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GENERAL INFORMATION

12 Months Ended

Dec. 31, 2019

Disclosure of general information about financial statements [text block] [Abstract]

Disclosure of general information about financial statements [text block]

NOTE 1 - GENERAL INFORMATION

LATAM Airlines Group S.A. (the “Company”) is a public limited company registered with the Commission for the Financial Market under No. 306, whose shares are listed in Chile on the Electronic Stock Exchange of Chile - Stock Exchange and the Santiago Stock Exchange - Stock Exchange, besides being listed in the United States of America on the New York Stock Exchange (“NYSE”), in the form of American Depositary Receipts (“ADRs”).

Its main business is the air transport of passengers and cargo, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe and Oceania. These businesses are developed directly or by its subsidiaries in Ecuador, Peru, Brazil, Colombia, Argentina and Paraguay. In addition, the Company has subsidiaries that operate in the cargo business in Chile, Brazil and Colombia.

The Company is located in Chile, in the city of Santiago, on Avenida Américo Vespucio Sur No. 901, Renca commune.

As of December 31, 2019, the Company’s statutory capital is represented by 606,407,693 ordinary shares without nominal value. All shares are subscribed and paid considering the capital reduction that occurred in full, after the legal period of three years to subscribe the balance of 466,832 outstanding shares, of the last capital increase approved in August of the year 2016.

The shareholder major of the Company is the Cueto Group, which through the companies Costa Verde Aeronáutica S.A., Costa Verde Aeronáutica SpA, Costa Verde Aeronáutica Tres SpA, Inversiones Nueva Costa Verde Aeronáutica Ltda., Inversiones Priesca Dos y Cía. Ltda., Inversiones Caravia Dos y Cía. Ltda., Inversiones El Fano Dos y Cía. Ltda., Inversiones La Espasa Dos S.A. e Inversiones La Espasa Dos y Cía. Ltda., Owns 21.46% of the shares issued by the Company.

As of December 31, 2019, the Company had a total of 1,228 shareholders in its registry. At that date, approximately 4.17% of the Company’s property was in the form of ADRs.

For the period ended December 31, 2019, the Company had an average of 41,043 employees, ending this period with a total number of 41,729 people, distributed in 6,966 Administration employees, 4,911 in Maintenance, 13,538 in Operations, 9,511 Cabin Crew, 4,298 Cockpit Crew and 2,505 in Sales.

The main subsidiaries included in these consolidated financial statements are as follows:

a)	Participation rate

		Country	Functional	As December 31, 2019						As December 31, 2018						As December 31, 2017
Tax No.	Company	of origin	Currency	Direct		Indirect		Total		Direct		Indirect		Total		Direct		Indirect		Total
					%		%		%		%		%		%		%		%		%
96.518.860-6	Latam Travel Chile S.A. and Subsidiary	Chile	US$		-		-		-		99.9900		0.0100		100.0000		99.9900		0.0100		100.0000
96.969.680-0	Lan Pax Group S.A. and Subsidiaries	Chile	US$		99.8361		0.1639		100.0000		99.8361		0.1639		100.0000		99.8361		0.1639		100.0000
Foreign	Latam Airlines Perú S.A.	Peru	US$		49.0000		21.0000		70.0000		49.0000		21.0000		70.0000		49.0000		21.0000		70.0000
93.383.000-4	Lan Cargo S.A.	Chile	US$		99.8940		0.0041		99.8981		99.8940		0.0041		99.8981		99.8940		0.0041		99.8981
Foreign	Connecta Corporation	U.S.A.	US$		100.0000		0.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Prime Airport Services Inc. and Subsidiary	U.S.A.	US$		99.9714		0.0286		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.951.280-7	Transporte Aéreo S.A.	Chile	US$		99.9999		0.0001		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.631.520-2	Fast Air Almacenes de Carga S.A.	Chile	CLP		99.8900		0.1100		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Laser Cargo S.R.L.	Argentina	ARS		96.2208		3.7792		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
Foreign	Lan Cargo Overseas Limited and Subsidiaries	Bahamas	US$		99.9800		0.0200		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary	Chile	US$		99.0000		1.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000
96.575.810-0	Inversiones Lan S.A. and Subsidiaries	Chile	US$		99.7100		0.2900		100.0000		99.7100		0.2900		100.0000		99.7100		0.2900		100.0000
96.847.880-K	Technical Trainning LATAM S.A.	Chile	CLP		99.8300		0.1700		100.0000		99.8300		0.1700		100.0000		99.8300		0.1700		100.0000
Foreign	Latam Finance Limited	Cayman Island	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Peuco Finance Limited	Cayman Island	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Profesional Airline Services INC.	U.S.A.	US$		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000		100.0000		0.0000		100.0000
Foreign	Jarletul S.A.	Uruguay	US$		99.0000		1.0000		100.0000		99.0000		1.0000		100.0000		99.0000		1.0000		100.0000
Foreign	TAM S.A. and Subsidiaries (*)	Brazil	BRL		63.0901		36.9099		100.0000		63.0901		36.9099		100.0000		63.0901		36.9099		100.0000

