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

LATAM Airlines Group (NYSE:LTM) announced its quarterly earnings results on Wednesday. The transportation company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $1.35 by $0.34, Zacks reports. LATAM Airlines Group had a net margin of 10.07% and a return on equity of 136.61%. The company had revenue of $3.95 billion for the quarter, compared to analyst estimates 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 Trading Up 1.0%

Shares of LATAM Airlines Group stock opened at $64.81 on Friday. The stock has a market cap of $19.59 billion, a PE ratio of 13.01, a price-to-earnings-growth ratio of 0.43 and a beta of 3.89. LATAM Airlines Group has a 52 week low of $26.36 and a 52 week high of $70.42. The company’s 50-day moving average price is $56.83 and its two-hundred day moving average price is $49.32.

Institutional Trading of LATAM Airlines Group

Several large investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC purchased a new stake in LATAM Airlines Group in the 2nd quarter worth approximately $90,000. Rhumbline Advisers lifted its stake in shares of LATAM Airlines Group by 113.8% in the first quarter. Rhumbline Advisers now owns 3,194 shares of the transportation company’s stock worth $100,000 after buying an additional 1,700 shares during the last quarter. Jane Street Group LLC acquired a new position in shares of LATAM Airlines Group during the 2nd quarter worth about $237,000. Flow Traders U.S. LLC acquired a new position in shares of LATAM Airlines Group during the second quarter worth approximately $263,000. Finally, Quantbot Technologies LP acquired a new position in LATAM Airlines Group during the 2nd quarter valued at $402,000.

Analysts Set New Price Targets

LTM has been the subject of several analyst reports. Wall Street Zen upgraded shares of LATAM Airlines Group from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 22nd. The Goldman Sachs Group reissued a “buy” rating and set a $58.50 price target on shares of LATAM Airlines Group in a research report on Friday, December 5th. Barclays reissued an “overweight” rating and issued a $75.00 target price (up previously from $60.00) on shares of LATAM Airlines Group in a research report on Thursday. Zacks Research raised shares of LATAM Airlines Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 9th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of LATAM Airlines Group in a research note on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, LATAM Airlines Group has an average rating of “Buy” and a consensus target price of $66.75.

About LATAM Airlines Group

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.