Key facts
- LATAM Airlines increased its 2026 adjusted EBITDA forecast to $4.1 billion-$4.4 billion.
- The airline's improved outlook is attributed to easing fuel price pressures.
- Second-quarter net profit fell to $125.2 million from $241.6 million a year ago.
- Second-quarter revenue rose 27% to $4.12 billion.
- Fuel costs nearly doubled in the second quarter, adding over $800 million in expenses.
- LATAM will introduce up to 14 Embraer E195-E2 jets in Brazil starting late 2026.
LATAM Airlines has revised its full-year core earnings forecast upwards for 2026, citing a more favorable outlook for fuel prices. The airline now anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $4.1 billion and $4.4 billion, an increase from its previous projection of $3.8 billion to $4.2 billion. This adjustment comes despite a significant rise in fuel costs during the second quarter.
Chief Financial Officer Ricardo Bottas stated that the improved fuel price scenario, with projections of around $150 per barrel for the third quarter and $130 for the fourth, justifies the upgrade. While these prices remain above pre-conflict levels of approximately $90 per barrel, the easing pressure from earlier highs linked to Middle East conflict has provided relief. Bottas acknowledged that the second half of the year will continue to present challenges due to geopolitical uncertainty but expressed confidence in the gradual recovery of the operating environment and the resilience of LATAM's business model.
In the second quarter, LATAM reported a net profit of $125.2 million, a decrease from $241.6 million in the same period last year. However, revenue climbed by 27% to $4.12 billion, driven primarily by passenger traffic, with cargo also contributing to the growth. The airline faced substantial fuel cost increases, with Bottas noting more than $800 million in additional fuel expenses within a single quarter.
Separately, LATAM announced the initial phase of its operations with Embraer's E195-E2 jets in Brazil. This initiative will involve introducing up to 14 aircraft between late 2026 and early 2027, servicing 42 routes. LATAM Brazil head Jerome Cadier indicated that these aircraft will support expansion in markets with strong corporate demand, such as agribusiness and oil-producing regions, while enhancing connectivity through the carrier's hubs. The company is already exploring approximately 18 potential destinations for further expansion in April 2027.