LATAM Airlines Group SA Sponsored ADR (LTM) AI Stock Analysis

• Market Cap: $18.61B
• Dividend Yield: 3.5%
• Average Volume (3M): 703.03K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.65
• Revenue Growth: 6.81%
• EPS Growth: 58.22%
• Country: US
• Employees: 39,005
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.30
• Shares Outstanding: 302,218,930
• 10 Day Avg. Volume: 895,606
• 30 Day Avg. Volume: 703,032
• PEG Ratio: 0.14
• Price to Book (P/B): 11.52
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 4.94
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: 6.63
• Enterprise Value/Ebitda: 7.62
• 1Y Price Target: $63.10
• Price Target Upside: -5.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $65.00 ▼(-2.20% Downside)

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.

Positive Factors

Fleet renewal & fuel efficiency

Committing to up to 74 Embraer E2 regional jets materially lowers fuel burn per seat and unit costs over the fleet life. Structurally reduces fuel exposure, supports margin resilience, and enables more efficient regional capacity growth and network densification.

Sustained margin expansion

Significant operating margin expansion and stronger net income reflect durable improvements in pricing, cost control and capacity management. This enhances free cash flow generation capacity, enabling reinvestment, debt reduction or shareholder returns over the medium term.

Growing passenger volumes & network

Consistent passenger growth and route expansion strengthen market position and hub connectivity across Brazil and international markets. Network scale supports higher revenue potential, improved aircraft utilization, and diversification of regional demand exposure.

Negative Factors

High leverage on balance sheet

Very high leverage reduces financial flexibility and raises refinancing and interest coverage risk. In a cyclical, capital‑intensive airline industry this amplifies vulnerability to demand shocks or fuel/FX swings and can limit long‑term strategic investments.

Regulatory risk in Brazil

If enacted, mandated free baggage and seat selection would structurally erode ancillary revenue and raise unit costs in LATAM's largest market. That regulatory shift could compress margins and require reworking pricing and product strategies across the network.

Labor disruption risk (Chile pilots)

Ongoing pilot strikes indicate persistent labor negotiation risk that can cause schedule cancellations, contingency costs and service disruptions. Chronic labor friction increases operating volatility and may force higher long‑term labor costs or degrade reliability.

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 offers other services, such as ground handling, courier, logistics, and maintenance services. As of December 31, 2023, the company provides passenger transport services to 148 destinations in 26 countries and cargo services to 166 destinations in 33 countries; and operated 333 fleet of aircraft. The company was formerly known as LAN Airlines S.A. and changed its name to LATAM Airlines Group S.A. in June 2012. LATAM Airlines Group S.A. was founded in 1929 and is headquartered in Santiago, Chile.

How the Company Makes Money

LATAM Airlines Group generates revenue primarily through the sale of passenger tickets and cargo services. The company operates on a revenue model that includes several key streams: passenger fares, freight transport fees, and ancillary revenues from services like baggage fees, in-flight sales, and loyalty program memberships. The company has established significant partnerships with other airlines and travel-related businesses, which enhance its network and customer reach. Additionally, LATAM has a frequent flyer program, LATAM Pass, which not only encourages customer loyalty but also generates income through partnerships with hotels, car rental services, and credit card companies. Economic factors, fuel prices, and travel demand also significantly influence the company’s earnings.

LATAM Airlines Group SA Sponsored ADR Financial Statement Overview

Summary

Profitability and cash generation are improving (TTM gross margin 27.19%, net margin 8.88%, free cash flow growth 13.66%), but the balance sheet is a clear risk with very high leverage (TTM debt-to-equity 8.22) in a cyclical airline industry.

Income Statement

LATAM Airlines has shown consistent revenue growth, with a TTM revenue growth rate of 3.86%. The company has improved its profitability margins over the years, with a TTM gross profit margin of 27.19% and a net profit margin of 8.88%. EBIT and EBITDA margins have also strengthened, indicating better operational efficiency. However, the airline industry remains competitive and sensitive to economic fluctuations, which could impact future performance.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 8.22 in the TTM, indicating significant leverage. While the return on equity is strong at 141.28%, the high leverage poses a risk, especially in a volatile industry like airlines. The equity ratio is relatively low, suggesting a reliance on debt financing, which could affect financial stability in adverse conditions.