(*)

As of December 31, 2019, the indirect participation percentage on TAM S.A. and Subsidiaries is from Holdco I S.A., a company over which LATAM Airlines Group S.A. it has a 99.9983% share on economic rights and 51.04% of political rights. Its percentage arise as a result of the provisional measure No. 863 of the Brazilian government implemented in December 2018 that allows foreign capital to have up to 100% of the property.

b)	Financial Information

		Statement of financial position																						Net Income
																								For the year ended
																								December 31,
		As of December 31, 2019								As of December 31, 2018							As of December 31, 2017							2019			2018			2017
Tax No.	Company	Assets			Liabilities		Equity			Assets		Liabilities		Equity			Assets		Liabilities		Equity						Gain /(loss)
		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$
												Restated							Restated								Restated			Restated
96.518.860-6	Latam Travel Chile S.A. and Subsidiary		-			-		-			10,841		3,909		6,932			6,771		2,197		4,574			-			2,385			1,833
96.969.680-0	Lan Pax Group S.A. and Subsidiaries (*)		632,673			1,487,248		(853,624	)		526,017		1,281,800		(751,960	)		499,345		1,101,548		(596,406	)		(26,551	)		(48,061	)		(35,943	)
Foreign	Latam Airlines Perú S.A.		519,363			510,672		8,691			419,325		409,221		10,104			315,607		303,204		12,403			(3,550	)		5,416			1,205
93.383.000-4	Lan Cargo S.A.		634,852			462,666		172,186			513,367		336,715		176,652			584,169		371,934		212,235			(4,157	)		(34,322	)		(30,220	)
Foreign	Connecta Corporation		64,110			24,023		40,087			66,593		28,183		38,410			38,735		17,428		21,487			1,677			16,923			13,030
Foreign	Prime Airport Services Inc. and Subsidiary (*)		22,068			23,102		(1,034	)		15,817		17,654		(1,837	)		12,671		15,722		(3,051	)		802			1,225			857
96.951.280-7	Transporte Aéreo S.A.		359,335			142,423		216,912			331,496		129,233		202,263			324,498		104,357		220,141			14,610			(17,609	)		2,172
96.631.520-2	Fast Air Almacenes de Carga S.A.		20,182			12,601		7,581			17,057		9,614		7,443			12,931		4,863		8,068			796			(3	)		939
Foreign	Laser Cargo S.R.L.		(10	)		-		(10	)		26		13		13			18		27		(9	)		-			(3	)		2
Foreign	Lan Cargo Overseas Limited and Subsidiaries (*)		48,929			15,228		33,450			53,326		13,040		40,028			66,039		42,271		18,808			(6,579	)		19,121			3,438
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary (*)		65,422			78,890		(12,111	)		181,522		192,059		(9,614	)		144,884		156,005		(10,112	)		(2,497	)		497			3,389
96.575.810-0	Inversiones Lan S.A. and Subsidiaries (*)		1,329			50		1,279			1,383		50		1,333			11,681		5,201		6,377			(54	)		(4,774	)		1,561
96.847.880-K	Technical Trainning LATAM S.A.		2,378			1,075		1,303			2,879		1,031		1,848			1,967		367		1,600			(282	)		884			109
Foreign	Latam Finance Limited		1,362,762			1,531,238		(168,476	)		679,034		756,774		(77,740	)		678,289		708,306		(30,017	)		(90,736	)		(47,723	)		(30,017	)
Foreign	Peuco Finance Limited		664,458			664,458		-			608,191		608,191		-			608,191		608,191		-			-			-			-
Foreign	Profesional Airline Services INC.		3,509			1,950		1,559			2,430		1,967		463			3,703		3,438		265			1,096			197			294
Foreign	Jarletul S.A.		150			860		(710	)		18		125		(107	)		-		-		-			(603	)		(107	)		-
Foreign	TAM S.A. and Subsidiaries (*)		5,090,180			3,550,875		1,539,305			4,420,546		3,256,017		1,164,529			4,490,714		3,555,423		856,829			186,140			389,072			160,582

(*)

The Equity reported corresponds to Equity attributable to owners of the parent, it does not include Non-controlling interest.

