LATAM Airlines Group (LTM) Q1 2026 earnings summary

Executive summary

• Achieved record financial and operational results in 1Q 2026, with revenue of $4.15 billion and net income of $576 million, driven by strong demand, 10.4% capacity growth, and disciplined execution.

• Transported nearly 23 million passengers with a load factor of 85.3%, and premium revenues grew 28% year-over-year, now representing 27% of passenger revenues.

• Recognized as the only Latin American airline with a 4-star Skytrax rating and as the most sustainable airline group in the Western Hemisphere.

• Maintained a resilient business model leveraging network strength, premium offering, and loyalty program.

Financial highlights

• Total revenues rose 21.7% year-over-year to $4.15 billion, with passenger revenues up 24.4% and cargo revenues up 3.4%.

• Adjusted EBITDA reached $1.315 billion (+36.7% YoY), with a margin of 31.7%; adjusted operating margin was a record 19.8%.

• Net income increased 62.1% YoY to $576 million, with a net margin of 13.9%.

• Liquidity stood at $4.1 billion, with adjusted net leverage at 1.3x.

• Diluted EPS increased 70.7% YoY to $2.01 per ADS.

Outlook and guidance

• Updated 2026 guidance: adjusted EBITDA of $3.8–$4.2 billion, adjusted net leverage ≤1.8x, and liquidity ≥$4.5 billion.

• Passenger CASK ex-fuel expected between 4.50–4.70 US cents.

• Assumes jet fuel prices of $170/bbl for Q2/Q3 and $150/bbl for Q4; BRL/USD exchange rate at 5.15.

• Expects mid to low single-digit adjusted operating margin in Q2 2026.