Latam Airlines shares climb 30 per cent after Delta says it’ll buy stakes


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Latam Airlines shares climb 30 per cent after Delta says it’ll buy stakes

On Friday, the 27th of September 2019, share prices of LATAM Airlines Group SA, a Chilean airline holding company with subsidies in Argentina, Brazil, Colombia, Ecuador, Peru and Paraguay, headquartered in Las Condes, Chile, snowballed more than 30 per cent on market opening after Atlanta, Georgia-based leading US airliner, Delta Air Lines had told it would purchase a 20 per cent stake of the largest airlines group of Latin America, the LATAM Airlines Group SA for a hefty sum of $1.9 billion, which in effect would put an end to a Chilean airliners’ tie-up with American Airlines and would create a major airline partnership.

On top of that, within an hour, the Santiago-listed shares of LATAM surged more than 33 per cent, while its US-listed shares were up by 39.5 per cent during pre-market trading.

Nonetheless, following the reveal of surprise deal between the Chilean airlines and the US-based aviation legend, Delta Air Lines, NYSE-listed stocks of LATAM Airlines Group SA had wrapped up Friday’s (September 27th) market 31.08 per cent higher to $11.81 per share, a level never seen since February this year.

Aside from that, the LATAM deal had remarked the Georgia-based Delta Air Lines’ biggest since its merger with Northwest Airlines more than a decade ago.