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 151 destinations in 27 countries; and operated 347 fleet of aircraft. The company was …
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Competitive advantage assessment
Key strengths
Scale Supporting ProfitabilityProfitability at scale is strong (score 0.88), demonstrating competitive advantages.
Strong Interest Coverage & Conservative LeverageDebt serviceability is strong (score 0.76), with robust interest coverage.
Key risks
Volatile Margins Suggest CyclicalityMargin volatility is high (stability score 0.12), suggesting cyclical exposure or competitive pressure.
The dashed ring is the peer median. Defense scores are percentile ranks
against peers, so 50 is roughly the typical company in this group.
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LATAM Airlines Group S.A. ranks #6 of 20
scored companies in Airlines by moat score — the top 30%.
The widest moat in the group is SkyWest, Inc. (SKYW)
at 72/100.
Moat scores for companies ranked near LTM in Airlines
Pricing power is the ability to raise prices without losing volume.
Cost Advantage
Score 55
· 15% of the moat score
A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.
Customer Stickiness
Score 69
· 15% of the moat score
Stickiness is what makes revenue repeat without being re-won every year.
Capital Efficiency
Score 61
· 18% of the moat score
Capital efficiency asks what the company earns on the money tied up in the business.
Resilience
Score 73
· 17% of the moat score
Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.
Scale & Market Position
Score 91
· 15% of the moat score
Scale matters only when it converts into economics.
LATAM Airlines Group S.A. (LTM) scores 65 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #6 of 20 scored companies in Airlines, the top 30%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 19 companies in Airlines. Its strongest defense is Scale & Market Position (91/100) and its weakest is Pricing Power (47/100).
How does LATAM Airlines Group S.A. compare with other Airlines companies?
LATAM Airlines Group S.A. ranks #6 of 20 scored companies in Airlines by moat score. The widest moat in Airlines is SkyWest, Inc. (SKYW) at 72/100. The companies ranked closest are Sun Country Airlines Holdings, (SNCY) at 65 just above it and United Airlines Holdings, Inc. (UAL) at 59 just below it.
How is the moat score calculated?
Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 19 companies in Airlines. The defenses are then weighted to produce the overall score out of 100.
Why is LATAM Airlines Group S.A. scored with the Corporate Default template?
Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.
Which competitive defenses are measured for LATAM Airlines Group S.A.?
The Corporate Default template measures 6 defenses, and LTM scores: Pricing Power (47), Cost Advantage (55), Customer Stickiness (69), Capital Efficiency (61), Resilience (73), Scale & Market Position (91). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.
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