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LATAM Airlines Reports $576 Million Net Profit in Q1 2026 and Revises Full-Year Guidance

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LATAM Airlines Group has launched 2026 on a solid financial footing, reporting a net profit of US$576 million for the first quarter. This performance is underpinned by a 10.4% year-over-year increase in capacity and a business model that has proven resilient amid global economic volatility and rising operating costs.

Operational Performance and Sustained Growth

During the first three months of the year, the group transported 22.9 million passengers, representing a 9.1% increase compared to the same period in 2025. This momentum was primarily driven by the domestic market of LATAM Airlines Brazil and a robust performance in the international segment.

Key operational indicators for the quarter include:

  • Load Factor: The group achieved a consolidated load factor of 85.3%.
  • Cargo Segment: Cargo subsidiaries moved over 250,000 tonnes, solidifying their leadership in flower exports from Colombia and Ecuador to the United States.
  • Operating Margin: The company recorded an adjusted operating margin of 19.8%.

Financial Strength Amid External Challenges

Despite facing a headwind of approximately US$40 million due to surging jet fuel prices, Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached US$1.315 billion.

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Cash management efforts generated US$391 million, maintaining total liquidity at over US$4.1 billion, equivalent to 27% of revenue over the last 12 months. According to Ricardo Bottas, CFO of LATAM Airlines Group, this efficient cost structure and diversified network provide the necessary flexibility to manage market uncertainty for the remainder of the year.

2026 Guidance Update

Due to market volatility and revised macroeconomic assumptions, LATAM has updated its year-end projections:

  • Adjusted EBITDA: Estimated between US$3.8 billion and US$4.2 billion.
  • Adjusted Cost per Available Seat Kilometer (CASK): For the passenger segment (excluding fuel), projected between 4.50 and 4.70 cents.
  • Leverage: An adjusted net leverage ratio equal to or less than 1.8x is anticipated.
  • Liquidity: The group expects to end the year with liquidity greater than or equal to US$4.5 billion.

These revised figures account for an increase in aviation fuel prices, projected at US$170 per barrel for the second and third quarters, and a revision of the Brazilian exchange rate to 5.15 BRL/USD.

Mitigation Strategy

To offset the additional fuel expenditure—expected to exceed US$700 million in the second quarter alone—the airline will implement revenue management measures, targeted capacity adjustments, strict cost controls, and its financial hedging policy.

Strategic Milestones and Sustainability

Beyond financial results, LATAM continues to strengthen its value proposition and commitment to excellence:

  • Service Recognition: It became the first Latin American carrier to earn a 4-star rating in the Skytrax World Airline Star Rating.
  • Fleet and Premium Experience: The group announced that its future Airbus A321XLR fleet will feature a revamped Premium Business cabin, equipped with full-flat seats and individual doors for enhanced privacy.
  • Sustainability Leadership: S&P Global ratified LATAM as the fifth most sustainable airline worldwide and the first in the Western Hemisphere for the second consecutive year.
  • Maintenance Partnership: LATAM Airlines Brazil and Delta Air Lines signed a long-term agreement for Maintenance, Repair, and Overhaul (MRO) services at the São Carlos facility in Brazil, focusing on the A320 family.

With these results, LATAM Airlines Group reaffirms its leadership position in the region, balancing operational expansion with the financial discipline required to navigate a rising cost environment without compromising service standards.

Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.

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