Is LATAM AIRLINES GROUP S.A. (LTM) Halal?
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
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-Equity | 604.9 |
| Current Ratio | 0.6 |
| Total Assets | $17.6B |
Price & Trading
| Last Close | $48.69 |
| 50-Day MA | $56.81 |
| 200-Day MA | $48.84 |
| Avg Volume | 1.4M |
| Beta | 1.1 |
|
52-Week Range
$26.36
| |
About LATAM AIRLINES GROUP S.A. (LTM)
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.