LATAM Airlines Group has secured approximately US$505 million in financing to support the addition of 11 next-generation aircraft to its fleet in the second half of 2026.
The financing, led by BNP Paribas, includes an approximately US$400 million sustainability-linked tranche and covers one Airbus A320neo, four Airbus A321neo and six Embraer E195-E2 aircraft.
The transaction will support LATAM’s ongoing fleet renewal programme and the expansion of its next-generation aircraft fleet. The financing is also the first time LATAM has used this structure to fund the incorporation of Embraer aircraft.
“This transaction combines three elements that are relevant to LATAM’s financial strategy: it diversifies our sources of financing, supports the renewal and growth of our fleet, and links part of its terms to our sustainability performance. In addition, it allows us to finance the incorporation of Embraer aircraft through this structure for the first time, while maintaining access to competitive long-term terms in international markets”, said Andrés del Valle, Corporate Finance Director of LATAM Airlines Group.
The sustainability-linked portion of the loan includes interest-rate adjustments tied to LATAM’s emissions intensity performance. The terms are linked to the airline’s target of reducing emissions intensity by 6% by 2030 compared with 2019 levels, as part of its longer-term goal of reaching net-zero emissions by 2050.
For the MRO and fleet-support sector, the transaction is significant as LATAM continues to increase the proportion of newer-generation aircraft in its fleet. The airline expects to receive 28 additional aircraft during the second half of 2026, following the delivery of 13 next-generation aircraft in the first six months of the year.
LATAM expects to operate more than 410 aircraft by the end of 2026. The Embraer E195-E2 is also scheduled to enter Brazil’s domestic network for the first time, while LATAM’s first Airbus A321XLR is expected to enter service in 2027.
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The airline plans to add up to 130 aircraft by 2030, with more than half of its fleet expected to comprise next-generation aircraft. According to Airbus and Embraer, the aircraft involved in the fleet renewal programme can reduce CO₂ emissions by approximately 20% to 25% compared with previous-generation aircraft.
LATAM previously secured a US$300 million sustainability-linked revolving credit facility in December 2024, backed by aircraft engines. The latest financing expands the use of sustainability-linked funding as the airline continues its fleet renewal programme.
