LATAM Airlines Group has called an extraordinary shareholders meeting for August 3 to seek approval for a share buyback program.
The move signals the carrier's intent to return capital to investors, though the scope of any repurchase will be strictly limited by Chilean corporate regulations.
Under Chilean law, companies are capped at repurchasing no more than 5% of their paid-up shares within a five-year period.
Under Chilean law, companies are capped at repurchasing no more than 5% of their paid-up shares within a five-year period.
This statutory ceiling constrains the potential scale of the buyback, meaning the program is likely to be a targeted capital return rather than a large-scale reduction in share count.
The board's decision to pursue this route suggests confidence in the airline's current liquidity position and valuation.
The announcement comes as LATAM navigates a complex macroeconomic environment.