LATAM Airlines Group S.A.
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Range $70 – $72.6
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About the company
LATAM Airlines Group S. A. , encompassing its various subsidiaries, specializes in providing both passenger and freight air transport services.
- CEO
- Roberto Alvo Milosawlewitsch
- IPO
- 2024
- Employees
- 42,082
- HQ
- Santiago de Chile, SA, CL
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $14.50B
- P/E
- 9.37
- Fwd P/E
- 10.98
- PEG
- 0.22
- P/S
- 0.91
- P/B
- 7.26
- EV/EBITDA
- 5.60
- Div Yield
- 3.01%
- Gross Margin
- 26.98%
- Op Margin
- 15.06%
- Net Margin
- 9.85%
- ROE
- 98.01%
- ROIC
- 17.36%
Latest fiscal year · YoY change
- Revenue
- $14.27B+11.2%
- Gross Profit
- $4.16B+27.3%
- Op Income
- $2.34B
- Net Income
- $1.46B+49.4%
- EPS
- $5.00+56.3%
- OCF Growth
- +5.0%
- FCF Growth
- -11.8%
- 52W High
- $70.42
- 52W Low
- $41.41
- 50D MA
- $54.10
- 200D MA
- $52.92
- Beta
- 0.89
- RSI (14)
- 40
- Avg Volume
- 766.83K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
LATAM Airlines delivered a profitable Q2 despite an extreme jet fuel shock, and raised full-year 2026 guidance as fuel assumptions improved.· August 5, 2026
- Q2 revenue rose almost 28% year over year to nearly $4.2 billion, helped by passenger revenue up 28% and cargo revenue up almost 22%.
- Adjusted operating margin was 5.4% and net income was $125 million, despite all-in average fuel price rising more than 80% year over year and total fuel costs up 93%.
- Capacity grew 8.9% while consolidated load factor stayed healthy at 81.8%, and consolidated passenger RASK increased 17.5%.
- LATAM highlighted premium and loyalty strength: Premium revenue was 29% of passenger revenue, and more than 67% of passenger revenues came from LATAM Pass members.
- Management lifted 2026 guidance, now expecting capacity growth of 9% to 10%, revenue of $17.3 billion to $17.7 billion, adjusted EBITDA of $4.1 billion to $4.4 billion, liquidity of at least $4.7 billion, and adjusted net leverage at or below 1.6x.
LATAM reported nearly $4.2 billion of revenue in Q2 2026, up almost 28% year over year. Passenger revenue grew 28%, cargo revenue grew almost 22%, adjusted costs excluding fuel increased 14%, and total fuel costs increased 93% as the all-in average fuel price including hedge rose more than 80% year over year. Adjusted operating margin was 5.4%, net income was $125 million, capacity grew 8.9%, and consolidated load factor was 81.8%. Adjusted operating cash flow was $476 million, ending net cash variation was positive $110 million, liquidity was more than $4.2 billion, and adjusted net leverage was 1.5x. For full-year 2026, LATAM reinstated the full set of guidance metrics and improved outlook versus prior guidance. Capacity is expected to grow 9% to 10%, revenue is expected between $17.3 billion and $17.7 billion, adjusted EBITDA is expected between $4.1 billion and $4.4 billion, passenger CASK ex fuel is expected to remain between $0.045 and $0.047, year-end liquidity is expected to be at least $4.7 billion, and adjusted net leverage is projected to be at or below 1.6x. Management also said Q3 and Q4 average fuel assumptions are now $147 per barrel and $130 per barrel, respectively, versus prior assumptions of $170 and $150.
Roberto Alvo said Q2 was a strong demonstration of LATAM’s resilience in one of the sharpest jet fuel cost spikes in recent years. He emphasized that the company’s outcome was not driven by a single initiative but by a more diversified model, customer preference, premium mix, LATAM Pass, commercial flexibility, and a strong balance sheet. His tone was cautious on fuel volatility, but confident that the group has the tools and discipline to navigate a dynamic second half.
Ricardo Dourado focused on the numbers behind the quarter: fuel costs were the main headwind, with the all-in fuel price up more than 80% year over year and total fuel costs up 93%. Even so, the company generated $476 million of adjusted operating cash flow, ended with more than $4.2 billion of liquidity, and kept adjusted net leverage at 1.5x. He also explained that the updated 2026 guidance reflects better fuel assumptions and that the change in passenger CASK ex fuel guidance is mainly driven by FX assumptions, especially the Brazilian real.
