LONDON: July 11, 2016. Qatar Airways is to acquire up to 10 percent of the LATAM Airlines Group following a capital increase of US$613 million by the Santiago, Chile-based company. The deal is expected to complete in the fourth quarter of 2016.
"LATAM represents an exciting opportunity to invest and support the development of our long-term relationship. As a leading airline in Latin America, and key member of oneworld, this investment provides potential opportunities for Qatar Airways’ global network, alongside our successful investment in IAG," said Qatar Airways group CEO Akbar Al Baker (right of picture).
Qatar Airways reported an operating profit of QR3.0 billion on revenue of QR35.16 billion for its latest fiscal year ending March 31, 2016. Profit before tax was QR1.6 billion, tax was QR2.9 million, and the net profit was QR1.62 billion.
The company also reported a “net other comprehensive” loss of QR3.55 billion for the year that resulted in a “net comprehensive” loss of QR1.93 billion. Current share capital is QR43.4 billion and its non-current loans are QR15.9 billion.
Commenting on the LATAM investment group CEO Enrique Cueto (left of picture) said: “We are proud to announce Qatar Airways as a new shareholder of LATAM, reaffirming our bond as existing members of the oneworld alliance. This investment recognizes LATAM’s achievements and supports our project for the future. In addition to strengthening our financial position, it will allow us to explore new opportunities for connectivity with Asia and the Middle East, as well as other potential areas of cooperation.”