LATAM Airlines Group S.A. (LTM)

LATAM Airlines Group reported second-quarter 2026 revenue of US$4,183 million on 4 August, up 27.6 percent from a year earlier 2. Adjusted operating income fell to US$227 million from US$423 million, a margin of 5.4 percent against 12.9 percent 2.

The company blames fuel 2. Its average jet fuel cost, hedges included, rose 81.3 percent to US$194.5 per barrel, and total fuel spending rose 93.1 percent 2. Passenger revenue still grew 28 percent, because higher fuel costs were passed on in fares 2.

The same day, the company raised its 2026 forecast for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to US$4.1 to 4.4 billion from US$3.8 to 4.2 billion 2.

Shareholders approved a new share repurchase program on 3 August 3. The board started buying shares on the Santiago exchange on 1 September, for up to 1 percent of share capital over 180 days 4.

LATAM took its present form when LAN Airlines of Chile merged with TAM of Brazil in June 2012 1. LAN itself dates to 1929, when the Chilean government founded it 1.

Before the merger, LAN grew by opening passenger services in Peru in 1999, Ecuador in 2003, Argentina in 2005 and Colombia in 2010 1. After the merger, the Brazilian arm became a leading domestic and international airline in Brazil 1.

The pandemic broke this run 1. On 26 May 2020, LATAM and 28 affiliates filed for Chapter 11 in a New York bankruptcy court, the US route to restructure debts 1. In June 2020 its Argentine airline announced an indefinite end to passenger and cargo flying 1.

The company came out of that process on 3 November 2022 1. Its shares in the form traded in New York had left the NYSE in June 2020 and returned on 25 July 2024, after existing shareholders sold 19,000,000 of them; the company received no proceeds 1.

Revenue then rebuilt: US$11,640.5 million in 2023, US$12,833.0 million in 2024 and US$14,265.1 million in 2025 1. In 2024 passenger capacity grew 15.1 percent on healthy demand, but yields fell 5.8 percent, which the company tied to a fall in fuel costs and exchange rates 1.

In 2025 passenger revenue rose 12.3 percent to US$12,611.5 million as seats offered grew 8.2 percent on healthy demand 1. Cargo revenue rose 3.4 percent to US$1,653.5 million 1.

Profit grew faster than sales 1. Net income rose 49.7 percent to US$1,463.6 million, as fuel cost fell 4.2 percent and financial costs fell 18.2 percent 1. The company paid US$605.2 million in dividends and US$584.8 million across two share repurchase programs 1.

Passenger flying

Passenger flying is the core business: US$12,611.5 million in 2025, 88.4 percent of revenue 1. The group carried about 87 million passengers that year and serves 160 destinations in 27 countries and territories 1.

It ranked first by domestic market share in every South American domestic market it serves except Colombia, where it ranked second 1. Premium cabins made up 29 percent of passenger revenue in the second quarter 2.

The 20-F names low-cost rivals: Sky Airline and JetSmart are main competitors in Chile and Peru, and JetSmart entered the Colombian domestic market in 2024 1.

Cargo

Cargo earned US$1,653.5 million in 2025, 11.6 percent of revenue 1. It flies in the bellies of passenger aircraft and on a fleet of 20 freighters 12.

Cargo demand leans on a few goods: fish, shellfish and fruit from Chile, asparagus from Peru and flowers from Ecuador and Colombia 1.

Fleet and loyalty program

At 30 June 2026 the fleet was 383 aircraft: 302 Airbus narrow-bodies, 2 leased Airbus wide-bodies, 59 Boeing wide-bodies and 20 Boeing freighters 2.

Its loyalty program, LATAM Pass, reached 56 million members, up 9 percent, and members account for 67 percent of passenger revenue 2.

In 2020 LATAM signed a joint venture with Delta Air Lines to combine route networks between North and South America; US approvals were final on 30 September 2022 1.

People and problems

Roberto Alvo has been chief executive since 31 March 2020, and Ignacio Cueto has chaired the board since April 2017 1. The group employed 41,125 people at the end of 2025 1.

Engines are one problem 1. After Pratt & Whitney disclosed a powder metal contamination issue on 25 July 2023, 13 Airbus Neo aircraft were grounded at the end of 2025, about 3.5 percent of the fleet 1.

Fuel is the other 2. The company says Middle East tensions lifted jet fuel prices in the second quarter of 2026, which cut its profit margin even as revenue grew 2.

The umbrella, in words

Everything flies under the LATAM brand 5. The company lists Transporte Aereo S.A. as LATAM Airlines Chile, owned 100.00 percent, and Lan Cargo S.A. as LATAM Airlines Cargo, owned 99.90 percent 5.

In Brazil, TAM S.A. does business as LATAM Airlines Brasil; the company owns 51.04 percent of its voting shares and 100.00 percent of its non-voting shares 5. LATAM Airlines Peru is owned 99.81 percent 5.

No one controls the company outright 1. As of 2 March 2026 the largest holders were Sixth Street Partners with 13.22 percent, Delta Air Lines with 10.57 percent and Qatar Airways Investments (UK) with 10.56 percent 1. Next came AFP Habitat with 5.92 percent and the Cueto Group with 5.29 percent 1.

There is a single class of common shares, and no director or executive has different voting rights 1.

On 4 August the company issued full-year 2026 guidance: capacity growth of 9.0 to 10.0 percent, revenue of US$17.3 to 17.7 billion and adjusted EBITDA of US$4.1 to 4.4 billion 2.

It expects 28 aircraft to arrive in the rest of 2026 and projects a fleet of 410 at the end of 2026, 424 at the end of 2027 and 452 at the end of 2028 2.

Embraer jets are part of that plan 2. The company agreed to take up to 74 E195-E2 aircraft, 24 firm and 50 options, with deliveries starting in the fourth quarter of 2026 1.

LATAM Airlines Brazil expects its E2 fleet to fly 42 domestic routes through March 2027, eight of them new 2.

The 20-F also lists 15 new Boeing 787-9 aircraft for delivery by 2030 and a long-term ambition of carbon neutrality by 2050 1.

Shareholders approved a repurchase program of up to 5 percent of shares over five years, and the board delegated its timing 3.