LATAM Airlines reported record second quarter results, with company citing its “solid strategy, strong execution, and favourable fuel environment”.
The airline's revenues were up 8.2% to £3.3bn. Net income attributable to owners of the parent company soared 66% to $242 million, with its net income margin up 2.6 percentage points to 7.4%. Adjusted operating income rose 54.4% to $423 million, with adjusted operating margin climbing 3.9 percentage points to 12.9%. Adjusted EBITDAR improved 37.4% to $850 million and adjusted EBITDAR margin rose 5.5 percentage points to 25.9%.
“Demand remained robust throughout the quarter, reflecting the continued preference of passengers for LATAM group's differentiated value proposition,” management said in its report.
The airline's consolidated capacity increased 8.3% in the second quarter, with an average load factor of 83.5%, improving 1.2 percentage points. During the quarter, the company added 10 A320neos, one A321neo, and one A330 via short term lease. This brings it to a total of 14 aircraft received in 2025 so far.
“Our second quarter results clearly demonstrate the operational and financial strength of the group, and its ability to navigate a volatile and uncertain macroeconomic environment,” said LATAM Airlines Group CFO Ricardo Bottas. “LATAM group remains firmly committed to the disciplined execution of our profitable growth strategy, investing continuously in product and service enhancements, focussed on initiatives that elevate the customer experience across the group's network.”
Following the strong results, the company updated its guidance with overall capacity now expected to grow 8.5-9.5% in the full year, having previously estimated 7.5 to 9.5%. Revenues are expected to be around $14 to $14.2bn, lifted from previous guidance of $13.8 to $14.2bn. Adjusted EBITDAR is expected to be between $3.65bn and $3.85bn, up from $3.4bn and $3.75bn.
The company ended the quarter with $3.6bn in liquidity and a net leverage of 1.6x.