LATAM Airlines Group S.A. LTM
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The news check keeps the assessment current.
General analysis — not personal advice.
A full position may be justified at current valuation given cash flow and buyback support.
Strong profitability, raised EBITDA guidance and the buyback program support the add signal despite jurisdiction risk.
The market reacts positively to traffic growth and the buyback program but shows some caution around fuel costs and valuation.
BUY is the call. Positive is the market mood. Medium risk means some things can go wrong.
Latest change
- 6 Aug 2026 — Report shows raised full-year guidance and approved buyback program following strong profitability.
About the company
LATAM Airlines Group is Latin America's largest airline group with passenger and cargo operations in Chile, Brazil, Colombia, Ecuador and Peru plus international routes. The company has recovered strongly after its 2022 Chapter 11 restructuring and reports profitability with growing capacity.
Bull case
Raised full-year guidance and buyback mandate strengthen the outlook for profitable growth and share repurchases.
Bear case
Higher fuel prices and currency effects may continue to pressure margins in the second half.
Sensitivity analysis
| Factor | If it weakens | If it strengthens |
|---|---|---|
| Fuel price | Higher fuel prices raise CASK and compress margins despite capacity growth. | Lower fuel prices improve CASK and further strengthen EBITDA margins. |
| Brazilian real | Weaker real reduces USD revenues and pressures profitability in the largest market. | Stronger real increases USD revenues and improves cash flow from Brazil. |
Why this signal
Strong profitability, raised EBITDA guidance and the buyback program support the add signal despite jurisdiction risk.
Recent news
LATAM published August traffic figures with RPK up 4.7 % and ASK up 7.0 % and load factor at 83.5 %. An existing shareholder is conducting a secondary offering of 9 million ADS with no proceeds to the company. The board approved a share buyback program of up to 1 % of share capital and the company secured USD 505 million in financing for 11 new aircraft.