LATAM Airlines Group SA Sponsored ADR (LTM)
NYSE:LTM
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LATAM Airlines Group SA Sponsored ADR
(NYSE:LTM)
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Rating:64Neutral
Price Target:
$55.00
â–Ľ(-1.19% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving profitability and cash generation, but capped by elevated leverage that increases downturn sensitivity. Valuation is a clear positive (low P/E and moderate yield), while technical signals are mixed/neutral. Earnings-call commentary supports underlying strength but highlights significant near-term fuel-cost headwinds and limited forward visibility.
Positive Factors
Cash generation & liquidity
Consistent OCF and positive free cash flow across 2023–2025 and TTM, plus ~$4.1B liquidity, give LATAM durable ability to fund capex, service debt and absorb cyclical shocks. Strong cash generation supports deleveraging, fleet investments and operational resilience over the medium term.
Negative Factors
Elevated leverage
High absolute debt and thin equity after restructuring leave LATAM financially sensitive to demand shocks or cost spikes. Elevated leverage limits strategic flexibility, raises refinancing risk in downturns, and makes profitability swings more impactful on solvency despite recent improvement in metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & liquidity
Consistent OCF and positive free cash flow across 2023–2025 and TTM, plus ~$4.1B liquidity, give LATAM durable ability to fund capex, service debt and absorb cyclical shocks. Strong cash generation supports deleveraging, fleet investments and operational resilience over the medium term.
Read all positive factors
LATAM Airlines Group SA Sponsored ADR (LTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.53B
Dividend Yield3.5%
Average Volume (3M)995.75K
Price to Earnings (P/E)6.2
Beta (1Y)0.80
Revenue Growth16.19%
EPS Growth62.18%
CountryUS
Employees39,005
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)5.60
Shares Outstanding287,108,000
10 Day Avg. Volume1,044,077
30 Day Avg. Volume995,755
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)11.83
Price to Sales (P/S)1.12
P/FCF Ratio10.71
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue1.35
Enterprise Value/Gross Profit4.53
Enterprise Value/Ebitda6.87
Forecast
1Y Price Target
$65.87Price Target Upside18.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)4.56
Revenue Forecast (FY)$16.91B
LATAM Airlines Group SA Sponsored ADR Business Overview & Revenue Model
Company Description
LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Peru, Ecuador, Colombia, Brazil, other Latin American countries, the Caribbean, North America, Europe, and Oceania. It of...
How the Company Makes Money
LATAM Airlines Group primarily makes money by selling air transportation and related services. Its main revenue stream is passenger revenue from ticket sales across its domestic and international route network; fares vary by cabin/service class an...
LATAM Airlines Group SA Sponsored ADR Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveys a positive tone driven by record first-quarter results: strong top-line growth (+21.7% revenue), robust margins (~19.8% adjusted operating margin), healthy passenger demand and premium mix expansion, solid cash generation and a strong balance sheet (liquidity $4.1B, net leverage 1.3x). However, significant near-term headwinds from a sharp rise in jet fuel costs (>$700M expected in Q2), anticipated compression of Q2 margins to mid- to low single-digits, rising unit costs ex-fuel and limited forward visibility temper the outlook. Management is taking a conservative stance in guidance and positioning the company to withstand a volatile period. Overall, the strength of operating results and the balance sheet outweigh near-term fuel-driven risks, but the situation calls for cautious monitoring.Positive Updates
Record Quarterly Revenue and Profitability
Revenue reached $4.1 billion, a 21.7% increase year-over-year; adjusted EBITDA was $1.3 billion and adjusted operating margin expanded to 19.8% (up ~3 percentage points YoY), the highest quarterly operating margin in company history; net income was $576 million, up ~62% YoY, with a net margin around 14%.
Negative Updates
Significant Near-Term Fuel Cost Headwind
Management expects additional jet fuel expenses of more than $700 million in Q2 (assumes $170/bbl for Q2 and Q3 and $150/bbl for Q4); fuel price spike driven by Middle East conflict will materially affect results starting in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue and Profitability
Revenue reached $4.1 billion, a 21.7% increase year-over-year; adjusted EBITDA was $1.3 billion and adjusted operating margin expanded to 19.8% (up ~3 percentage points YoY), the highest quarterly operating margin in company history; net income was $576 million, up ~62% YoY, with a net margin around 14%.
