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LATAM Airlines Group (LTM) investor relations material

LATAM Airlines Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary29 Jul, 2025

Executive summary

  • Achieved record second-quarter results with net income of $242M, up 66% year-over-year, and adjusted EBITDAR of $850M, reflecting strong execution and favorable fuel environment.

  • Transported over 20.5 million passengers, with capacity up 8.3% and consolidated load factor at 83.5%.

  • Customer satisfaction reached a record NPS of 56, supported by premium upgrades and multiple Skytrax awards.

  • Returned $445M to shareholders via dividends and share repurchases, highlighting capital allocation discipline.

  • Successfully refinanced $800M in high-interest debt, reducing annual interest costs by $33M.

Financial highlights

  • Total revenues grew 8.2% year-over-year to $3.28B, with passenger revenues up 8.5% and cargo revenues up 10.2%.

  • Adjusted EBITDA/EBITDAR reached $850M (25.9% margin), a 37.4% increase year-over-year.

  • Adjusted operating margin hit a record 12.9% for a second quarter, up 3.9pp from 2Q24.

  • Net income margin improved to 7.4%, a 2.6pp increase.

  • Adjusted CASK ex-fuel at $0.048–$0.047, aligned with full-year guidance.

Outlook and guidance

  • Updated 2025 guidance: revenue $14.0–$14.2B, adjusted operating margin 14–15%, adjusted EBITDAR margin 26–27%.

  • Total ASK growth expected at 8.5–10.5% for 2025.

  • Adjusted levered free cash flow projected above $1.3B.

  • Net debt/adjusted EBITDAR targeted at or below 1.5x.

  • Liquidity projected above $4.0B.

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Frequently asked questions

LATAM Airlines Group S.A. is a Chilean airline holding company and the largest in Latin America. It operates a broad network of passenger and cargo services, covering destinations across the Americas, Europe, Oceania, and Africa. The company provides both domestic and international flights through its subsidiaries in Argentina, Brazil, Chile, Colombia, Ecuador, and Peru. LATAM Airlines Group focuses on providing a range of services from economy to premium classes, ensuring connectivity and efficient travel options for both individuals and businesses. The company is headquartered in Santiago, Chile, and its shares are listed on the NYSE.

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