LATAM Airlines Group (LTM) Q1 2025 earnings summary

Executive summary

• Transported over 21 million passengers in Q1 2025, a 3.6% increase YoY, with capacity up 7.3% and load factor at 83.3%.

• Achieved record net income of $355 million (up 37.6% YoY), adjusted EBITDA/EBITDAR near $1 billion, and highest-ever Q1 margins.

• Customer satisfaction reached record NPS of 56, with premium traveler NPS at 61; loyalty program surpassed 50 million members.

• Continued investment in customer experience, including cabin modernization, expanded Wi-Fi, digital enhancements, and new business class suites.

• Nearly $450 million allocated to shareholder returns via $293 million dividend and $153 million share repurchase program.

Financial highlights

• Total revenues reached $3.41 billion, up 2.7% YoY; passenger revenue up 1.6%, cargo revenue up 9.8%.

• Adjusted EBITDA/EBITDAR of $962 million, up 20.9% YoY; margin expanded to 28.2%.

• Net income margin at 10.4% (+2.6pp YoY); adjusted operating margin at 16.8%.

• Adjusted costs rose only 1.6% despite 7.3% capacity growth; fuel costs declined 4.9% YoY.

• Cash generation of $189 million in Q1; ending cash balance at $2.15 billion.

Outlook and guidance

• Full-year 2025 guidance raised: adjusted operating margin 13%-15% (prior 12%-13.5%), adjusted EBITDA/EBITDAR $3.4-$3.75 billion (prior $3.25-$3.6 billion).

• Total ASK growth expected at 7.5–9.5% YoY; international ASK growth 9.5–11.5%.

• Year-end liquidity expected above $4.1 billion; adjusted leverage forecasted at or below 1.5x.

• Guidance based on $90/barrel jet fuel and 5.9 BRL/USD FX rate; upside possible if fuel/FX trends favorable.

• Guidance may be revised if macroeconomic conditions deteriorate.