What is LATAM Airlines Group S.A.'s Shariah compliance score?

LATAM Airlines Group S.A. (LTM) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does LATAM Airlines Group S.A. pass AAOIFI screening?

LATAM Airlines Group S.A. (LTM) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. LTM's debt-to-market-cap is 65.1%.

How much purification is needed for LATAM Airlines Group S.A.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for LATAM Airlines Group S.A. (LTM) using the latest financial data.

Where can I screen LATAM Airlines Group S.A. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for LATAM Airlines Group S.A. (LTM) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

LTMNot HalalF

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Compliance Status

Not Halal

Screened on Oct 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is LATAM Airlines Group S.A. (LTM) halal? Not Halal. Based on AAOIFI screening, LATAM Airlines Group S.A. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates LATAM Airlines Group S.A. (LTM) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 18, 2026. Source: https://halalscreener.app/en/stock/LTM

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

65.1% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding LTM

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

LTM: Is LATAM Airlines Group S.A. Halal?

LATAM Airlines Group S.A.

NYSEIndustrialsCL

$47.47

Market Cap: 13.6B

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About LATAM Airlines Group S.A.

LATAM Airlines Group S.A., encompassing its various subsidiaries, specializes in providing both passenger and freight air transport services. The company's vast operational footprint extends across multiple continents, covering Chile, Peru, Ecuador, Colombia, Brazil, a range of other Latin American countries, the Caribbean, North America, Europe, and Oceania. In addition to its core aviation business, LATAM offers a suite of supplementary services, including ground handling, courier delivery, logistics solutions, and aircraft maintenance. As of December 31, 2023, the airline catered to passenger travel across 148 destinations in 26 countries, while its cargo operations reached 166 destinations across 33 nations, supported by a fleet of 333 aircraft. Founded in 1929, the company was initially known as LAN Airlines S.A. before officially rebranding to LATAM Airlines Group S.A. in June 2012, and its corporate headquarters are situated in Santiago, Chile.

Sector: Industrials · Industry: Airlines, Airports & Air Services

Why this does not pass

Interest-bearing debt is 65.1% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 18, 2026

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PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: FMP

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This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Frequently Asked Questions

Is LATAM Airlines Group S.A. (LTM) halal to invest in?

LATAM Airlines Group S.A. (LTM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did LATAM Airlines Group S.A. get a F compliance rating?

LATAM Airlines Group S.A. (LTM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 65.1% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change LATAM Airlines Group S.A.'s Shariah verdict?

LATAM Airlines Group S.A.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is LATAM Airlines Group S.A. re-screened for Shariah compliance?

LATAM Airlines Group S.A. (LTM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.