LATAM Airlines Group (LTM) Q3 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in Q3 2025, transporting 22.9 million passengers with 9.3% capacity growth and a consolidated load factor of 85.4%.

• Achieved fourth consecutive quarter of year-over-year margin expansion, reflecting disciplined cost management and structurally sound results.

• Net income attributable to owners reached $379 million for the quarter, up 25.8% year-over-year; year-to-date net income hit $1.0 billion.

• Announced acquisition of up to 74 Embraer E2 aircraft, with 24 firm orders and deliveries starting in 4Q26, supporting network expansion and sustainability.

• Recognized as APEX Five Star Global Airline for the fourth consecutive year and Air Cargo Airline of the Year 2025.

Financial highlights

• Total revenues reached $3,856 million, up 17.3% year-over-year; passenger revenues rose 18.5% and cargo revenues increased 6.3%.

• Adjusted EBITDAR was $1,150 million, up 38.9% year-over-year, with a margin of 29.8%.

• Adjusted operating income reached $698 million, up 51.6% year-over-year, with an 18.1% margin.

• Adjusted operating cash flow was $859 million; quarter-end liquidity stood at $3.6 billion (25.8% of LTM revenues).

• Adjusted passenger CASK ex-fuel increased 11.6% to 4.4 US¢; passenger RASK rose 8.4% to 7.6 US¢.

Outlook and guidance

• Full-year 2025 guidance for adjusted EBITDAR raised to $4.00–$4.10 billion, with adjusted operating margin guidance at 16.0–16.5%.

• Revenue guidance raised to $14.4–$14.5 billion; adjusted operating income to $2.30–$2.40 billion.

• Projected ASK growth of 8.0–9.5% for 2025; domestic Brazil ASK growth at 10.0–10.5%.

• Adjusted levered free cash flow expected to exceed $1.5 billion; net debt/EBITDAR targeted at ≤1.4x.

• Targeting high single-digit capacity growth for 2026.