Key Points – LATAM remained profitable despite a severe fuel-cost shock: Fuel prices rose more than 80% year over year and fuel expense increased 93%, but revenue grew nearly 28% to about $4.2 billion and the adjusted operating margin reached 5.4%. – The airline is expanding its…
azilian network and regional capacity: LATAM Brasil will receive its first 12 Embraer E-Jet E2 aircraft in late 2026, supporting 42 domestic routes and potentially up to 18 new bases from 2027. – LATAM raised its 2026 outlook and authorized a buyback: The company now expects $4.1 billion-$4.4 billion in adjusted EBITDA, $17.3 billion-$17.7 billion in revenue and 9%-10% capacity growth, while its board approved repurchases of up to 5% of shares. – Viasat: Why a Wall of Cash Has Shorts Running for Cover LATAM Airlines Group (NYSE:LTM) reported second-quarter 2026 results that remained profitable despite what management described as one of the airline industry’s sharpest recent increases in jet fuel prices. Chief Executive Officer Roberto Alvo said the all-in impact of higher fuel prices exceeded $700 million during the quarter
Even so, the company posted an adjusted operating margin of 5.4%, at the higher end of management’s prior expectation for a mid- to low-single-digit margin in the period. “The second quarter of 2026 was an important demonstration of the resilience of LATAM Airlines Group’s business model,” Alvo said, citing the company’s passenger, cargo and loyalty businesses, commercial initiatives, cost structure and balance sheet. Revenue Growth Offsets Part of Fuel Shock Chief Financial Officer Ricardo Bottas said LATAM’s average fuel price, including hedges, rose more than 80% year over year in the second quarter. Total fuel expense increased 93%, creating a substantial cost headwind.
LATAM responded with revenue-management actions and targeted capacity adjustments. Total revenue rose nearly 28% from a year earlier to almost $4.2 billion, led by a 28% increase in passenger…