LATAM Airlines Profit Rises 16% to US$441M

CHILE · COMPANIES

LATAM Airlines, the Chilean group that flies across Latin America and to the United States, earned US$441 million in the third quarter of 2026, 16.3% more than a year earlier. Yet the company also cut its profit forecast for the year, because jet fuel now costs far more than it did.

For US readers, the result matters because LATAM’s shares trade in New York as American depositary receipts (ADRs), certificates that let US investors own foreign stock, under the ticker LTM. It also shows how an oil price swing reaches the profits of an airline that many travellers to South America use.

What Happened

LATAM published its third-quarter results on Tuesday 3 November 2026 in a filing with the US Securities and Exchange Commission (SEC), the American market regulator. Net income attributable to shareholders was US$441 million, against US$379 million in the same quarter of 2025, or US$1.54 per American depositary share (ADS).

Revenue rose 18.4% to US$4.57 billion, helped by higher revenue per seat and more flying. Capacity, which airlines measure in available seat-kilometres, grew 7.7%, while passengers rose a smaller 2.7% to 23.5 million.

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Why Profit Rose While Margins Fell

The headline profit hides a squeeze at the core of the business. Adjusted operating income, which strips out one-off items, fell 17.9% to US$573 million, and the margin shrank to 12.5% from 18.1%.

Adjusted EBITDA, a measure of operating cash earnings before depreciation and interest, slipped 4.7% to US$1.10 billion. That is a margin of 24.0%, down from 29.8% a year earlier.

Net income was helped by lower interest expense. Interest expense fell 29.0% to US$183 million, partly because the third quarter of 2025 carried a one-time US$105 million charge linked to a debt restructuring.

The Fuel Squeeze

LATAM said aircraft fuel cost rose 60.9% in the quarter, and the all-in price per barrel was 52.1% higher than a year earlier. The load factor, the share of seats filled, slipped 1.7 percentage points to 83.7% as capacity grew faster than passenger numbers.

Fares and cargo helped absorb part of the blow. Revenue per seat flown for passengers rose 9.4% to 8.3 US cents, and cargo revenue climbed 19.5% to US$483 million.

A Lower Forecast for 2026

The company now expects adjusted EBITDA of US$3.90 billion to US$4.05 billion for 2026, down from US$4.10 billion to US$4.40 billion in its August outlook. It expects an adjusted operating margin of 10.5% to 11.5%, against 12.0% to 13.0% before.

Revenue guidance moved the other way, to US$17.6 billion to US$17.8 billion from US$17.3 billion to US$17.7 billion. The plan assumes jet fuel at US$155 a barrel for the full year and US$180 a barrel in the fourth quarter.

LATAM also assumes no further payments to shareholders in 2026. It paid US$127 million in dividends in the first nine months, compared with US$293 million a year earlier, and settled US$85 million of share buybacks in the third quarter.

Cash, Debt and Credit Rating

At 30 September 2026 the airline held US$2.87 billion in cash and US$4.45 billion in total liquidity, meaning cash plus unused credit lines of US$1.58 billion. Net debt, meaning borrowings minus cash, was US$6.37 billion, or 1.5 times adjusted EBITDA, unchanged from the end of 2025.

Credit-rating agencies S&P Global Ratings and Fitch Ratings both raised LATAM’s rating one step to BB+, just below investment grade, with stable outlooks. The fleet stood at 390 aircraft on 30 September, with seven delivered in the quarter and the first two Embraer E195-E2 regional jets, built in Brazil, arriving in October.

What It Means for You

If you hold LTM through a US fund or brokerage account, the quarter shows a business that is growing sales but earning less on each dollar of them. The cut to the profit forecast and the lack of extra shareholder payments are the points to weigh, and this is not investment advice.

Travellers should expect fuel costs to stay a pressure on the airline. Our look at the airline’s second-quarter profit and its S&P rating upgrade give the earlier steps of this story.

For the local market picture, see our Chile market report. Visitors to the capital can use our Santiago city page.

What Is Not Known

It is not known how long fuel will stay near US$180 a barrel, which is the main assumption behind the lower forecast. We did not find how much of its fuel bill LATAM has locked in through hedges, meaning advance price contracts.

The company has not said whether it will resume shareholder payments in 2027. We also found no prediction market on LATAM’s results or share price.

More: Chile news in English, every day from The Rio Times.

Frequently Asked Questions

How Much Did LATAM Airlines Earn in the Third Quarter of 2026?

Net income attributable to shareholders was US$441 million, up 16.3% from US$379 million a year earlier. Revenue was US$4.57 billion, up 18.4%.

Why Did LATAM Cut Its 2026 Profit Forecast?

The company cited a tougher fuel outlook for the fourth quarter. It now assumes jet fuel at US$180 a barrel in that quarter and US$155 for the full year.

Can US Investors Buy LATAM Airlines Stock?

LATAM’s ADRs trade in New York under the ticker LTM. This is information, not a recommendation to buy or sell.

What Credit Rating Does LATAM Airlines Have?

S&P Global Ratings and Fitch both raised it to BB+ with stable outlooks. The company says its secured notes, bonds backed by specific assets, reached investment grade.

Sources: LATAM Airlines Group, third-quarter 2026 results (Form 6-K, US Securities and Exchange Commission), 3 November 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief