LTM stock forecast, quote, news & analysis

Key Takeaways

• LATAM Airlines Group is Latin America's largest airline, posting third-quarter 2026 net income of US$441 million, up 16.3% year over year, on revenue of US$4.57 billion, up 18.4%.
• A 52% year-over-year surge in average jet fuel prices added roughly US$520 million in quarterly costs and compressed the adjusted operating margin to 12.5% from 18.1% a year earlier.
• S&P Global Ratings and Fitch Ratings each upgraded LATAM to BB+, while the group's secured bonds reached investment-grade status at BBB-.
• Premium-cabin revenue grew 23% and the LATAM Pass loyalty program reached 57 million members, supporting a 9.4% rise in passenger unit revenue.
• Management raised its 2026 revenue guidance while trimming its adjusted EBITDA outlook, citing an assumed fourth-quarter fuel price of US$180 per barrel.
• For additional detail on valuation and forward expectations, explore LATAM's Price Targets, Earnings, and Forecast pages.
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Current Market Snapshot

LTM shares were trading near US$48 in early November, a decline of roughly 8% from the closing level around US$52 recorded in early October. The pullback came despite broadly positive third-quarter results, as investors weighed a sharp rise in fuel costs against otherwise resilient demand. The stock's recent range reflects the tension between LATAM's strong commercial execution and the near-term earnings pressure from elevated jet fuel prices, a dynamic that has also tempered sentiment across the broader airline sector.

LATAM Airlines Group (LTM) Business Overview and Competitive Position

Headquartered in Santiago, Chile, LATAM Airlines Group is the largest airline group in Latin America, formed from the 2012 merger of LAN Airlines and TAM Airlines. The company operates an extensive passenger and cargo network connecting South America with North America, Europe, Africa, and Oceania, anchored by key hubs in Santiago, São Paulo, Lima, Bogotá, and Guayaquil. Its ecosystem spans the mainline carrier, LATAM Cargo, and the LATAM Pass loyalty program.

LATAM's competitive strengths include its regional scale, dominant hub positions, a differentiated premium product, a long-standing joint venture with Delta Air Lines (DAL), and a disciplined cost structure. As of the end of September 2026, the group operated a fleet of 390 aircraft while advancing a fleet renewal program built around Airbus neo-family aircraft and new Embraer (ERJ) E195-E2 jets. Investors follow LTM as a bellwether for Latin American travel demand and for its post-restructuring turnaround following its 2022 emergence from Chapter 11.

Recent Developments Driving LTM

LATAM reported third-quarter 2026 results on November 3, with net income of US$441 million, up 16.3% year over year, and total revenue of US$4.567 billion, up 18.4%. Passenger revenue rose 17.8% to US$4.0 billion on a 7.7% capacity expansion and a 9.4% increase in passenger unit revenue, while cargo revenue grew 19.5% to US$483 million. Premium-segment revenue climbed 23%, outpacing main-cabin growth and reflecting the strength of the group's network and loyalty base.

The quarter's defining challenge was fuel. Average all-in jet fuel prices rose 52.1% year over year, contributing an estimated US$520 million in additional cost and reducing the adjusted operating margin to 12.5% from 18.1%. Non-fuel unit costs remained contained, with passenger CASK ex-fuel up only 3.5%. Credit profiles improved meaningfully, with S&P Global Ratings and Fitch Ratings upgrading LATAM to BB+ and its secured bonds to investment-grade BBB-. The group also repurchased 0.65% of its share capital under its authorized program and ended the quarter with US$4.4 billion in liquidity and adjusted net leverage of 1.5 times.

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2026 Outlook and What Investors Should Watch

LATAM's updated full-year 2026 guidance points to revenue of US$17.6 billion to US$17.8 billion and adjusted EBITDA of US$3.9 billion to US$4.05 billion, with the midpoint of the EBITDA range slightly below its prior outlook as fuel costs remain elevated. The company assumes a fourth-quarter jet fuel price of US$180 per barrel and has indicated it expects more than US$2 billion in incremental fuel costs for the year.

Key factors to monitor through the remainder of 2026 include the trajectory of jet fuel prices, the pace of capacity deployment, and currency movements in the Brazilian real and Chilean peso, which affect a meaningful share of operating costs. Fleet deliveries continue, with the first Embraer E195-E2 aircraft scheduled to enter Brazilian domestic service in late November. LATAM's Investor Day, scheduled for December 14, 2026, is expected to provide additional detail on capacity, capital allocation, and the group's path toward further balance-sheet improvement. Credit-rating momentum and sustained premium demand remain central to the investment narrative, while fuel costs and macroeconomic conditions in Latin America represent the principal near-term risks.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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