LATAM Airlines Group closed a loan for approximately $505 million to finance the addition of 11 aircraft to its fleet with deliveries in the second half of 2026.
“This transaction combines three elements relevant to LATAM’s financial strategy: it diversifies our sources of financing, supports the renewal and growth of our fleet, and links some of its terms to our sustainability performance. Furthermore, it allows us to finance the acquisition of Embraer aircraft for the first time through this structure, while maintaining our access to long-term competitive terms in international markets,” explained Andrés del Valle, the company’s Director of Corporate Finance.
He specified that of the total transaction, $400 million corresponds to sustainability-related financing . The deal includes one Airbus A320neo, four A321neos, and six Embraer E195-E2s, and involves a long-term loan structure led by BNP Paribas .
The agreement represents the first transaction of its kind for LATAM’s Embraer fleet and allows the group to access competitive long-term financing in a context of market volatility and high fuel costs.
The loan includes interest rate incentives tied to the company’s emissions performance. This means that as the group makes progress in reducing the amount of carbon dioxide (CO₂) emitted per unit transported, its emissions intensity will qualify for more favorable financing terms. Furthermore, these incentives align with the LATAM group’s sustainability goals, which aim to reduce its emissions intensity by 6% by 2030 compared to 2019 levels and move toward its objective of achieving net-zero emissions by 2050.
He noted that this is the second operation of this type carried out by the company , since in December 2024 it closed its first Sustainability-Linked Loan, a revolving credit line guaranteed by engines for 300 million dollars.
This agreement is in addition to the fleet renewal plan that the LATAM group is developing during 2026 .
In the first half of the year, it added 13 state-of-the-art aircraft and projects receiving another 28 before the end of the year, exceeding 40 annual additions. With this, the group expects to end 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 in 2027 the company’s first Airbus A321XLR will debut.
By 2030, LATAM plans to add up to 130 more aircraft, meaning that more than 50% of its fleet will be state-of-the-art. According to their manufacturers, these models reduce CO₂ emissions by 20% to 25% compared to previous generations, contributing to the progress toward the goal of net-zero emissions by 2050.
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