LATAM Airlines has raised its full year guidance based on strong first quarter financials, in addition to a stable demand outlook for the remainder of 2025.
The company now expects a stronger performance than previously forecast, raising its outlook for its adjusted operating margin to 13-15%, up from the earlier estimate of 12-13.5%. LATAM also expects earnings before interest, taxes, depreciation, amortisation and rental costs (EBITDAR) to range between $3.4-3.75bn, up from previous guidance of between $3.25-3.60bn.
The company also raised its forecast for passenger-carrying capacity, to between 7.5-9.5%, up from a previous estimate of 7-9%. The airline did however state that this guidance could be pulled at any time due, citing current global macroeconomic uncertainties.
"LATAM’s operational and financial adaptability enables the group to be well-prepared to face the coming months, leveraging its agility to deliver strong results and capture opportunities across the region,” said Ricardo Bottas, CFO of LATAM Airlines Group. “Despite a dynamic and challenging macroeconomic environment, the group continues to focus on driving profitable growth, elevating the customer experience, strengthening employee engagement, and generating value for LATAM Airlines Group.”
Looking at the first quarter of the year, LATAM posted an operating revenue of $3.4bn, an increase of 2.7% on the year prior. Passenger revenues amounted to $2.9bn of this total, increasing by 1.6% versus the same period of 2024.
The airline said that this was driven by a 7.3% capacity increase during the quarter and was offset by a 5.3% decrease in consolidated RASK to $7.10. Cargo revenues amounted to $406 million in the first quarter, improving 9.8% on the same period of last year.
Net profit during the quarter was up 38% on the year prior to $355 million.
Adjusted operating income totalled $573 million during the three-month period, an increase of 23.9% on 2024. The airline’s adjusted operating margin also increased 2.9 percentage points to 16.8%.
Adjusted EBITDAR was $962 million at the end of the quarter, an increase of 20.9% when compared to the same period of the previous year.
During the first quarter of 2025, LATAM’s capacity, measured in available seat-kilometres (ASKs), grew by 7.3%. The airline said this growth was primarily driven by a 10.7% increase in international operations. Additionally, the airline transported nearly 21 million passengers during the period, marking a 3.6% increase compared to the same quarter of 2024.
LATAM received two new A320neo aircraft, with these new planes part of 26 aircraft scheduled for delivery. LATAM plans to expand its total fleet from 348 aircraft at the end of the first quarter of the year to 371 by year-end, reaching 378 in 2026 before slightly decreasing to 376 in 2027.