Read all positive updates
Company Guidance
LATAM replaced its full‑year 2026 guidance with a focused set of metrics: it assumes jet fuel market prices of $170/barrel for Q2 and Q3 and $150/barrel for Q4 (versus the prior $90/bbl assumption), expects passenger unit cost ex‑fuel of $0.045–$0.047, forecasts adjusted EBITDA of $3.8–$4.2 billion, targets net leverage at or below 1.8x and liquidity of at least $4.5 billion, and flags more than $700 million of additional fuel expense in Q2; management expects a mid‑ to low‑single‑digit adjusted operating margin in Q2, is not providing top‑line or capacity guidance given uncertainty, and notes the guidance reflects disclosed hedging contracts through end‑April while using market fuel price references.LATAM Airlines Group SA Sponsored ADR Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
46
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.01B | 14.27B | 12.83B | 11.64B | 9.36B | 4.88B |
| Gross Profit | 4.47B | 4.16B | 3.27B | 2.82B | 1.26B | -79.47M |
| EBITDA | 2.94B | 3.27B | 2.34B | 1.28B | 2.26B | -3.34B |
| Net Income | 1.68B | 1.46B | 976.97M | 581.83M | 1.34B | -4.65B |
Balance Sheet | ||||||
| Total Assets | 18.71B | 17.64B | 15.25B | 14.67B | 13.21B | 13.29B |
| Cash, Cash Equivalents and Short-Term Investments | 2.59B | 2.17B | 1.96B | 1.85B | 1.35B | 1.12B |
| Total Debt | 8.40B | 8.09B | 7.15B | 7.04B | 6.87B | 10.54B |
| Total Liabilities | 16.78B | 16.30B | 14.54B | 14.23B | 13.18B | 20.36B |
| Stockholders Equity | 1.93B | 1.35B | 723.27M | 450.30M | 42.28M | -7.06B |
Cash Flow | ||||||
| Free Cash Flow | 1.83B | 1.49B | 1.69B | 1.47B | -733.86M | -859.86M |
| Operating Cash Flow | 3.57B | 3.26B | 3.11B | 2.26B | 96.80M | -184.10M |
| Investing Cash Flow | -1.65B | -1.71B | -1.17B | -659.50M | -748.96M | -542.65M |
| Financing Cash Flow | -1.59B | -1.41B | -1.56B | -1.15B | 854.96M | 109.64M |
LATAM Airlines Group SA Sponsored ADR Technical Analysis
Negative
55.66
Price Trends
49.69
Negative
54.18
Negative
50.07
Negative
Market Momentum
-0.93
Positive
40.83
Neutral
8.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTM, the sentiment is Negative. The current price of 55.66 is above the 20-day moving average (MA) of 48.64, above the 50-day MA of 49.69, and above the 200-day MA of 50.07, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LTM.
LATAM Airlines Group SA Sponsored ADR Risk Analysis
LATAM Airlines Group SA Sponsored ADR disclosed 51 risk factors in its most recent earnings report. LATAM Airlines Group SA Sponsored ADR reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LATAM Airlines Group SA Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.51B | 7.20 | 26.01% | 5.28% | 5.03% | 11.62% | |
72 Outperform | $48.70B | -37.50 | 23.14% | 0.96% | 5.24% | 20.93% | |
71 Outperform | $30.04B | 10.76 | 24.91% | ― | 4.73% | 1.55% | |
64 Neutral | $13.53B | 6.16 | 126.90% | 3.50% | 16.19% | 62.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $18.75B | 20.61 | 10.67% | 1.73% | 4.72% | 72.71% | |
50 Neutral | $8.17B | ― | -5.17% | ― | 3.33% | -70.60% |
* Industrials Sector Average
LTM
LATAM Airlines Group SA Sponsored ADR
50.37
14.51
40.45%
CPA
Copa Holdings
135.63
38.91
40.22%
DAL
Delta Air Lines
74.12
26.42
55.39%
LUV
Southwest Airlines
39.70
8.57
27.53%
UAL
United Airlines Holdings
98.02
24.69
33.67%
AAL
American Airlines
12.95
1.71
15.21%
LATAM Airlines Group SA Sponsored ADR Corporate Events
LATAM Airlines Files Q1 2026 Interim Financial Statements with U.S. SEC
May 5, 2026
On May 5, 2026, LATAM Airlines Group S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission, submitting its interim consolidated financial statements for the period ended March 31, 2026. The filing, signed by Chief Financial Office...
LATAM Airlines Posts Record 1Q 2026 Results and Deepens Delta Partnership
May 5, 2026
LATAM Airlines Group reported record first-quarter 2026 results on May 5, 2026, delivering an adjusted operating margin of 19.8% and net income of US$576 million, supported by 10.4% capacity growth and strong demand, particularly in international ...
