LATAM Airlines Group (LTM) Q3 2026 earnings summary

Executive summary

• Revenue rose 18.4% YoY to $4.567B; adjusted operating margin was 12.5% despite a $520M fuel-price impact vs. 3Q25.

• Capacity grew 7.7%, passenger unit revenue rose 9.4%, and consolidated load factor was 83.7%.

• Adjusted EBITDA was $1.095B, down 4.7% YoY as higher fuel costs pressured results.

Financial highlights

• Net income increased 16.3% YoY to $441M; Q3 2025 interest expense included a $105M one-time liability-management charge.

• Adjusted operating income was $573M, down 17.9% YoY; adjusted EBITDA margin was 24.0%, down from 29.8%.

• Passenger revenue rose 17.8% to $3.998B; cargo revenue increased 19.5% to $483M.

• Adjusted operating cash flow was $878M; ending cash was $2.871B and liquidity was $4.446B.

Outlook and guidance

• FY26 guidance: revenue $17.6B–$17.8B; adjusted EBITDA $3.90B–$4.05B; adjusted operating income $1.90B–$2.05B and margin 10.5%–11.5%.

• Adjusted EBITDA margin guidance is 22%–23%; adjusted levered free cash flow is at least $1.2B.

• FY26 ASK growth guidance: total 8.5%–9.5%, domestic Brazil 7.5%–8.5%, domestic Spanish-speaking countries 4.0%–5.0%, and international 10.5%–11.5%.

• Guidance assumes jet fuel at $155/bbl for FY26 and $180/bbl for Q4; BRL/USD assumptions are 5.2 for FY26 and 5.3 for Q4.

• 2027 fleet plan includes 30 deliveries and 13 older-aircraft retirements, with potential capacity growth up to high single digits subject to fuel prices and profitable opportunities.