LATAM Airlines Group (NYSE:LTM) Issues Quarterly Earnings Results, Beats Expectations By $0.34 EPS

LATAM Airlines Group (NYSE:LTM) announced its earnings results on Wednesday. The transportation company reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.35 by $0.34, Zacks reports. LATAM Airlines Group had a return on equity of 136.76% and a net margin of 8.99%.The firm had revenue of $3.95 billion for the quarter, compared to the consensus estimate of $3.81 billion.

Here are the key takeaways from LATAM Airlines Group’s conference call:

• LATAM reported strong full?year results with Adjusted EBITDA of ~$4.1 billion, a 16.2% adjusted operating margin and net income of about $1.5 billion (EPS $4.95), with Q4 showing double?digit revenue and margin improvement.
• Operational expansion: the group carried ~87 million passengers in 2025, grew capacity ~8.2%, increased fleet to 371 aircraft (26 deliveries) and guided 2026 capacity growth of 8–10% with 41 aircraft expected.
• Balance sheet and cash generation strengthened: year?end liquidity was $3.7 billion, adjusted net leverage ~1.5x, weighted average cost of debt fell to ~6.6%, and management completed $585M of buybacks while guiding to >$5B liquidity and >$1.7B adjusted leveraged free cash flow in 2026.
• The company advanced a $400 million interim dividend in December, which led reported net debt (~$5.9B) to be ~8% above prior guidance because the guidance had not assumed the early dividend payment.
• Customer and premium momentum: record NPS of 54 and an Organizational Health Index of 83, while premium travel accounted for ~23% of passenger revenue and continues to grow faster than total passenger revenues.

LATAM Airlines Group Stock Performance

NYSE LTM opened at $64.10 on Thursday. The firm’s 50 day moving average price is $56.50 and its two-hundred day moving average price is $49.21. LATAM Airlines Group has a twelve month low of $26.36 and a twelve month high of $70.42. The stock has a market cap of $19.37 billion, a price-to-earnings ratio of 15.30, a PEG ratio of 0.47 and a beta of 3.89.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on LTM shares. Wall Street Zen upgraded LATAM Airlines Group from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 22nd. The Goldman Sachs Group restated a “buy” rating and set a $58.50 price objective on shares of LATAM Airlines Group in a research report on Friday, December 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of LATAM Airlines Group in a report on Thursday, January 22nd. Barclays reissued an “overweight” rating and set a $75.00 target price on shares of LATAM Airlines Group in a research note on Thursday. Finally, Zacks Research upgraded shares of LATAM Airlines Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $66.75.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of LTM. Tower Research Capital LLC TRC purchased a new stake in LATAM Airlines Group in the 2nd quarter worth about $90,000. Rhumbline Advisers grew its stake in LATAM Airlines Group by 113.8% during the 1st quarter. Rhumbline Advisers now owns 3,194 shares of the transportation company’s stock valued at $100,000 after acquiring an additional 1,700 shares in the last quarter. Jane Street Group LLC acquired a new position in shares of LATAM Airlines Group in the 2nd quarter valued at about $237,000. Flow Traders U.S. LLC purchased a new stake in shares of LATAM Airlines Group in the second quarter worth approximately $263,000. Finally, Quantbot Technologies LP acquired a new stake in shares of LATAM Airlines Group during the second quarter worth approximately $402,000.

LATAM Airlines Group Company Profile

LATAM Airlines Group SA is a Chilean-based airline holding company formed in 2012 through the merger of LAN Airlines of Chile and TAM Linhas Aéreas of Brazil. The Group offers passenger and cargo air transportation services across South America and beyond, operating under a multi?brand strategy that encompasses several nationally recognized carriers. Headquartered in Santiago, Chile, LATAM is structured to serve diverse market segments with full-service, premium and low?cost offerings.

The core business activities of LATAM Airlines Group include scheduled domestic and international passenger flights, air cargo services and maintenance, repair and overhaul (MRO) capabilities through its technical divisions.