate brands such as LATAM Airlines Chile, LATAM Airlines Peru, LATAM Airlines Argentina, LATAM Airlines Colombia, LATAM Airlines Ecuador S.A. and LATAM Airlines Brazil. LATAM Airlines Argentina continues to be a consolidated affiliate, however, on June 17, 2020, it announced the indefinite cessation of its passenger and cargo operations. References to "LAN" are to LAN Airlines S.A., currently known as LATAM Airlines Group S.A., and its consolidated affiliates, in connection with circumstances and facts occurring prior to the completion date of the merger between LAN Airlines S.A. and TAM S.A. See "Item 4. Information on th

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This annual report contains forward-looking statements. Such statements may include words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe", "forecast" or other similar expressions. Forward-looking statements, including statements about our beliefs and expectations, are not statements of historical facts. These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to: conflicting interests among our major shareholders; the factors described in "Item 3. Key Information-Risk Factors"; our ability to service our debt and fund our working capital requirements; future demand for passenger and cargo air services in Chile, Brazil, other countries in Latin America and the rest of the world; maintenance of our customer relationships due to potential changes in customers' perception of the company, our brands and services in the future; the state of the Chilean, Brazilian, other Latin American and world economies and their impact on the airline industry; the effects of competition in the airline industry; future terrorist incidents, cyberattacks or related activities affecting the airline industry; future outbreak of diseases, or the spread of already existing diseases, affecting travel behavior and/or exports; natural disasters affecting travel behavior and/or exports; the relative value of the Chilean peso and other Latin American currencies compared to other world currencies; the impact of geopolitical risk on the price of fuel, exchange rates, and demand for travel; inflation; competitive pressures on pricing; our capital expenditure plans; changes in labor costs,

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1 IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2 OFFER STATISTICS AND EXPECTED TIMETABLE Not applicable.

KEY INFORMATION

ITEM 3 KEY INFORMATION A. Reserved B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D. Risk Factors The following risk factors, and those important risk factors described in other reports we submit to or file with the Securities and Exchange Commission ("SEC"), could affect our actual results and could cause our actual results to differ materially from those expressed in any forward-looking statements made by us or on our behalf. In order to assess the risks outlined in the risk factors, we have a comprehensive risk model that encompasses various aspects of our business and it is reviewed quarterly. This risk model serves as a framework to identify, assess, and mitigate potential risks that may impact our organization. We understand that risk landscapes evolve, and therefore, we conduct continuous reviews of our risk model to ensure its relevance and effectiveness in addressing emerging risks. In particular, as we are a non-U.S. company, there are risks associated with investing in our ADSs that are not typical for investments in the shares of U.S. companies. Prior to making an investment decision, you should carefully consider all of the information contained in this document, including those described below. Risk Factors Summary The following is a summary of the principal risks that could adversely affect our business, operations and financial results. Risks Relating to our Business High levels of competition in the airline industry and the consolidation or mergers of competitors in the markets in which the group operates, may adversely affect the level of operations. Some of our competitors may receive external support, which could adversely impact our competitive position. The group's business and results of operations may be adversely affected if we fail to obtain and maintain routes, suitable airport access, slots and other operating permits. It cannot be assured that in th

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