LATAM Airlines Group SA

Latest Results (01.09.2026):

LATAM Airlines Group S.A. reported results for the second quarter of 2026 (2Q 2026). Total revenues rose 27.6% YoY to US$4,183 million, driven by a 28% increase in passenger revenues and a 22% increase in cargo revenues, while the group delivered a positive adjusted operating margin of 5.4% despite sharp jet-fuel cost inflation and capacity growth.

Top-line and profitability

Total operating revenues were US$4,183m in 2Q 2026 (+27.6% YoY). Adjusted operating margin was 5.4% (down from 12.9% in 2Q 2025) and adjusted operating income fell to US$227m (−46.3% YoY).

Adjusted EBITDA and margins

Adjusted EBITDA for 2Q 2026 was US$713m, down 16.1% YoY, giving an adjusted EBITDA margin of 17.0% (vs 25.9% in 2Q 2025).

Net income and EPS

Net income attributable to owners was US$125m in 2Q 2026 (−48.2% YoY). Diluted earnings per ADS were US$0.44 (−46.0% YoY).

Passenger and cargo performance

Passenger RASK improved to 8.1 US cents (+17.5% YoY) with capacity up 8.9% and load factor at 81.8%. Passenger revenues were US$3,613m (+27.9%). Cargo revenues were US$510m (+21.8%), with yields up 17.8%.

Fuel and cost pressure

Aircraft fuel expense rose 93.1% YoY; average all-in jet fuel price (including hedges) was US$194.5/barrel for the quarter. Adjusted passenger CASK ex‑fuel increased 5.6% to 4.5 US cents. Wages, maintenance and commissions also contributed to higher operating costs.

Liquidity, leverage and cash flow

Cash and cash equivalents were US$2,651m at June 30, 2026; total liquidity (cash + undrawn RCF) was US$4,226m. Adjusted net leverage (Net Debt / LTM Adj. EBITDA) was 1.5x. H1 cash increased by US$501m; adjusted levered free cash flow for the six months was about US$732m.

Guidance update

LATAM reinstated full-year 2026 guidance and raised its adjusted EBITDA range to US$4.1–4.4 billion (previously US$3.8–4.2bn). Revenue guidance is US$17.3–17.7bn and adjusted operating margin guidance is ~12–13% under the updated outlook.

Capital allocation and shareholder action

Shareholders approved a new share repurchase program (up to 5% of shares over five years) on August 3, 2026; execution details were delegated to the Board. The company continued fleet investment while preserving liquidity.

Fleet and network developments

As of 2Q 2026 the group operated 383 aircraft (average fleet 379). LATAM expects 28 aircraft deliveries in the remainder of 2026 and announced LATAM Airlines Brazil’s initial Embraer E195‑E2 domestic network expansion to 42 routes through March 2027.

Commercial & loyalty strengths

Management highlighted resilient premium revenues (premium = 29% of passenger revenues in 2Q 2026) and LATAM Pass growth to 56 million members (+9% YoY), with elite members up 26%, supporting revenue quality and demand.