LATAM says capacity growth tracking to lower end of guidance as fuel stays high
LTM•LATAM expects 2026 capacity growth of 9% to 10% to land near the lower end of its forecast after trimming planned flying because of high fuel prices. CEO Roberto Alvo said a $10-per-barrel fuel-price move represents about $370 million in annual costs for the airline.
1. Growth and fuel costs
LATAM CEO Roberto Alvo said the airline was tracking within its 2026 capacity-growth forecast of 9% to 10%, but closer to the lower end after canceling some planned capacity. The company’s August forecast also included adjusted core earnings of $4.1 billion to $4.4 billion. LATAM consumes about 36 million to 38 million barrels of jet fuel annually, Alvo said, making a $10-per-barrel price move worth roughly $370 million in annual costs. He said the impact had grown somewhat as fourth-quarter prices remained above the assumptions behind its guidance, which already included about $1.7 billion in additional fuel costs.
2. Premium travel and routes
Alvo said cost controls and stronger premium revenue supported LATAM’s model, though the airline had not passed all of the fuel-cost increase on to passengers. He described investments in cabins, lounges, onboard service, connectivity and customer experience as part of a long-term strategy. LATAM is interested in studying service to additional Mexican cities, including Guadalajara and Monterrey, with potential routes partly dependent on aircraft availability and the airline’s planned receipt of Airbus A321XLR jets beginning next year.
