LATAM Airlines trims earnings outlook as fuel costs bite
LTM•LATAM Airlines cut its adjusted EBITDA outlook to $3.9 billion-$4.05 billion from $4.1 billion-$4.4 billion, as higher fuel costs squeezed margins. It raised its 2026 revenue forecast to $17.6 billion-$17.8 billion after third-quarter revenue reached $4.57 billion and net profit rose 16% to $441 million.
1. Outlook revised
LATAM Airlines lowered its adjusted EBITDA forecast to $3.9 billion-$4.05 billion from $4.1 billion-$4.4 billion previously, while raising its 2026 revenue outlook to $17.6 billion-$17.8 billion from $17.3 billion-$17.7 billion.
2. Fuel weighs on results
Third-quarter revenue was $4.57 billion, broadly in line with analysts’ estimates, and adjusted EBITDA of $1.10 billion topped the $1.05 billion consensus. Net profit rose 16% to $441 million. Average fuel prices jumped more than 50% from a year earlier, costing the company about $520 million in the quarter and sharply dragging down adjusted operating margin.
3. Capacity plans
The company said passenger and cargo demand remained resilient, but airlines had limited ability to pass higher fuel costs on to travelers. Chief Executive Roberto Alvo said last month that LATAM had begun trimming some planned flying and was tracking toward the lower end of its capacity-growth target as fuel prices stayed high.
