By Brazil Stock Guide – Latam (LATAM) is the best-positioned airline to benefit from the favorable sector trends in Brazil, with a strong financial structure. The company, which exited bankruptcy proceedings in 2022, boasts an adjusted net leverage ratio of 1.6 times, well below its competitors Gol and Azul. According to Fitch, Latam leads the sector with solid cash generation.
In 2025, Latam continues to demonstrate resilience, significantly reducing its leverage compared to Gol (3.7 times) and Azul (4.9 times). Azul is still in bankruptcy proceedings, raising concerns about its financial sustainability, while Gol, despite finishing its recovery with a higher debt profile, is projected to gradually recover. Fitch upgraded Latam’s credit rating from “BB-” to “BB” with a positive outlook in April 2025.
“Latam’s ability to generate cash and its strong financial structure are the key factors that position the company ahead in the sector,” said Débora Jalles, senior director at Fitch.
Brazil’s airline sector is currently in a growth phase, with rising passenger demand and controlled costs. Latam, by strengthening its financial position, is in an excellent spot to take advantage of the growing number of flights and passengers. In 2024, Brazil saw 118 million passengers, the second-highest number in history.
Latam benefits from the growth in demand and its improved capital structure. Meanwhile, Azul is still facing financial challenges, and Gol, with its high debt, is undergoing a gradual recovery process.
Latam’s bankruptcy proceedings marked a turning point, and the airline is now navigating a more favorable environment, while other Brazilian airlines are still grappling with challenges.
The trend is for Latam to continue benefiting from high demand and the high interest rate environment, with positive prospects for the upcoming quarters.
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