Cash Flow

LATAM Airlines has demonstrated positive free cash flow growth of 13.66% in the TTM, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is 0.46, indicating decent cash flow coverage. However, the free cash flow to net income ratio of 0.44 suggests that while cash flow is improving, there is still room for strengthening cash reserves to support future operations and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.69B	12.83B	11.64B	9.36B	4.88B	3.92B
Gross Profit	3.86B	3.27B	2.82B	1.26B	-79.47M	275.19M
EBITDA	3.36B	2.34B	1.28B	2.26B	-3.34B	-4.58B
Net Income	1.24B	976.97M	581.83M	1.34B	-4.65B	-4.55B
Balance Sheet
Total Assets	16.99B	15.25B	14.67B	13.21B	13.29B	15.65B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.96B	1.85B	1.35B	1.12B	1.74B
Total Debt	7.61B	7.15B	7.04B	6.87B	10.54B	10.96B
Total Liabilities	15.89B	14.54B	14.23B	13.18B	20.36B	18.09B
Stockholders Equity	1.10B	723.27M	450.30M	42.28M	-7.06B	-2.44B
Cash Flow
Free Cash Flow	1.40B	1.69B	1.47B	-733.86M	-859.86M	-894.39M
Operating Cash Flow	3.24B	3.11B	2.26B	96.80M	-184.10M	-494.70M
Investing Cash Flow	-1.76B	-1.17B	-659.50M	-748.96M	-542.65M	33.61M
Financing Cash Flow	-1.48B	-1.56B	-1.15B	854.96M	109.64M	1.12B

LATAM Airlines Group SA Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LTM, the sentiment is Positive. The current price of 66.46 is above the 20-day moving average (MA) of 58.52, above the 50-day MA of 53.09, and above the 200-day MA of 43.67, indicating a bullish trend. The MACD of 3.20 indicates Negative momentum. The RSI at 83.99 is Negative, neither overbought nor oversold. The STOCH value of 95.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LTM.

LATAM Airlines Group SA Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPA	77 Outperform	$5.62B	8.46	26.69%	5.28%	1.36%	6.84%
LTM	72 Outperform	$18.61B	15.52	135.73%	3.50%	6.81%	58.22%
DAL	70 Outperform	$44.07B	8.81	27.78%	0.96%	4.33%	-1.58%
UAL	68 Neutral	$34.89B	10.17	23.99%	―	4.24%	20.29%
LUV	66 Neutral	$21.74B	64.05	4.22%	1.73%	0.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	50 Neutral	$9.62B	81.38	―	―	1.27%	118.64%

LATAM Airlines Group SA Sponsored ADR Corporate Events

LATAM Airlines Carries 87.4 Million Passengers in 2025 as Brazil and International Routes Drive Growth

On January 12, 2026, LATAM Airlines Group reported that it transported 87.4 million passengers in 2025, a 6.6% increase versus 2024, underscoring continued recovery and expansion driven primarily by Brazil’s domestic market and international operations. In December 2025 alone, the airline carried 7.9 million passengers, up 7.6% year-on-year, while system capacity in available seat-kilometers rose 10.9% and traffic in revenue passenger-kilometers climbed 10.5%, yielding a consolidated load factor of 84.5%. The group expanded its network during the year with eight new destinations and, in December, launched 10 new routes including two long-haul services—Santiago–Buenos Aires (Ezeiza)–Miami and Guayaquil–New York—strengthening its regional and long-haul connectivity. Cargo operations showed stable capacity, with 731 million available ton-kilometers in December and modest full-year growth in cargo traffic, reflecting a balanced expansion between passenger growth and freight activity across the network.

