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Despite the external situations that occur globally, LATAM Airlines is in its best economic moment and reported net profits of US$576 million.
LATAM Airlines Group announced its financial results for the first quarter of the year, reporting an adjusted operating margin of 19,8% and a net profit of US$576 million. The above is explained by its business model based on a differentiated value proposition for customers., excellent operational execution and solid financial discipline that provide the necessary flexibility to face the current global economic context. This financial strength is complemented by an extensive network, a diversified revenue base and robust loyalty program.
During the quarter, The group increased its capacity by 10,4%, transport 22,9 million passengers, a 9,1% more with respect to the same period of 2025. This growth was driven by the performance of the international segment and the domestic market of LATAM Airlines Brazil. In this context, The group achieved a consolidated load factor of 85,3%. For his part, cargo subsidiaries mobilized more than 250 thousand tons in the period, leading the flower season since Colombia and Ecuador toward EE.UU.
The best economic moment in LATAM
The EBITDA (earnings before interest, taxes and depreciation and amortization) adjusted reached US$1,315 million, demonstrating disciplined commercial execution despite the impact of approximately US$40 million related to the increase in fuel prices during the period. At the same time, LATAM generated US$391 million in cash, maintaining total liquidity greater than US$4.1 billion or 27% of the income of the last 12 months.
“LATAM started the 2026 maintaining the trend of 2025 and consolidating its financial performance, with sustained growth in income, margins and cash generation. This solidity, powered by a diversified network, the advancement of the premium segment and an efficient cost structure, “It provides the necessary flexibility to manage fuel volatility and uncertainty for the rest of the year.”, said Ricardo Bottas, CFO of LATAM Airlines Group.
As a result of market volatility and current uncertainty, LATAM has replaced its guidance for 2026 and changed its fuel price and exchange rate assumptions, reporting a CASK projection (cost per seat – kilometer available) adjusted number of passengers without fuel between 4,50 a 4,70 (cents on the dollar) and adjusted EBITDA of US$3.8 billion to US$4.2 billion. LATAM projects an adjusted net leverage ratio equal to or less than 1.8x and liquidity greater than or equal to US$4.5 billion.
These new projections assume new fuel cost assumptions of US$170/barrel for the second and third quarters and US$150/barrel for the fourth quarter. Another relevant update was the review of the projected exchange rate for Brazil, from 5,5 a 5,15 (BRL/USD), what, along with the appreciation of other local currencies, Fuel-Free Adjusted Passenger CASK Drives Up.
LATAM foresees additional fuel expenses of more than US$700 million in the second quarter of 2026, considering a jet fuel price of US$170 per barrel. The impact on margins and cash flows is expected to be partially offset by a series of measures adopted since the beginning of the conflict., which include actions for income management, targeted capacity adjustments, additional cost control initiatives, Liquidity Measures for Finance and Working Capital, as well as the coverage policy LATAM. Regarding the outlook for the second quarter, despite significant fuel price impact, LATAM expects tight mid- to low-single digit operating margin. These elements are considered in the new guidance for 2026.
Milestones of the period
Beyond the numbers, LATAM continues to redefine its value proposition. The group LATAM became the first Latin American airline to obtain the qualification of 4 stars in the Skytrax World Airline Star Rating, a milestone in service quality.
In line with its focus on the corporate and high value segment, LATAM announced that its future Airbus A321XLR fleet will have a renovated Premium Business cabin, which will include fully reclining seats and individual doors for maximum privacy.
in parallel, LATAM Airlines Group was ratified by S&P Global as the 5th most sustainable airline in the world and the 1st in the Western Hemisphere for the second consecutive year. This recognition, along with its inclusion in the Sustainability Yearbook of S&P Global, reflects the efforts made by the group to contribute to the regions where it operates.
In April, LATAM Airlines Brazil and Delta Air Lines, Inc. announced a long-term commercial agreement for maintenance services, repair and overhaul (MRO) in São Carlos (Sao Paulo), Brazil, focused on the repair of A320 family components.
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