LATAM Airlines Group has secured about US$505 million in long-term financing to add 11 aircraft to its fleet, with deliveries expected in the second half of 2026. The package covers one Airbus A320neo, four Airbus A321neo and six Embraer E195-E2 aircraft, and about US$400 million is structured as sustainability-linked financing.
The transaction was led by BNP Paribas and is LATAM’s largest sustainability-linked financing to date. The structure ties part of the borrowing cost to progress on emissions reduction, with a lower cost available if the airline improves CO2 intensity per unit transported. LATAM linked the deal to its fleet renewal and growth plan, while also aligning the financing with its climate roadmap.
The airline targets a 6% cut in emissions intensity by 2030 versus 2019 levels and net zero by 2050. Andrés del Valle, LATAM’s corporate finance director, described the transaction as a way to diversify funding sources and support fleet expansion while linking financing terms to sustainability performance. It is LATAM’s second sustainability-linked financing after a US$300 million revolving credit line in December 2024 tied to engines.