LATAM Airlines Approves 5% Share Buyback Program Over Five Years
The Chilean carrier's board gains authority to repurchase up to 28.7 billion shares through pro rata and direct market purchases.
Shareholders Authorize Buyback
LATAM Airlines Group S.A. disclosed that shareholders approved a new share repurchase program at an extraordinary meeting held August 3, allowing the company to buy back up to 5% of its outstanding shares over the next five years.
The Chilean carrier, which closed at $25.25 with a market capitalization near $16 billion, received authorization to acquire "up to 28,710,799,185 shares out of a total of 574,215,983,709 shares" (6-K filing, 2026-08-03). The program aims to serve "as an efficient allocation of the Company's resources to generate value for the Company and its shareholders as a whole" (6-K filing, 2026-08-03).
Board Gains Broad Discretion
The extraordinary shareholders' meeting delegated significant authority to LATAM's board of directors to execute the program. The board received authorization "to set the minimum and maximum acquisition price for the shares," with full discretion to "modify such determination as many times as it deems necessary" (6-K filing, 2026-08-03).
The filing, signed by Chief Financial Officer Ricardo Bottas Dourado Dos Santos, indicates the board may conduct purchases "in one or more transactions and at such times as it deems appropriate" (6-K filing, 2026-08-03).
Flexible Purchase Mechanisms
Shareholders approved multiple acquisition channels under Chilean corporate law. The primary mechanism allows purchases "on stock exchanges through systems that allow the pro rata acquisition of the shares tendered" (6-K filing, 2026-08-03). If the targeted percentage is not reached through pro rata systems, "the remaining balance may be purchased directly in the market" (6-K filing, 2026-08-03).
Additionally, the board retains standing authority to acquire shares directly "in an amount representing up to 1% of the Company's share capital within any 12-month period, without the need to apply the pro rata procedure" (6-K filing, 2026-08-03).
Disposal Authority Included
The authorization extends beyond purchases to include disposal rights. Should the board choose to sell repurchased shares, it may dispose of "up to 1% of the Company's share capital within any 12-month period, without having to offer them preferentially to the shareholders" (6-K filing, 2026-08-03), provided certain legal conditions are met under Chilean law.
Timing Context
The announcement arrives one day before LATAM is scheduled to report second-quarter 2026 results on August 4, according to MarginX data, with an earnings call set for August 5. The timing positions the buyback program as a capital allocation tool the company can deploy following its quarterly report.
The five-year duration provides LATAM with an extended window to execute repurchases opportunistically, though the filing does not specify timing preferences or price parameters the board will ultimately establish.
This article was generated by MarginX from the 6-K filing on 2026-08-03. It is not investment advice.