The most recent analyst rating on (LTM) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

LATAM Airlines Reports Passenger Growth and Capacity Expansion in November 2025

In November 2025, LATAM Airlines Group reported a 4.9% increase in passenger numbers, transporting 7.4 million passengers. The company expanded its capacity by 4.6% compared to November 2024, driven by a notable 11.4% increase in LATAM Airlines Brazil’s domestic capacity and a 4.0% rise in international operations, including new routes from Santiago to Belo Horizonte and Bogotá to Belém. Despite a slight decrease in the overall load factor to 85.4%, the domestic market in Brazil showed a strong 12.1% year-over-year increase in traffic. Cargo operations also saw a modest 1.0% increase in capacity. These developments reflect LATAM’s strategic growth in the region and its efforts to enhance connectivity, potentially benefiting stakeholders through increased market reach and operational efficiency.

The most recent analyst rating on (LTM) stock is a Buy with a $58.50 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

LATAM Airlines Approves $400 Million Interim Dividend for 2025

On December 3, 2025, LATAM Airlines Group S.A. announced the approval of an interim dividend distribution, Dividend No. 54, amounting to US$400 million, to be paid on December 23, 2025. This decision reflects the company’s financial performance for the 2025 fiscal year and underscores its commitment to returning value to shareholders. Shareholders registered by December 17, 2025, will be eligible for this dividend, which will be disbursed in Chilean pesos based on the exchange rate published on December 17, 2025. This announcement highlights LATAM’s strong financial position and its ongoing efforts to maintain shareholder confidence.

The most recent analyst rating on (LTM) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

LATAM Airlines Releases Interim Financial Statements for Q3 2025

On November 14, 2025, LATAM Airlines Group S.A. released its interim consolidated financial statements for the period ending September 30, 2025. This financial disclosure provides stakeholders with detailed insights into the company’s financial position, income, and cash flows, reflecting its operational performance and financial health. The release of these statements is crucial for investors and analysts to assess LATAM’s market positioning and future prospects.

The most recent analyst rating on (LTM) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

LATAM Airlines Reports Strong Q3 2025 Results and Future Expansion Plans

LATAM Airlines Group S.A. reported strong financial results for the third quarter of 2025, with a 17.3% increase in total revenues compared to the same period in 2024. The company achieved an adjusted EBITDAR of US$1,150 million, reflecting a 38.9% increase, and expanded its capacity by 9.3% year-over-year. LATAM’s strategic focus on premium services and operational efficiency contributed to a solid net income of US$379 million. The company also announced plans to acquire up to 74 Embraer E195-E2 aircraft to enhance regional connectivity, with deliveries starting in late 2026. These results underscore LATAM’s robust market position and financial discipline, as it continues to focus on growth and customer value.

The most recent analyst rating on (LTM) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

LATAM Airlines Group Sees Passenger Growth in October 2025

In October 2025, LATAM Airlines Group transported 7.7 million passengers, marking a 7.7% increase from October 2024. The group’s consolidated capacity rose by 7.4%, driven by a 13.2% increase in domestic capacity in Brazil and a 7.2% rise in international operations. This expansion included new routes and contributed to a consolidated load factor of 85.5%. Despite stable cargo capacity, the cargo load factor decreased slightly. These developments indicate LATAM’s robust growth in passenger operations, particularly in Brazil, enhancing its market position.

The most recent analyst rating on (LTM) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.

LATAM Airlines Reduces Share Capital by $585 Million

On October 17, 2025, LATAM Airlines Group S.A. announced a significant reduction in its share capital following an Extraordinary Shareholders’ Meeting. The company decided to cancel 30,221,893,878 shares acquired under previous share repurchase programs, reducing its capital by approximately $585 million. This move aims to streamline the company’s capital structure and reflects a strategic adjustment in its financial management. The changes will be formalized through amendments to the company’s bylaws, impacting the company’s financial positioning and potentially affecting shareholder value.

The most recent analyst rating on (LTM) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on LATAM Airlines Group SA Sponsored ADR stock, see the LTM Stock Forecast page.