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LATAM Airlines Group reported its financial results for the first quarter of this year, which continue to show a positive trend in both their operational and financial performance.
The group closed the period with US$355 million in net profit, 38% more than the first quarter of the year 2024 and an adjusted operating margin of 16,8%. At the same time, the group transported 21 million passengers, 3,6% more than in the same period last year.
At the same time, achieved a record first quarter in financial profitability with an adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs by their acronyms in English) of almost US$1 billion, which reflects a disciplined and consistent management of the group in a context of healthy demand and customer preference for the group's value proposition LATAM.
Latam closes first quarter with positive net utility
During the period, The group had operating income of US$3,411 million, a 2,7% more than last year, explained by an increase in 1,6% in passenger revenue and an increase in 9,8% in cargo revenue. For his part, Adjusted operating income reached US$573 million, which represents a growth of 23,9% compared to the same quarter last year.
In addition to record profitability, LATAM generated US$585 million in adjusted operating cash flow and US$189 million in net cash during the first quarter, closing the period with a liquidity of 28,4% on trailing twelve month revenues and adjusted net leverage of 1,5 times.
In terms of consolidated capacity, measured in available seat kilometers (ASK), the LATAM group grew 7,3%, driven mainly by an increase in 10,7% in international operations. The extensive network of the LATAM group continued to attract passengers who valued the connectivity offered by the group that went from 151 destinations in December 2024 a 153 destinations in 27 countries in March 2025.
These good results and the stable demand environment led LATAM to improve its guidance for the year 2025. The group expects an updated adjusted operating margin of 13,0% a 15,0% (in front of 12,0% – 13,5% of the previous guidance issued on 3 from December to 2024) and an adjusted EBITDAR of US$3,400 – US$3.75 billion (compared to US$3,250 – US$3.6 billion compared to previous guidance).
“LATAM's capacity for operational and financial adaptation allows it to be well prepared to face the coming months.”, leveraging the group's agility to deliver strong results and capture opportunities across the region. Despite a dynamic and challenging macroeconomic environment, the group remains focused on promoting profitable growth, elevate customer travel experience, expand employee commitment and generate value for the shareholders of LATAM Airlines Group S.A.», said Ricardo Bottas, CFO de LATAM Airlines Group.
On the other hand, A share repurchase program was approved for up to 1,6% of shares in circulation during the next 18 months. LATAM is executing the program through a Firm Block Offer (OFB) pro rata on the Santiago Stock Exchange for up to 9.670 million shares (1,6% of the total share capital), at a price of $15,02 Chilean pesos per share (approximately US$153 million). The OFB will be in force until 30 next april.
At the same time, LATAM received improvements in its credit rating. S&P Global Ratings upgraded LATAM's rating to "BB" from "BB-", with a stable perspective. Fitch Ratings also upgraded LATAM's rating to "BB" from "BB-.", with a positive perspective.
Experience and sustainability
The LATAM group continued to invest in the travel experience of its customers by improving digital services, modernization of cabins and expansion of Wi-Fi connectivity- Fi throughout the fleet. At the end of the quarter, almost the 90% of the narrow body fleet had been equipped with Wi-Fi while the 61% of the wide body fleet featured upgraded aircraft interiors to offer a more modern travel experience, comfortable and connected. What's more, in the narrow fleet, we have implemented in the 100% of aircraft a premium economy class cabin for domestic and international flights within South America.
What's more, The LATAM group launched the new business class cabins for its wide body fleet. This new proposal further increases comfort by introducing suite doors, the first of their kind in South America, for a world class product with complete privacy. Developed with a strong focus on sustainability and greater passenger comfort, the new Premium Business offers an improved experience for premium customers, with fully reclining seats with direct aisle access, HD screens and modern charging ports. Complementing these efforts to elevate the premium experience, An investment was announced for a new Lounge at Guarulhos Airport (Sao Paulo) which will be inaugurated in 2027. At the same time, the group launched its new “Signature Check-in” experience, aimed at providing faster service, personalized and seamless for premium passengers at some airports.
All of the above translated into greater customer satisfaction., who rated the LATAM group with a Net Promoter Score (NPS) from 56 points, the highest score in the group's history and an increase of 5,6 points compared to the first quarter of 2024.
At fleet level, During the quarter the group received two new A320neo aircraft, supporting greater fuel efficiency and lower emissions. These aircraft are part of the 26 what is expected to be received in 2025, in line with the LATAM group's fleet plan for growth and modernization.
In terms of sustainability, LATAM was recognized as one of the leading companies in sustainability worldwide, according to the prestigious annual sustainability report of S&P Global, “Sustainability Yearbook”.
This report highlights companies that have demonstrated outstanding performance in sustainability management., evaluated based on its environmental practices, social and corporate governance.
To classify in the yearbook, Companies must obtain a score within the 15% top of your industry. In the edition of 2025, S&P Global evaluated more than 7.690 companies, of which 780 are part of the publication. in the industry, solo 6 managed to be included in the “Sustainability Yearbook”.
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