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LATAM Airlines Posts US$1.5 Billion Profit for 2025 as Capacity and Cash Generation Climb

Story Highlights
  • LATAM Airlines grew 2025 revenue and net income sharply, with higher capacity and strong margins.
  • Robust cash generation funded buybacks and dividends while strengthening LATAM’s balance sheet and market position.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
LATAM Airlines Posts US$1.5 Billion Profit for 2025 as Capacity and Cash Generation Climb

Meet Samuel – Your Personal Investing Prophet

LATAM Airlines Group SA Sponsored ADR ( (LTM) ) has shared an update.

On February 3, 2026, LATAM Airlines Group reported its full-year and fourth-quarter 2025 results, highlighting an 11.2% increase in annual revenue to US$14.5 billion and a 49.4% jump in net income attributable to shareholders to US$1.5 billion, supported by an 8.2% capacity expansion and transport of 87.4 million passengers. Adjusted EBITDAR rose 31.6% to US$4.1 billion with margin improving to 28.2%, while fourth-quarter adjusted EBITDAR reached US$1.1 billion and net income margin increased to 11.2%, underscoring strong operational performance, cost discipline and premium revenue growth nearly double 2019 levels. The group generated more than US$1.5 billion in adjusted levered free cash flow in 2025, enabling US$585 million in share repurchases and substantial dividend payments during the year, while reducing adjusted net leverage to 1.5x and maintaining liquidity at 25.7% of last twelve months’ revenues, reinforcing balance-sheet resilience. Management emphasized a differentiated strategy built on choice, dependability and care, an improved customer experience including a redesigned premium business cabin, and strong employee engagement, while a raft of international awards for both passenger and cargo operations strengthened LATAM’s brand and competitive positioning across its core South American markets.

The most recent analyst rating on (LTM) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

Spark’s Take on LTM Stock

According to Spark, TipRanks’ AI Analyst, LTM is a Outperform.

The score is driven by strong technical momentum and a constructive earnings outlook with solid operating performance and guidance. This is balanced by meaningful balance-sheet leverage risk, while valuation (moderate P/E and a 3.23% dividend yield) provides additional support.

To see Spark’s full report on LTM stock, click here.

More about LATAM Airlines Group SA Sponsored ADR

LATAM Airlines Group S.A. is a leading Latin American airline conglomerate with passenger and cargo affiliates, operating one of the largest route networks in the Southern Hemisphere. The group provides domestic and international passenger air transport as well as regional cargo services, and has consolidated its position as the largest airline group in the Southern Hemisphere by capacity and cargo volumes, serving more than 87 million passengers and transporting over 1 million tons of cargo in 2025.

Average Trading Volume: 900,249

Technical Sentiment Signal: Buy

Current Market Cap: $18.8B

For detailed information about LTM stock, go to TipRanks’ Stock Analysis page.

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