EL7.AI
StocksMediumUpdated×2•Originally published 3 November 2026•Updated 3 November 2026•
2 min read

LATAM Cuts 2026 Profit Outlook as Fuel Costs Continue to Pressure Operating Plans

Key Facts

1September passenger traffic grew 6.2% year over year, and the consolidated load factor reached 83.1%.
2In August, LATAM projected capacity growth of 9% to 10% for 2026 and adjusted profit of $4.1 billion to $4.4 billion.
3The chief executive estimated that a $10-per-barrel fuel move adds an annual impact of about $370 million, with annual consumption of 36 million to 38 million barrels.
4Second-quarter revenue was $4.183 billion, up 27.6%, while adjusted EBITDA was $713 million, down 16.1%.

LATAM reported third-quarter results on November 3 and cut its full-year adjusted profit outlook, signaling that higher jet fuel prices continue to affect the company’s finances and operating plans. August guidance had projected capacity growth of 9% to 10% in 2026 and adjusted profit of $4.1 billion to $4.4 billion. On October 20, Chief Executive Roberto Alvo said the company had canceled additional capacity because of higher fuel prices and still expected growth within the previous range, but near its lower end. The November announcement pairs an updated profit outlook with a lower capacity forecast, after management focused in October on managing the pressure by adjusting flights. Management is scheduled to discuss third-quarter results on a call on November 4 at 8:00 a.m. Eastern Time and 10:00 a.m. Santiago time.

Alvo’s estimates show how sensitive results are to changes in fuel prices. In an interview on October 20, he said a $10-per-barrel price move translates into an annual cost impact of about $370 million. He estimated the group’s annual jet fuel consumption at about 36 million to 38 million barrels. He also said LATAM had canceled more capacity because of higher prices, while it still expected growth near the lower end of its August range. This means the capacity reduction was part of the company’s response to cost pressure, while the update to the full-year profit outlook remained a focus of the November results disclosure.

September operating statistics showed passenger traffic, measured in revenue passenger kilometers, rose 6.2% from the same month a year earlier, while the consolidated load factor was 83.1%. These indicators provide context on demand and seat utilization in the final month of the third quarter. In second-quarter results announced by the company in August, revenue was $4.183 billion, up 27.6% year over year, while adjusted EBITDA was $713 million, down 16.1%. The contrast between revenue growth and a decline in adjusted profit in the second quarter underscores the importance of operating costs in assessing the full-year outlook update. LTM shares closed at $44.69 on November 2, a price recorded before the third-quarter results announcement.

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