LATAM shares jump as airline says it can keep fares high and trim growth if fuel stays elevated
LTM•LATAM shares rose about 8% in Santiago and its New York-traded ADRs gained roughly 10% after executives said the airline could maintain elevated fares and slow expansion to protect margins. The airline had cut its 2026 core earnings outlook, citing high jet fuel prices.
1. Shares rise on pricing outlook
LATAM Airlines shares rose about 8% in Santiago on Wednesday, while its New York-traded ADRs gained roughly 10%, after executives told investors the carrier could keep ticket prices elevated and slow expansion if needed to protect margins.
2. Growth and fuel plans
Chief Executive Roberto Alvo said LATAM had the fleet to grow by up to the high single digits in 2027, but would likely expand less if fuel prices remain high. The airline had lowered its annual capacity growth plan by about half a percentage point. Alvo said industry capacity should remain constrained by aircraft and engine delivery delays, helping keep fares above pre-crisis levels even if fuel prices ease.
3. Earnings outlook cut
LATAM cut its full-year 2026 core earnings outlook on Tuesday, citing high jet fuel prices. CFO Bottas said the airline had not changed its fuel-hedging policy but was buying less protection because hedges had become more costly.
