LATAM maintained a healthy 84.4% load factor, transported 87 million passengers in 2025, launched 22 new routes, and achieved a full-year capacity growth of 8.2%. For 2026, the company projects 8-10% capacity growth, 15-17% adjusted operating margin, and plans to receive 41 new aircraft including three widebodies and twelve Embraer E2s to support its expansion strategy.
Cyborg Score Rationale
Q4 2025 earnings of $1.69 per share beat forecasts by 34.13% with revenues reaching $4 billion (up 16.3% YoY) and net income surging 78.1% to $484 million. Strong operational metrics and aggressive fleet expansion position LATAM well for sustained growth in Latin American aviation.
Top Insights
Adjusted EBITDA increased 30.4% to $1.1 billion despite 9.6% cargo revenue decline offset by 20.3% passenger revenue growth
For 2026, LATAM projects adjusted leveraged free cash flow exceeding $1.7 billion with liquidity over $5 billion
January 2026 traffic statistics show 13.3% year-over-year RPK growth, 11.1% capacity increase and load factor rising to 86.4%
Forward P/E ratio of 10.17 suggests attractive valuation relative to current earnings trajectory
Named Competitors
Gol Linhas Aéreas — Brazilian low-cost airline competitor
Grupo Aeromexico — Mexican airline operator
Copa Holdings — Panamanian regional airline
Alaska Air Group — North American airline competitor
Recent Developments
(February 2026) LATAM detailed 12 million ADS secondary offering via J.P. Morgan for capital optimization
(February 2026) January 2026 traffic shows strong 13.3% year-over-year RPK growth and rising load factors
(February 2026) Q4 2025 results beat EPS forecasts by 34.13% with $4 billion in revenues
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