LATAM Airlines Group (LTM) Q2 2026 earnings summary

Executive summary

• Achieved a 5.4% adjusted operating margin in Q2 2026 despite a 93% YoY increase in fuel costs, with revenues up 28% YoY to $4.2 billion, driven by strong commercial execution and resilient premium and cargo segments.

• Net income was $125 million, down 48.2% YoY, reflecting higher fuel and operating costs but maintaining profitability.

• Premium segment accounted for 29% of passenger revenues, and LATAM Pass members generated 67% of passenger revenues, with membership reaching 56 million.

• Capacity grew 8.9% YoY with a load factor of 81.8%, and 9 new aircraft were received, expanding the fleet to 383.

• Shareholders approved a share repurchase program for up to 5% of shares over five years.

Financial highlights

• Total revenues reached $4.2 billion (+28% YoY), with passenger revenues at $3.6 billion (+27.9% YoY) and cargo revenues at $510 million (+21.8% YoY).

• Adjusted EBITDA was $713 million (17.0% margin), down 16.1% YoY; adjusted operating income was $227 million, down 46.3% YoY.

• Adjusted costs ex-fuel increased 14%, and passenger CASK ex-fuel was $0.045 (4.5 US¢), up 5.6% YoY.

• Generated $476 million in adjusted operating cash flow and ended the quarter with liquidity of $4.2 billion (26.2% of LTM revenues).

• Net debt stood at $6.37 billion; adjusted net leverage remained at 1.5x.

Outlook and guidance

• Full-year 2026 guidance updated: adjusted EBITDA range raised to $4.1–4.4 billion, with revenue guidance of $17.3–$17.7 billion and capacity growth of 9–10%.

• Adjusted operating margin expected at 12–13%; net leverage projected at or below 1.6x; liquidity to end the year at least $4.7 billion.

• Guidance reflects improved jet fuel price assumptions and consistent execution.