Additionally, special purpose entities have been consolidated: 1. Chercán Leasing Limited, created for aircraft advances financing; 2. Guanay Finance Limited, created for the issuance of secured bonds with future credit card payments; 3. Private investment funds; 4. Dia Patagonia Limited, Alma Leasing C.O. Limited, FC Initial Leasing Limited, Vari Leasing Limited, Dia Iguazu Limited, Condor Leasing C.O. Limited, FI Timothy Leasing Limited, Yamasa Sangyo Aircraft LA1 Kumiai, Yamasa Sangyo Aircraft LA2 Kumiai, LS-Aviation No.19 C.O. Limited, LS-Aviation No.20 C.O. Limited, LS-Aviation No.21 C.O. Limited, LS-Aviation No.22 C.O. Limited and LS-Aviation No.23 Co. Limited created for aircraft financing. Those companies have been consolidated as required by IFRS 10.

All controlled entities have been included in the consolidation.

Changes occurred in the consolidation perimeter between January 1, 2018 and December 31, 2019, are detailed below:

(1)	Incorporation or acquisition of companies

-	On January 22, 2018, Lan Pax Group S.A., purchased 17,717 shares of Laser Cargo SRL. to Andes Airport Service S.A., consequently Lan Pax Group S.A. ownership is 3.77922% and Lan Cargo S.A. with a 96.22078% share of Laser Cargo SRL.

-	On March 13, 2018, the company Jarletul S.A., was create. The company ownership is 99% of LATAM Airlines Group S.A. and a 1% is from Inversiones Lan S. A., and its main activity is a travel agency.

-	As of December 31, 2018, Inversiones LAN S.A., subsidiary of LATAM Airlines Group S.A., acquired 5,319 shares of Aerovías de Integración Regional Aires S.A. a non-controlling shareholder, consequently, the indirect participation of LATAM Airlines Group S.A. corresponds to 99.2012%.

In April 2019, TAM Linhas Aereas S.A, through a public offering of shares, acquired 27.26% of the shares of Multiplus S.A., owned by minority shareholders. Subsequently, the Company TAM S.A assigned 72.74% of its stake in Multiplus S.A., through a capital increase, to TAM Linhas Aerea S.A.; Because of 100% of the shares remain under the control of TAM Linhas Aereas S.A. a merge with Multiplus S.A. was materialized, leaving Multiplus S.A. from being an independent company on May 31, 2019. As result of the merger by incorporation, the Coalition and Loyalty Program of Multiplus S.A. which was identified as an independent Cash Generating Unit (CGU), and which also represented an operating segment, becomes part, as well as, the other loyalty programs of the group (LATAM Pass and LATAM Fidelidade), of the CGU Air Transport. Additionally, from that moment LATAM has a single operating segment within the Group.

The value of the acquisition of this transaction was ThUS $ 294,105.

-	By public deed dated November 20, 2019 LATAM Airlines Group S.A. acquires 100% of the shares of LATAM Travel Chile S.A.

Under the provisions of No. 2 of Art. 103 of Law No. 18,046 on Corporations, for having collected all the shares held by a single shareholder and for having elapsed the period of 10 days without having amended said situation, the company LATAM Travel Chile S.A. It has been fully dissolved on December 1, 2019.

As a result of the dissolution of the company LATAM Travel Chile S.A., the company LATAM Airlines Group S.A. assumes from that date all obligations and rights corresponding to the first.

(2)	Disposal of companies.

-	On May 7, 2018 LATAM Airlines Group S.A. and its subsidiaries Inversiones LAN S.A. and LAN Pax Group S.A., sold, assigned and transferred to the Spanish companies Acciona Airport Services, S.A. and Acciona Aeropuertos, S.L., 100% of its shares in the subsidiary Andes Airport Services S.A.

The sale value of Andes Airport Services S.A. it was ThUS$ 39,108

-	On November 30, 2018, Mas Investment Limited, a subsidiary of LATAM Airlines Group S.A., sold to Puente Aéreo Corporación S.A. de C.V. his participation in the companies Aero Transportes Mas de Carga S.A. de C.V. and Promotora Aérea Latino Americana S.A. de C.V.

The sale value of this transaction was ThUS$ 29,466.