| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | 9.4x | 17.8x | Top tier | |
Growth | 68 | 20.4% | 7.1% | Top tier | |
Quality | 86 | 23.4% | 4.5% | Top tier | |
Safety | 49 | 2.9x | 2.6x | Around median | |
Capital Return | 38 | 0.00% | 2.12% | Bottom tier | |
Momentum | 45 | 18.5% | 2.9% | Around median | |
Sentiment | 47 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
LATAM Airlines Group operates an airline network combining passenger transportation, air cargo, the LATAM Pass loyalty ecosystem, and other ancillary revenues. The model is built on a network connecting South American markets with four continents, with a key presence in Brazil through Guarulhos, Brasilia, Fortaleza, and Congonhas. In Q2 FY2026, premium cabins accounted for 29% of passenger revenue, while LATAM Pass members generated more than 67% of passenger revenue, highlighting the role of loyal, less price-sensitive customers in the quality of the revenue mix.
In Q2 FY2026, revenue increased by approximately 28% year over year to nearly $4.2 billion, supported by 28% growth in passenger revenue and approximately 22% growth in cargo revenue. Consolidated capacity increased 8.9%, and the load factor reached 81.8% versus 83.5% in the comparable period, while passenger revenue per available seat kilometer increased 17.5%. Despite an increase of more than 80% in the average hedged fuel price and a 93% rise in total fuel costs, the group achieved an adjusted operating margin of 5.4% and net income of $125 million.
FY2025 results show a broader earnings base before the fuel shock in Q2 FY2026; revenue reached $14.3 billion, gross profit $4.2 billion, and net income $1.5 billion. This compares with revenue of $12.8 billion, gross profit of $3.3 billion, and net income of $977.4 million in FY2024, and revenue of $11.6 billion and net income of $581.5 million in FY2023. These figures reflect consecutive growth in revenue, gross profit, and net income during FY2023–2025.
The analyst consensus on LTM stock is neutral, with an average target of $71.3 and a narrow range of between $70 and $72.6. The average target and highest target are slightly above the 52-week range high of $70.42, while the annual range extends to a low of $41.41; this valuation balances the increase in FY2026 EBITDA guidance against ongoing fuel and currency risks and the decline in the load factor.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached nearly $4.2 billion, an increase of approximately 28% year over year, with passenger revenue growing 28% and cargo revenue growing approximately 22%. Consolidated capacity increased 8.9%, while the load factor reached 81.8% versus 83.5% in the comparable period. Despite a 93% increase in total fuel costs, the company achieved an adjusted operating margin of 5.4% and net income of $125 million.
On the August 5, 2026 call, LATAM forecast revenue of between $17.3 billion and $17.7 billion and adjusted EBITDA of between $4.1 billion and $4.4 billion. The company raised the midpoint of its previous EBITDA guidance by $250 million and expects capacity growth of between 9% and 10%. It also targets liquidity of at least $4.7 billion and adjusted net leverage not exceeding 1.6 times by the end of FY2026.
In Q2 FY2026, the average hedged fuel price increased by more than 80% year over year, and its total cost jumped 93%. Management estimated the additional impact of higher fuel at more than $700 million in that quarter, but pricing measures helped increase passenger revenue per available seat kilometer by 17.5%. The company's guidance assumes an average fuel price of $147 per barrel in Q3 FY2026 and $130 in Q4 FY2026.
Automated analysis for informational purposes only — not investment advice.
LATAM Airlines Brazil expects to receive its first 12 Embraer E2 aircraft between October and December 2026 and begin commercial operations on November 3, 2026. The initial deployment will cover 42 domestic routes, including eight new routes, expanding the network to 67 domestic destinations versus 44 in 2019. The company intends to use the aircraft to align capacity with demand, add frequencies, and serve airports that are unsuitable for A320 or A319 aircraft, while it was evaluating up to 18 additional potential bases for expansion as further aircraft are delivered beginning in early 2027.
In Q2 FY2026, premium cabins represented 29% of passenger revenue and grew faster than main-cabin revenue. LATAM Pass members generated more than 67% of passenger revenue, up from 60% previously. The number of Elite members also increased 26% year over year, and third-party sales generated by this segment increased 48% compared with Q2 FY2025.
LATAM ended Q2 FY2026 with more than $4.2 billion in liquidity, equivalent to 26.2% of last 12 months' revenue, and adjusted net leverage of 1.5 times. It generated $476 million in adjusted operating cash flow during the quarter, with a positive cash change of $110 million after dividend distributions. In August 2026, shareholders approved a program allowing the repurchase of up to 5% of the shares over a period not exceeding five years, but the approval does not mean the full amount will be executed because the board of directors determines the timing, mechanisms, and terms.
