LATAM Airlines Group (NYSE:LTM) Issues Earnings Results

LATAM Airlines Group (NYSE:LTM) released its earnings results on Wednesday. The transportation company reported $1.69 EPS for the quarter, beating the consensus estimate of $1.35 by $0.34, Zacks reports. LATAM Airlines Group had a net margin of 8.99% and a return on equity of 136.76%. The firm had revenue of $3.95 billion for the quarter, compared to analysts’ expectations of $3.81 billion.

Here are the key takeaways from LATAM Airlines Group’s conference call:

• LATAM reported strong full‑year results with Adjusted EBITDA of ~$4.1 billion, a 16.2% adjusted operating margin and net income of about $1.5 billion (EPS $4.95), with Q4 showing double‑digit revenue and margin improvement.
• Operational expansion: the group carried ~87 million passengers in 2025, grew capacity ~8.2%, increased fleet to 371 aircraft (26 deliveries) and guided 2026 capacity growth of 8–10% with 41 aircraft expected.
• Balance sheet and cash generation strengthened: year‑end liquidity was $3.7 billion, adjusted net leverage ~1.5x, weighted average cost of debt fell to ~6.6%, and management completed $585M of buybacks while guiding to >$5B liquidity and >$1.7B adjusted leveraged free cash flow in 2026.
• The company advanced a $400 million interim dividend in December, which led reported net debt (~$5.9B) to be ~8% above prior guidance because the guidance had not assumed the early dividend payment.
• Customer and premium momentum: record NPS of 54 and an Organizational Health Index of 83, while premium travel accounted for ~23% of passenger revenue and continues to grow faster than total passenger revenues.

LATAM Airlines Group Stock Down 5.4%

Shares of NYSE:LTM opened at $64.10 on Thursday. The firm has a market cap of $19.37 billion, a price-to-earnings ratio of 15.30, a PEG ratio of 0.47 and a beta of 3.89. LATAM Airlines Group has a 12 month low of $26.36 and a 12 month high of $70.42. The company’s fifty day simple moving average is $56.50 and its 200 day simple moving average is $49.21.

Wall Street Analyst Weigh In

Several analysts have recently commented on LTM shares. Zacks Research raised LATAM Airlines Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 9th. Weiss Ratings reissued a “hold (c)” rating on shares of LATAM Airlines Group in a research report on Thursday, January 22nd. Wall Street Zen raised LATAM Airlines Group from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 22nd. The Goldman Sachs Group reiterated a “buy” rating and set a $58.50 target price on shares of LATAM Airlines Group in a research report on Friday, December 5th. Finally, Barclays reaffirmed an “overweight” rating and issued a $75.00 price target on shares of LATAM Airlines Group in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $66.75.

Hedge Funds Weigh In On LATAM Airlines Group

A number of institutional investors have recently added to or reduced their stakes in LTM. Arrowstreet Capital Limited Partnership increased its holdings in shares of LATAM Airlines Group by 248.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,484,669 shares of the transportation company’s stock worth $67,181,000 after acquiring an additional 1,058,554 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of LATAM Airlines Group by 266.7% during the 3rd quarter. Vanguard Group Inc. now owns 1,039,414 shares of the transportation company’s stock worth $47,033,000 after buying an additional 755,997 shares during the period. Two Sigma Investments LP raised its holdings in LATAM Airlines Group by 89.7% in the 3rd quarter. Two Sigma Investments LP now owns 954,224 shares of the transportation company’s stock valued at $43,179,000 after acquiring an additional 451,107 shares during the period. Burkehill Global Management LP acquired a new stake in LATAM Airlines Group during the third quarter worth approximately $42,988,000. Finally, Zimmer Partners LP acquired a new stake in LATAM Airlines Group during the third quarter worth approximately $37,331,000.

LATAM Airlines Group Company Profile

LATAM Airlines Group SA is a Chilean-based airline holding company formed in 2012 through the merger of LAN Airlines of Chile and TAM Linhas Aéreas of Brazil. The Group offers passenger and cargo air transportation services across South America and beyond, operating under a multi‐brand strategy that encompasses several nationally recognized carriers. Headquartered in Santiago, Chile, LATAM is structured to serve diverse market segments with full-service, premium and low‐cost offerings.

The core business activities of LATAM Airlines Group include scheduled domestic and international passenger flights, air cargo services and maintenance, repair and overhaul (MRO) capabilities through its technical divisions.