LATAM Airlines Lowers 2026 Outlook Amid Fuel Price Spike
LATAM Airlines reduced its 2026 earnings forecast after fuel costs rose over 50 percent, despite reporting a 16 percent increase in third-quarter net profit.
The largest airline group in Latin America, LATAM Airlines, lowered its core earnings outlook for 2026 following a surge in fuel prices. Fuel costs increased by more than 50 percent compared to the previous year, resulting in a $520 million expense during the third quarter and a sharp reduction in adjusted operating margins.
Despite the fuel spike, the company reported a 16 percent increase in net profit to $441 million for the quarter. Revenues reached $4.57 billion, supported by resilient demand for both passenger and cargo services.
In response to the cost pressures, the company reduced its adjusted EBITDA forecast to a range between $3.9 billion and $4.05 billion, down from the previous estimate of $4.1 billion to $4.4 billion. Chief Executive Roberto Alvo has begun trimming some planned flying and is targeting the lower end of the company's capacity-growth goals to mitigate further expenses.
