LATAM航空二季度营收增长但燃油成本大幅拖累利润

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Introduction & Market Context
LATAM Airlines Group (NYSE:LTM) presented its second quarter 2026 results on August 5, revealing a quarter of significant revenue growth tempered by unprecedented fuel cost pressures. The company reported total revenues of $4.2 billion, up 27.6% year-over-year, while maintaining profitability with net income of $125 million despite fuel costs nearly doubling from the prior year period.
The market responded positively to the results, with shares rising 4.63% to $58.235, as investors focused on strong operational execution and an improved full-year outlook rather than the near-term earnings pressure. Management characterized the second quarter as likely the most challenging period of 2026 from a fuel cost perspective, with an estimated headwind exceeding $700 million.
Quarterly Performance Highlights
The airline’s presentation highlighted resilience across key operational and financial metrics during what management described as an unprecedented fuel environment. As detailed in the company’s quarterly overview, LATAM achieved growth across multiple dimensions while preserving profitability.
Total passenger revenues climbed 27.9% to $3.6 billion, supported by an 8.9% increase in capacity and a 17.5% improvement in passenger unit revenue (PRASK) to 8.1 cents. Cargo revenues contributed $510 million, representing 21.8% growth year-over-year. The company maintained a consolidated load factor of 81.8%, down 1.7 percentage points from the prior year as capacity expansion slightly outpaced passenger growth.
The financial impact of fuel costs dominated the quarter’s expense profile. As shown in the detailed income statement, fuel expenses surged 93.1% to $1.7 billion, with the all-in fuel price reaching $194.5 per barrel compared to $107.1 in the second quarter of 2025.
Despite this cost pressure, LATAM maintained an adjusted operating margin of 5.4% and generated adjusted EBITDA of $713 million. Adjusted costs excluding fuel increased a more modest 14.0% to $2.2 billion, demonstrating operational discipline. Net income of $125 million represented a 48.2% decline from the prior year, primarily attributable to the fuel cost shock.
Segment Performance Analysis
The presentation provided granular detail on performance across LATAM’s three operating segments, revealing broad-based strength in unit revenue metrics that helped offset fuel pressures. The following comparative analysis illustrates how each segment contributed to the consolidated results.
Domestic Brazil operations showed particularly strong pricing power, with passenger unit revenue rising 23.7% in dollar terms (12.2% in Brazilian real terms) to 8.9 cents. Capacity in this segment increased 5.7% while the load factor stood at 80.7%. The domestic Spanish-speaking countries segment delivered 20.2% unit revenue growth in dollar terms to 9.6 cents, with capacity up 5.3%.
International operations, representing the largest segment by capacity, expanded 11.8% in available seat kilometers while achieving a 12.7% increase in passenger unit revenue to 7.2 cents. The international load factor of 83.3% remained the highest among the three segments despite a 1.6 percentage point year-over-year decline.
Revenue Quality Drivers
A key theme throughout the presentation was LATAM’s focus on revenue quality through its premium cabin offerings and LATAM Pass loyalty program. Management emphasized these initiatives as critical factors enabling the company to maintain profitability during the fuel crisis.
Premium revenues now account for 29% of total passenger revenues, with premium segment revenue growth outpacing main cabin performance by 9 percentage points. The premium net promoter score reached 59 points, three points higher than the overall passenger NPS of 56, indicating strong customer satisfaction with the differentiated product.
The LATAM Pass loyalty program demonstrated significant momentum, with membership reaching 56 million. Elite members—comprising Gold, Platinum, Black and Black Signature tiers—grew 26% year-over-year, while third-party sales from elite members surged 48%. Members of the loyalty program now generate 67% of passenger revenues, up from 60% in the prior year, providing a more stable and higher-quality revenue base.
Strategic Fleet and Network Expansion
LATAM announced the initial deployment plan for its new Embraer E195-E2 aircraft fleet in Brazil, marking a significant milestone in the company’s fleet modernization and network expansion strategy. The regional jets will enable LATAM to serve thinner routes and smaller markets more efficiently.
