Quarterly ResultMay 5, 2026, 04:19 PM
LATAM Q1 Net Income $576M, +62.1%; Operating Margin 19.8%
AI Summary
LATAM Airlines Group reported strong first-quarter 2026 financial results, with net income attributable to owners increasing 62.1% to $576 million and total revenues rising 21.7% to $4,151 million. The company achieved a 19.8% adjusted operating margin and saw significant capacity growth. Additionally, LATAM received positive credit rating outlook revisions, approved a substantial dividend, and announced a new MRO agreement with Delta Air Lines. However, the company updated its 2026 guidance to reflect significantly higher jet fuel price assumptions, anticipating additional fuel expenses of over $700 million for 2Q26.
Key Highlights
- Net Income attributable to owners of the parent company reached $576 million, a 62.1% increase year-over-year.
- Adjusted Operating Margin was 19.8%, up 3.0 percentage points from 1Q 2025.
- Total Revenues increased 21.7% to $4,151 million compared to the same period last year.
- Diluted Earnings per ADS rose 70.7% to $2.01.
- Capacity grew by 10.4%, transporting 22.9 million passengers, a 9.1% increase.
- Shareholders approved a final dividend of $438 million, representing 30% of 2025 net income.
- Moody's revised LATAM's credit rating outlook to positive, and Fitch reaffirmed its positive outlook.
- The company updated its 2026 guidance, assuming higher jet fuel prices and a revised Brazilian real exchange rate.
Price Impact
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