LATAM Airlines Group (LTM) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $1.5 billion for 2025, up 49.4% year-over-year, with a net income margin of 11.2% and EPS of $4.95.

• Transported over 87 million passengers, with a capacity increase of 8.2% for the year and a healthy load factor of 84.4%.

• Expanded network with 22 new routes (15 international), and grew fleet to 371 aircraft with 26 new deliveries.

• Achieved record Net Promoter Score of 54 and Organizational Health Index of 83, entering the top decile for the first time.

• Recognized with multiple international awards for customer experience, operational excellence, and brand improvement.

Financial highlights

• Full-year net income reached $1.5 billion (+50% YoY), with EPS of $4.95 and adjusted EBITDAR of $4.1 billion (+31.6% YoY).

• Q4 revenues were $3.95 billion (+16.3% YoY), with net income of $484 million (+78.1% YoY); passenger revenue rose 20.3% while cargo revenue declined 9.6%.

• Adjusted operating margin for 2025 was 16.2%, up 3.5pp YoY; Q4 margin was 16.7%.

• Adjusted operating cash flow for 2025 was $3.3 billion, with $1.4 billion in cash generated after all business commitments.

• Total revenues for 2025 reached $14.5 billion, up 11.2% from 2024.

Outlook and guidance

• 2026 guidance projects revenue of $15.5–$16.0 billion, capacity growth of 8–10%, and adjusted operating margin of 15–17%.

• Adjusted leveraged free cash flow expected to exceed $1.7 billion, with liquidity projected above $5 billion by year-end 2026.

• CapEx for 2026 is planned at $1.7 billion (net of financing), with 41 aircraft deliveries expected.

• Net leverage targeted at or below 1.4x, with net debt below $6.2 billion.

• $1–$1.6 billion available for additional capital allocation initiatives after CapEx and minimum dividends.