By Brazil Stock Guide – LATAM Airlines Group S.A. (NYSE: LTM) ended 2025 with net income of about US$1.5 billion, nearly 50% higher than in 2024, and used the result to deliver a clear message to investors: post-restructuring discipline has become structural. The group reported revenue close to US$15 billion, adjusted EBITDA of US$4.1 billion and an operating margin near 16%, numbers that underpin a plan to expand capacity by 8% to 10% in 2026 without sacrificing profitability.
Management framed the performance as the payoff of a strategy launched before the pandemic and reinforced after Chapter 11. The formula blends tight cost control, sustained product investment and a deliberate tilt toward corporate and frequent flyers. Together, executives argue, these levers dampen the airline industry’s traditional boom-and-bust cycle.
Execution over volume
In the fourth quarter, LATAM delivered adjusted EBITDA of US$1.129 billion, a 30% increase, with an EBITDA margin of 28.6%. Revenue rose 16.3% year on year, driven by 20% growth in passenger revenue. For the full year, the group carried 87 million passengers, operating the largest network in the Southern Hemisphere by fleet size and traffic.
Brazil was pivotal. Domestic market share climbed from 34% in 2019 to 40% in 2025. In the corporate segment, measured by AbraCorp, revenue share advanced from 28% to 42% over the same period. Load factors stayed above 85%, even as capacity expanded.
“Again, a good quarter, again, positive numbers, both growth and satisfaction and margin, but they are a consequence of this focus,” said Jerome Cadier, chief executive of LATAM Brazil.
Premium as protection
Investment in customer experience has become a financial lever. Net promoter score rose from 33 to more than 55 points since 2019. The airline increased domestic destinations from 44 to more than 60, reinforced hubs such as São Paulo, Brasília and Fortaleza, and announced new offerings, including a Premium Comfort cabin on long-haul flights from 2027 and Wi-Fi on widebody aircraft starting in 2026.
“This focus on the frequent passenger and on the corporate market makes LATAM have more predictable and less volatile receipts over time,” Cadier said during the briefing.
Dollar effect
During the press conference, Brazil Stock Guide asked management about the impact of a weaker U.S. dollar at the start of 2026. CFO Ricardo Bottas said LATAM is structurally less exposed than most regional peers because more than 60% of group revenue is generated in U.S. dollars, combining international passenger and cargo operations.
“These two operations together generate receipts in dollars that exceed 60% of the total revenue of the LATAM Group,” Bottas said. He added that currency swings tend to raise local-currency costs but also lift revenues when translated back into dollars, while hedging strategies further smooth volatility. The result, according to Bottas, is that exchange movements have not produced “very relevant” distortions in reported earnings.
2026 test
For 2026, the group plans to take delivery of 41 aircraft, up from 26 in 2025, ending the year with roughly 410 planes. Guidance calls for an operating margin of 15% to 17%, post-investment cash generation of about US$1.7 billion, and a further reduction in leverage to 1.4 times net debt to EBITDA.
“Fourth quarter, an adjusted EBITDA of US$1.129 billion, 30% growth compared to the previous year and an EBITDA margin of 28.6%,” Bottas said, pointing to consistency as the anchor of the outlook.
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