LATAM Airlines Group remained profitable in the second quarter despite a near doubling of fuel-related costs, underlining the resilience of its diversified business model while pushing ahead with a major fleet and network expansion in Brazil.
The Latin American carrier reported net income of US$125 million for the quarter and generated revenues of US$4.2 billion, a 28% increase compared with the same period last year. Operating margin reached 5.4%, despite what the company described as an exceptionally challenging fuel environment.
Fuel-related costs climbed 93.1% year-on-year to US$1.7 billion, while the average fuel price paid, including hedging, increased by 81.3%. Nevertheless, LATAM produced adjusted EBITDA of US$713 million during the quarter.
The group carried 21.1 million passengers during the period and increased consolidated capacity by 8.9%. International capacity rose 11.8%, with domestic operations also expanding across its key markets. Consolidated load factor remained strong at 81.8%.
Ricardo Bottas, chief financial officer of LATAM Airlines Group, said the results demonstrated the carrier's ability to navigate volatile market conditions.
"The second-quarter results demonstrate the group's structural strength, the value proposition offered to customers and its ability to operate in a volatile and uncertain environment," he said.
Bottas added that LATAM's revenue diversification, including premium travel, cargo activities and its loyalty business, helped offset the impact of soaring fuel costs and supported profitability during what is traditionally a weaker seasonal period.
Alongside its financial performance, LATAM highlighted plans to introduce Embraer E195-E2 aircraft into its Brazilian operation, marking a significant fleet development for the group. Between November 2026 and March 2027, LATAM Airlines Brazil expects to induct up to 14 E195-E2s, operating 42 routes and adding four destinations: Cabo Frio, Ji-Paraná, Macaé and Rondonópolis.
The expansion will increase LATAM's Brazilian domestic network to 67 destinations, up from 44 in 2019 and the largest domestic network in the airline's history. The carrier is also evaluating a further 18 destinations for a second phase of E2 deployment planned for 2027.
LATAM ended June with US$2.7 billion in cash and total liquidity of US$4.2 billion, while adjusted net leverage stood at 1.5x, below the maximum level set under its financial policy.
Looking ahead, the group reinstated its full-year guidance and expects capacity growth of 9%-10% in 2026. LATAM forecasts adjusted EBITDA of between US$4.1 billion and US$4.4 billion and said improving fuel-price expectations in the second half of the year support a more positive outlook.
