Is LATAM AIRLINES GROUP S.A. (LTM) Halal?

NYSE Industrials Chile $14.0B
✗ NOT HALAL
Confidence: 90/100
LATAM AIRLINES GROUP S.A. (LTM) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 51.6% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. LATAM AIRLINES GROUP S.A. operates in the Industrials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 51.6%
/ 30%
14.5%
/ 30%
9.9%
/ 30%
0.0%
/ 5%
✗ NOT HALAL
DJIM 51.6%
/ 33%
14.5%
/ 33%
9.9%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
MSCI 46.9%
/ 33%
13.2%
/ 33%
9.0%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 51.6%
/ 33%
14.5%
/ 33%
9.9%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
FTSE 46.9%
/ 33%
13.2%
/ 33%
9.0%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
9.7
Forward: 7.0
EPS
$4.95
Dividend Yield
502.0%
Payout: 48.7%
P/B Ratio
23995.0
EV/EBITDA
7750.3
EV: $27.6T
Revenue
$14.3B
Growth: 16.1%
Beta
1.1
Average volatility
Current Ratio
0.6

Profitability

Gross Margin 29.2%
Operating Margin 16.9%
Net Margin 10.2%
Return on Equity (ROE) 142.9%
Return on Assets (ROA) 8.9%

Cash Flow & Balance Sheet

Free Cash Flow$1.9B
Total Debt$8.1B
Debt-to-Equity604.9
Current Ratio0.6
Total Assets$17.6B

Price & Trading

Last Close$48.69
50-Day MA$56.81
200-Day MA$48.84
Avg Volume1.4M
Beta1.1
52-Week Range
$26.36
$70.42

About LATAM AIRLINES GROUP S.A. (LTM)

CEO
Mr. Roberto Alvo Milosawlewitsch
Employees
41,125
Sector
Industrials
Industry
Airlines
Country
Chile
Exchange
NYSE
Market Cap
$14.0B
Currency
USD

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Argentina, Peru, Colombia, Ecuador, Brazil, the United States, other Latin American countries, the Caribbean, Europe, and Oceania. As of December 31, 2024, the company provides passenger transport services to 160 destinations in 27 countries; and operated 371 fleet of aircraft. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile.

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Frequently Asked Questions

Is LATAM AIRLINES GROUP S.A. (LTM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), LATAM AIRLINES GROUP S.A. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is LATAM AIRLINES GROUP S.A.'s debt ratio?

LATAM AIRLINES GROUP S.A.'s debt ratio is 51.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 46.9%.

What are LATAM AIRLINES GROUP S.A.'s key financial metrics?

LATAM AIRLINES GROUP S.A. has a market capitalization of $14.0B, trailing P/E ratio of 9.7, and revenue of $14.3B. The company maintains a gross margin of 29.2% and a net margin of 10.2%. Return on equity stands at 142.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.