LATAM Airlines Group (LTM) Q3 2025 earnings summary

Executive summary

• Transported 22.9 million passengers in Q3 2025, with consolidated load factor at 85.4% and capacity up 9.3% year-over-year.

• Achieved strong operational and financial results, with disciplined execution, cost control, and premium customer experience supporting profitable growth.

• Net income reached $379 million for the quarter, up 25.8% year-over-year, and $1.0 billion year-to-date.

• Announced acquisition of up to 74 Embraer E2 aircraft, with 24 firm orders and deliveries starting in 2026, 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 billion, up 17.3% year-over-year; passenger revenues rose 18.5% and cargo revenues up 6.3%.

• Adjusted EBITDAR was $1.15 billion, up 38.9% year-over-year, with a margin of 29.8%.

• Adjusted operating margin expanded to 18.1%, up 4.1pp from 3Q24.

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

• Adjusted passenger CASK ex-fuel at 4.4 US¢, showing cost containment.

Outlook and guidance

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

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

• Revenues expected at $14.4–$14.5 billion; adjusted levered free cash flow expected to exceed $1.5 billion.

• Net debt/adjusted EBITDAR targeted at ≤1.4x; year-end leverage forecasted at 1.4x.

• Adjusted passenger CASK ex-fuel updated to $4.35–$4.40 due to FX effects.