LATAM Airlines Refreshes Board and Strengthens Governance in April 23, 2026 Meeting
Apr 23, 2026
At LATAM Airlines Group’s Ordinary Shareholders’ Meeting held on April 23, 2026, shareholders elected a nine-member board of directors for a two-year term, including Enrique and Ignacio Cueto Plaza, Bornah Moghbel, Michael Neruda, Soni...
LATAM Airlines Approves Final 2025 Dividend, Confirms 30% Payout Ratio
Apr 23, 2026
LATAM Airlines Group S.A. reported that its Ordinary Shareholders’ Meeting held on April 23, 2026, approved the distribution of Final Minimum Mandatory Dividend No. 55 for a total of US$37,995,268.60 equivalent in Chilean pesos, or about US$...
LATAM Airlines Boosts March 2026 Capacity and Load Factors on Strong Brazil and International Demand
Apr 9, 2026
In March 2026, LATAM Airlines Group increased consolidated capacity by 9.3% year on year, driven mainly by a 12.5% rise in domestic capacity in Brazil and a 10.9% expansion in international operations, including the launch of a new São Paulo&...
LATAM Airlines Board Proposes Final 2025 Dividend Ahead of April 23 Shareholders’ Meeting
Apr 8, 2026
LATAM Airlines Group S.A. said its board agreed on April 7, 2026, to propose a definitive, minimum mandatory Dividend No. 55 totaling the Chilean peso equivalent of US$37,995,268.60 to the ordinary shareholders’ meeting set for April 23, 202...
LATAM Airlines Lifts February Traffic 9% as Load Factors Strengthen Across Network
Mar 9, 2026
In February 2026, LATAM Airlines Group transported 7.1 million passengers, a 9.3% increase versus February 2025, as consolidated load factor improved 2.2 percentage points to 85.6%. The group expanded system capacity by 11.4% in available seat-kil...
LATAM Airlines Calls Remote Ordinary Shareholders’ Meeting for April 23, 2026
Mar 4, 2026
LATAM Airlines Group S.A. has called an Ordinary Shareholders’ Meeting for April 23, 2026, to be held via remote participation tools, reflecting ongoing digitalization of its corporate governance processes. Shareholders registered by midnigh...
LATAM Airlines Details 12 Million ADS Secondary Offering via J.P. Morgan
Feb 11, 2026
On February 11, 2026, LATAM Airlines Group S.A. reported to the U.S. Securities and Exchange Commission that it has entered into an underwriting agreement dated February 9, 2026, with J.P. Morgan Securities LLC and a selling shareholder for a seco...
LATAM Airlines Starts 2026 With Strong Passenger Growth and Higher Load Factors
Feb 10, 2026
LATAM Airlines Group reported that in January 2026 it transported 8.2 million passengers, a 9.0% increase from January 2025, with its system-wide passenger load factor improving to 86.4%. Consolidated capacity grew 11.1% year over year, led by a 1...
LATAM Airlines Discloses Sixth Secondary ADR Sale by Sixth Street Partners
Feb 10, 2026
On February 9, 2026, LATAM Airlines Group S.A. disclosed that a shareholder initiated the sixth secondary sale under an existing registration rights agreement, involving 12,000,000 of the company’s ADRs. The ADRs were priced at US$61.90 each...
LATAM Airlines Secondary ADR Offering Priced at $61.90 per Share
Feb 10, 2026
On February 9, 2026, LATAM Airlines Group S.A. said a shareholder priced a public secondary offering of 12,000,000 American Depositary Shares at $61.90 per ADS, with J.P. Morgan Securities LLC acting as underwriter. The transaction, expected to cl...
LATAM Airlines Updates F-3 With 2025 Audited Results and Controls Report
Feb 9, 2026
LATAM Airlines Group S.A. has filed a Form 6-K in February 2026, incorporating into its existing F-3 shelf registration a fresh set of audited consolidated financial statements for the years ended December 31, 2025, 2024 and 2023. The filing also ...
LATAM Airlines Discloses Planned Sixth Secondary Share Sale Request by Shareholder
Feb 9, 2026
On February 9, 2026, LATAM Airlines Group disclosed that a shareholder has requested the initiation of a sixth secondary sale of the company’s shares under an existing Registration Rights Agreement, with the transaction intended to be a firm...
LATAM Airlines Shareholder Launches Secondary Offering of 9 Million ADSs
Feb 9, 2026
LATAM Airlines Group S.A., the leading passenger and cargo carrier in Latin America, operates in key domestic markets across the region and serves long‑haul routes to North America, Europe, Africa, Oceania and the Caribbean with a mixed Boei...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.