Analysts asked about international demand, tax credits, 2027 capacity and fare durability, Brazil’s credit line, domestic Brazil versus Spanish-speaking capacity guidance, fuel hedging losses, competitive conditions in Brazil, the Embraer E2 strategy, dividends versus buybacks, cost dilution from growth, and leverage timing. Management said international demand was solid overall, with Europe strong, some U.S. weakness improving, Argentina softer, and World Cup effects weighing on June. On hedging, Ricardo said the Q2 negative result came mainly from premiums paid for calls and that Q3 protection is lower than Q2; on capital allocation, management said growth comes first, then financial policy, then excess cash can go to dividends, buybacks, or debt actions.
The bull case from this call is that LATAM proved it can stay profitable and generate cash even under a severe fuel shock, while still raising prices and preserving demand. Premium revenue, LATAM Pass engagement, and the Embraer E2 rollout all support the view that the revenue mix and network can improve further over time.
The main risks are ongoing fuel volatility, which management said they do not expect to ease quickly, and the fact that Q2 margins were achieved in what they called the seasonally weakest quarter. Management also pointed to weaker domestic Chile conditions, some softness in Argentina and on certain U.S. South America routes, and acknowledged that hedging can create near-term negative premium impacts.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 100.0%
- Shares Outstanding
- 287.20M
- Float Shares
- 287.11M
of shares held by institutions
174 13F filers
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Newport Trust Co | 3.24M | 0 |
| Ninety One Uk Ltd | 1.81M | ▲ 1.81M |
| Morgan Stanley | 1.74M | ▼ 213.05K |
| Robeco Institutional Asset Management B.V. | 1.45M | ▼ 671.53K |
| Citadel Advisors LLC | 1.28M | ▼ 139.25K |
| Alliancebernstein L.P. | 1.18M | ▼ 22.25K |
| Spx Gestao De Recursos Ltda | 1.05M | ▲ 164.66K |
| Two Sigma Investments, LP | 933.78K | ▼ 414.43K |
| Renaissance Technologies LLC | 918.40K | ▼ 348.80K |
| William Blair Investment Management, LLC | 808.63K | ▼ 72.83K |
| Inca Investments LLC | 807.08K | 0 |
| Vanguard Group Inc | 794.35K | ▼ 245.06K |
Held by 93 ETFs
Biggest fund positions in LTM by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 10, 15 | KOZIKOWSKI TAMARA A | other | 3,283 |
| Jun 10, 15 | KOZIKOWSKI TAMARA A | sell | 54,687 |
| Jun 10, 15 | Jackson Guy C. | sell | 26,538 |
| Jun 10, 15 | EUGSTER JACK W | sell | 33,280 |
| Jun 10, 15 | BATEMAN GILES H | sell | 24,789 |
| Jun 10, 15 | Akradi Bahram | sell | 1,386,962.552 |
| Jun 10, 15 | Akradi Bahram | sell | 1,052,965.448 |
| May 15, 15 | Akradi Bahram | other | 60,000 |
| Mar 2, 15 | KOZIKOWSKI TAMARA A | sell | 4,000 |
| Mar 2, 15 | Akradi Bahram | sell | 20,000 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our LTM coverage
Recent articles, reports, and earnings notes.
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Analysts Set LATAM Airlines Group S.A. (NYSE:LTM) PT at $66.27
defenseworld.net · Aug 17
Bank of New York Mellon Corp Takes $746,000 Position in LATAM Airlines Group S.A. $LTM
defenseworld.net · Aug 15
LATAM Airlines July 2026 Traffic Improves Year Over Year
zacks.com · Aug 12
Best Value Stocks to Buy for August 10th
zacks.com · Aug 10
LATAM Airlines Group Q2 Earnings Call Highlights
marketbeat.com · Aug 8
LATAM (LTM) Reports Q2 Earnings: What Key Metrics Have to Say
zacks.com · Aug 4
LATAM Airlines lifts 2026 earnings outlook as fuel price pressure eases
reuters.com · Aug 4
LATAM Airlines Group SA (LTM) Stock Up 3.6% but GF Value Says Overvalued -- GF Score: 71/100
gurufocus.com · Jul 30
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