Beginning operations between November 2026 and March 2027, the Embraer aircraft will initially serve 42 routes in Brazil’s domestic market, including eight new routes and four new destinations: Cabo Frio, Ji-Paraná, Rondonópolis, and Macaé. This expansion will bring LATAM’s total domestic Brazilian destinations to 67, up from 44 in 2019, significantly enhancing the airline’s domestic network coverage.
The aircraft will feature a premium economy offering designed to maintain a consistent customer experience across aircraft types, supporting the company’s revenue quality strategy. Management indicated they are evaluating as many as 18 additional bases for future Embraer deployment beyond the initial rollout.
Cash Flow and Balance Sheet Strength
Despite the earnings pressure from elevated fuel costs, LATAM demonstrated strong cash generation and continued balance sheet improvement during the quarter. The company’s cash flow performance supported its financial flexibility and capacity for shareholder returns.
LATAM generated $476 million in adjusted operating cash flow during the second quarter. After accounting for capital expenditures net of financing ($168 million), financial interest expense ($85 million), and adjusted financial amortization ($75 million), the company increased its cash position by $110 million to $2.7 billion before dividend payments. The quarter included a $38 million dividend payment, representing the remaining mandatory distribution of 30% of 2025 net income following a $400 million interim dividend paid earlier.
The company’s liquidity and leverage metrics continued to strengthen, positioning LATAM well within its financial policy targets.
Total liquidity reached $4.2 billion at quarter-end, comprising $2.7 billion in cash and cash equivalents and $1.6 billion in undrawn revolving credit facilities. This represented 26.2% of last-twelve-months revenues, above the company’s 25% financial policy top range. Adjusted net leverage remained at 1.5 times, well below the 2.0x policy target, providing financial flexibility for both growth investments and shareholder returns.
Updated Full-Year Guidance
LATAM raised its full-year 2026 guidance across multiple metrics, reflecting improved fuel price assumptions for the second half and confidence in continued operational execution. The updated outlook suggests the company expects the fuel crisis that dominated the second quarter to moderate.
The company now expects full-year revenues of $17.3 billion to $17.7 billion, with adjusted EBITDA of $4.1 billion to $4.4 billion, representing a 23% to 25% margin. Adjusted operating income is projected at $2.1 billion to $2.3 billion, yielding a 12% to 13% operating margin. Year-end liquidity is expected to reach at least $4.7 billion, with adjusted net leverage at or below 1.6 times.
Capacity guidance calls for 9% to 10% total ASK growth versus 2025, with international operations leading at 11% to 12% growth, domestic Brazil expanding 8% to 9%, and Spanish-speaking domestic markets growing 4% to 5%. The guidance assumes jet fuel prices of $147 per barrel in the third quarter and $130 in the fourth quarter, substantially below the $194.50 experienced in the second quarter.
Key Takeaways
Management summarized four primary conclusions from the quarter’s performance, emphasizing the validation of LATAM’s business model under stress conditions.
The presentation highlighted that the company’s business model proved resilient through effective execution during unprecedented fuel cost pressure. LATAM’s diversified ecosystem and commercial flexibility enabled effective mitigation of higher fuel costs through pricing actions and revenue quality improvements. The premium customer segment and LATAM Pass loyalty program continue strengthening revenue quality and long-term competitive positioning. Finally, the updated 2026 guidance reflects both improved jet fuel price assumptions and management’s confidence in consistent operational execution.
With the fleet receiving nine aircraft during the quarter—including two widebody jets—and ending the period with 383 total aircraft, LATAM demonstrated its commitment to capacity growth even during a challenging cost environment. The company also announced that shareholders approved a new share repurchase program authorizing buybacks of up to 5% of outstanding shares over five years, providing additional flexibility for capital allocation alongside dividends and growth investments.
Full presentation:
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