Latam Airlines: Shifting Ownership and a Renewed Focus on Profitability
After navigating a challenging two-year period under Chapter 11 bankruptcy protection in the United States, Latam Airlines has demonstrably recovered its financial and operational footing. This resurgence, however, has been accompanied by significant shifts in ownership, reflected in the company’s recent public reports. The airline’s restructuring, completed in 2022, fundamentally altered its shareholder base, with creditors gaining substantial equity stakes. This transformation is now playing out in the composition of its board and the strategic direction of one of South America’s largest carriers.
The Chapter 11 reorganization, initiated in 2020, saw creditors—holding convertible bonds—gain the option to acquire approximately 67% of the company’s ownership by late 2022. This shift was immediately reflected in the composition of the post-bankruptcy board of directors. Original shareholders saw their positions significantly diminished, with the notable exception of an alliance between the Cueto family and airlines Delta Air Lines and Qatar Airways, who provided crucial capital injections during the financial crisis. Whereas retaining a stake, their ownership percentage was too reduced.
The airline’s return to Wall Street in July 2024, with the conversion of shares into American Depositary Receipts (ADRs), further reshaped the ownership landscape. While approximately 22.68% of Latam’s ownership was held in ADR form at the end of 2024, that figure decreased to 8.57% by the close of 2025, indicating a period of divestment by major funds seeking to realize their investments. This dynamic is central to understanding the current power structure within Latam Airlines.
From Creditors to Shareholders: The Rise of Sixth Street and Strategic Value Partners
Prior to the ADR conversion, Sixth Street Partners and Strategic Value Partners were the dominant international shareholders. As of the end of 2024, Sixth Street held a 24.1% stake, while Strategic Value controlled nearly 14%, representing a combined 38% ownership. However, both funds have significantly reduced their holdings over the past year. Latam’s latest 20F filing with the U.S. Securities and Exchange Commission (SEC) shows Sixth Street Partners now holding a 13.22% stake, while Strategic Value Partners no longer appears as a shareholder. The SEC’s EDGAR database provides access to these filings.
In 2022, Sixth Street nominated three directors to the board, including two of its own executives and an independent director, Antonio Gil, formerly of Moneda Asset. Strategic Value also secured a board seat. This influence from the funds is now waning as they reduce their investment. The composition of the board is set for another significant change on April 23rd, with the annual shareholder meeting and the renewal of the entire board.
The Cueto-Delta-Qatar Alliance Gains Ground
While the influence of Sixth Street and Strategic Value Partners has diminished, the alliance between the Cueto family, Delta Air Lines, and Qatar Airways has modestly increased its position. Their combined stake rose from 25.11% in December 2023 to 27.05% as of March 2nd, 2025, according to the latest 20F filing. Delta currently holds 10.57%, Qatar Airways 10.56%, and the Cueto family 5.29%. This group has consistently elected four representatives to the board since 2022: Enrique Cueto Plaza (67) and Ignacio Cueto Plaza (62), both long-standing managers of the airline. Sonia Villalobos (62), nominated by Delta; and Alexander Wilcox (55), representing Qatar Airways.
Following Strategic Value’s divestment, its board representative resigned, leaving one vacant seat on the nine-member board. The remaining directors currently include Bornah Mogbel (43) and Michael Neruda (44), both executives from Sixth Street, Federico Curado (64), a former Embraer executive, and Antonio Gil (56). All were appointed in 2022.
The Growing Influence of Pension Funds
A new force is emerging in Latam’s shareholder structure: pension funds (AFPs). By January of this year, AFPs collectively held 19.6% of the airline’s ownership, positioning them to secure at least two seats on the board during the April shareholder meeting. Notably, AFP Habitat is the largest single investor among the AFPs, holding a 5.92% stake as of March 2nd, exceeding even the Cueto family’s ownership. AFP Habitat’s website provides information about their investment portfolio.
Latam’s Financial Rebound and Market Position
These ownership changes are occurring against a backdrop of remarkable financial recovery for Latam Airlines. The airline reported record profits for the second consecutive year in 2025, reaching US$1.46 billion, a 50% increase compared to 2024. This strong performance has boosted the company’s market valuation, with the stock price rising 82.29% last year, although it has experienced a slight decline of around 10% in 2026. Ricardo Bottas, the group’s CFO, attributed the success to “growth in revenues, margins, and net income, aligned with our strategy of profitable growth.”
Latam Airlines has also restored its employment levels to near pre-pandemic figures, employing 41,125 people at the end of 2025, compared to 41,729 in 2019. The company’s workforce grew by 6.3% in 2025, representing a more than 40% increase from the low of 29,000 employees in 2020, the most challenging year for the global aviation industry.
The airline has solidified its position as a key player in its operating markets. Latam claims leadership in domestic segments in Chile (70% market share), Peru (66%), Ecuador (50%), and Brazil (40%). In Colombia, it holds the second-largest market share with 23%. Internationally, Latam holds a 51% share in Peru and 45% in Chile, with smaller shares in other countries (23% in Brazil, 15% in Ecuador, and 6% in Colombia).
Within South America, Latam controls 40% of the total capacity, making it the leading airline in terms of seats. It also dominates routes between South America and Oceania (78% capacity) and North America (33% capacity), and holds a 13% share of capacity on routes between South America and Europe.
Key Takeaways
- Latam Airlines has undergone a significant ownership transformation following its Chapter 11 restructuring.
- Creditors, particularly Sixth Street Partners and Strategic Value Partners, initially gained substantial equity but are now reducing their stakes.
- The alliance between the Cueto family, Delta Air Lines, and Qatar Airways is strengthening its position.
- Pension funds are emerging as significant shareholders, poised to influence the board’s composition.
- Latam Airlines is experiencing a strong financial recovery, with record profits and a rising stock price.
The upcoming shareholder meeting on April 23rd will be a pivotal moment for Latam Airlines, as the board is entirely renewed and the influence of different shareholder groups is further defined. Investors and industry observers will be closely watching to spot how these changes shape the airline’s future strategy and performance. The next key date for investors will be the release of the first-quarter 2026 earnings report, scheduled for May 15th, 2026, where further insights into the airline’s trajectory will be revealed.
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