LATAM Airlines Group reported its financial and operational results for the second quarter of 2026, highlighting a net profit of US$125 million and an operating margin of 5.4%. Total revenue for the group reached US$4.183 billion, representing a 28% increase compared to the same period in 2025.
During this period, the group transported 21.1 million passengers and recorded an 8.9% increase in consolidated capacity. Performance across segments reflected strong demand dynamics:
- International Segment: Expanded by 11.8%.
- Domestic Capacity (LATAM Airlines Brazil): Increased by 5.7%.
- Domestic Operations (Chile, Colombia, Ecuador, and Peru): Grew by 5.3%.
- Load Factor: Consolidated at 81.8%.
This operational growth was driven by commercial diversification across the group, expansion in the premium cabin segment, and higher engagement in its loyalty program, LATAM Pass, which reached 56 million members. Elite tier membership rose 26% year-over-year, while 67% of passenger revenues were generated by LATAM Pass members.
Fuel Cost Impact and Financial Metrics
The quarter’s performance took place in an environment impacted by upward pressure on operational input costs. Fuel expenses reached US$1.712 billion, marking a 93.1% surge compared to Q2 2025, while the average price paid per gallon (including hedges) escalated by 81.3%.
Despite this cost pressure, the group posted an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of US$713 million and an adjusted operating margin of 5.4%.
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“Second-quarter results demonstrate the structural strength of the group, its customer value proposition, and its ability to navigate a volatile and uncertain macro environment,” stated Ricardo Bottas, CFO of LATAM Airlines Group. “LATAM’s diversified business model—supported by premium revenues, integrated cargo and loyalty businesses, and strong balance sheet health—provided the foundation to sustain profitability even during a seasonally weaker quarter facing unprecedented fuel price pressures.”
Liquidity Position and Leverage
In terms of cash flow and capital structure, LATAM closed the quarter with the following balance sheet metrics:
- Adjusted Operating Cash Flow: US$473 million.
- Cash and Cash Equivalents: US$2.651 billion.
- Total Liquidity: US$4.226 billion (including committed credit lines), equivalent to 26.2% of trailing twelve-month (TTM) revenues.
- Adjusted Net Leverage: 1.5x, well below the target limit of 2.0x established in its financial policy.
In addition, shareholders approved a new share buyback program for up to 5% of outstanding shares, executable over a period of up to five years subject to Board discretion and applicable Chilean securities regulations.
Fleet Expansion and Embraer E195-E2 Induction
During the quarter, LATAM took delivery of nine aircraft (including two widebodies), ending the period with a total fleet of 383 aircraft. The group’s fleet combines Boeing (767, 777, 787) and Airbus (A321, A321neo, A320, A320neo, A319, and A330 under short-term ACMI/lease agreements) aircraft, alongside 20 freighters operated by LATAM Cargo Chile, LATAM Cargo Colombia, and LATAM Cargo Brazil.
As part of its growth strategy in the Brazilian market, LATAM Airlines Brazil announced the first phase of operations featuring its new fleet of Embraer E195-E2 aircraft:
- Timeline: Up to 14 aircraft will be inducted between November 2026 and March 2027.
- Route Network: They will operate 42 routes, adding four new regional destinations: Cabo Frio (RJ), Ji-Paraná (RO), Macaé (RJ), and Rondonópolis (MT).
- Network Reach: The Brazilian subsidiary will reach 67 domestic destinations (compared to 44 operated in 2019), marking the largest domestic route network in its history.
- Evaluation Phase: LATAM Airlines Brazil is evaluating up to 18 additional new destinations for a projected second phase of expansion in 2027, subject to aircraft delivery timelines from manufacturer Embraer.
Updated Outlook (2026 Guidance)
Based on recent operational performance and a more favorable fuel price curve projected toward year-end, LATAM reinstated the full range of its guidance parameters for full-year 2026:
- Capacity (ASK): Projected growth between 9% and 10% compared to 2025.
- Adjusted EBITDA: Estimated between US$4.100 billion and US$4.400 billion.
- Year-End Liquidity: Projected at US$4.700 billion or higher.
- Adjusted Net Leverage: Projected at 1.6x or lower.
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