LATAM lifts 2026 profit guidance

LATAM Airlines Group increased its full-year 2026 adjusted EBITDA guidance to a range of $4.1 billion to $4.4 billion. This represents an upgrade from the $3.8 billion to $4.2 billion range it had forecast at the end of the first quarter. The revision reflects management’s expectation of more favorable conditions for the remainder of the year despite continued fuel cost pressures.

The updated guidance places earnings expectations higher even as the company faces elevated operating expenses. LATAM is positioning itself to benefit from demand trends while working within a more challenging cost environment.

For the second quarter, LATAM reported net profit of $125.2 million, a decline compared with $241.6 million in the same period a year earlier. Over the same interval, revenue grew 27% to $4.12 billion, highlighting strong top-line momentum. The combination of higher revenue and lower profit underscores the impact of cost headwinds on the business.

Fuel costs were a major driver of margin pressure. LATAM stated that fuel expenses nearly doubled year-on-year in the quarter and that it absorbed more than $800 million in additional fuel costs in a single quarter. These fuel dynamics were significant enough to weigh on profitability even as demand conditions supported robust revenue growth.

Despite cost volatility, LATAM continues to pursue network expansion. The company expects capacity growth of 9% to 10% for the year, indicating confidence in passenger demand and market conditions. This growth target frames the operational scale behind the upgraded earnings guidance.

Looking further ahead, LATAM announced the first phase of operations with Embraer E195-E2 aircraft in Brazil. The airline plans to introduce up to 14 of these jets between late 2026 and early 2027, deploying them across 42 routes. The planned fleet additions suggest a focus on regional connectivity and efficiency as LATAM builds out its network.

The combination of higher earnings guidance, strong revenue growth and substantial fuel cost increases illustrates the balancing act facing LATAM. The company is working to expand capacity and modernize its fleet while managing significant input-cost volatility. The raised adjusted EBITDA outlook indicates that management believes current demand and operational strategies can offset much of the fuel expense impact.