LATAM plans to suspend 2019 dividend due to coronavirus crisis

The board of LATAM Airlines Group plans to suspend a US$57m dividend payment tied to the company's 2019 profits to preserve cash to weather the new coronavirus crisis, it said Tuesday night. The plan still needs to be voted on by shareholders, but it is likely to be approved, as the company has a controlling shareholder, the Cueto family. LATAM's closest competitors, Avianca Holdings and Gol Linhas Aereas Inteligentes, posted losses in 2019 so they do not have a dividend to distribute. Avianca's board initially proposed to distribute a dividend based on pre-2019 profits but then walked back the proposal in early March amid backlash and as the coronavirus began to spread fast in Latin America. Under Chilean law, companies are expected to distribute 30% of their net profits to shareholders.<br/>