Airlines Group (NYSE: LTM) earns $1.5B and lifts margins in 2025
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Airlines Group S.A. delivered a very strong 2025, posting full-year net income of US$1.5 billion, up 49.4%, on total revenue of US$14.5 billion, up 11.2%. Adjusted EBITDAR rose 31.6% to US$4.1 billion, lifting the margin to 28.2%, while adjusted operating margin improved to 16.2%.
The group carried 87.4 million passengers with an 8.2% capacity increase, and passenger unit revenue and premium demand both strengthened. Cash generation of about US$1.5 billion in adjusted levered free cash flow supported US$585 million of share repurchases and US$693 million in dividends, as adjusted net leverage improved to 1.5x and liquidity reached 25.7% of revenue.
Positive
- Strong profit and margin expansion: 2025 net income attributable to owners rose 49.4% to US$1.46 billion, with adjusted operating margin improving from 12.7% to 16.2% and adjusted EBITDAR margin from 23.8% to 28.2%.
- Robust cash generation and shareholder returns: Adjusted levered free cash flow reached about US$1.54 billion, funding US$585 million in share repurchases and US$693 million in dividends while still reducing net debt/adjusted EBITDAR to 1.5x.
- Healthy growth with premium mix improvement: Total revenues increased 11.2% on 8.2% capacity growth, passenger unit revenues rose, and premium revenues in 2025 were nearly double 2019 levels, supporting higher profitability.
- Clear 2026 growth and earnings guidance: The company guides to 8–10% ASK growth, US$15.5–16.0 billion in revenues, and adjusted EBITDA of US$4.20–4.60 billion with a 27–29% margin, indicating expectations for continued strong performance.
Negative
- None.
Insights
2025 results show powerful earnings, cash generation and balance-sheet strength, with only modest cost and cargo headwinds.
Airlines Group grew 2025 revenue to
Fourth-quarter trends reinforce this momentum: operating revenue increased 16.3% year over year to
Cash generation is a key highlight. Adjusted levered free cash flow reached about
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________________
FORM 6-K
_________________________________________________________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
February 2026
Commission File Number 1-14728
_________________________________________________________________
LATAM Airlines Group S.A.
(Translation of Registrant’s Name Into English)
_________________________________________________________________
Presidente Riesco 5711, 20th floor
Las Condes
Santiago, Chile
(Address of principal executive offices)
_________________________________________________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F o
LATAM AIRLINES GROUP S.A.
The following exhibit is attached:
| EXHIBIT NO. | DESCRIPTION | |||||||
| 99.1 | LATAM Airlines Group 4Q 2025 Results | |||||||
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: February 3, 2026 | LATAM AIRLINES GROUP S.A. | |||||||
| By: | /s/ Ricardo Bottas | |||||||
| Name: | Ricardo Bottas | |||||||
| Title: | Chief Financial Officer | |||||||
2
4Q 2025 Results |  | ||||
LATAM reports US$1.5 billion net income alongside 8.2% capacity increase for the full year, reflecting continued profitable growth
Santiago, Chile, February 3, 2026 – LATAM Airlines Group S.A. (NYSE: LTM; SSE: LTM) announced today its consolidated financial results for the fourth quarter ending December 31, 2025. References to "LATAM", "LATAM Airlines Group", the “Company” or the "parent company" pertain to LATAM Airlines Group S.A., and references to “LATAM group,” “we,” “us,” “our,” or the “group” refer to LATAM Airlines Group S.A. and its consolidated affiliates, both passenger and cargo affiliates. LATAM prepares its financial statements under IFRS as issued by the IASB, however, for ease of presentation and comparison, the Income Statement in this report is presented in an adapted US Format. On some occasions, adjustments to these Income Statement figures are made for Special Items. A table reconciling the figures adjusted for Special Items to their as-reported IFRS figures can be found at the end of the report. All figures in this report are expressed in U.S. dollars. Percentages and certain U.S. dollar, Chilean peso and Brazilian real amounts contained in this report have been rounded for ease of presentation. Any discrepancies in any table between totals and the sums of the amounts listed are due to rounding. The Brazilian real / U.S. dollar average exchange rate for the quarter was BRL 5.39 per USD (compared to BRL 5.83 per USD in 4Q 2024).
HIGHLIGHTS
Key Financial Results and Indicators | FY25 | FY24 | Var. | ||||||||
Total Revenues (US$ million) | 14,495 | 13,034 | +11.2% | ||||||||
Adjusted EBITDAR (US$ million) | 4,091 | 3,108 | +31.6% | ||||||||
| Adjusted EBITDAR Margin | 28.2% | 23.8% | +4.4pp | ||||||||
Adjusted Operating Income (US$ million) | 2,355 | 1,660 | +41.8% | ||||||||
| Adjusted Operating Margin | 16.2% | 12.7% | +3.5pp | ||||||||
| Net Income attributable to owners of the parent company (US$ million) | 1,460 | 977 | +49.4% | ||||||||
| Net Income Margin | 11.2% | 6.9% | +4.3pp | ||||||||
Diluted Earnings per ADS (US$) | 4.95 | 3.23 | +53.3% | ||||||||
| Passenger RASK (US$ cents) | 7.4 | 7.1 | +3.8% | ||||||||
| Adjusted Passenger CASK ex-fuel (US$ cents) | 4.4 | 4.2 | +4.6% | ||||||||
•LATAM group transported 87.4 million passengers in 2025, supported by an 8.2% increase in capacity, consolidating its operation as the largest airline group in the Southern Hemisphere. On average every day over 239,000 passengers choose to fly LATAM group affiliate airlines, reflecting strong customer preference.
•LATAM group's cargo affiliates transported over 1 million tons in 2025 as the largest cargo group in the region.
•LATAM generated US$4.1 billion in adj. EBITDAR during 2025, a 31.6% increase versus 2024, with an adj. EBITDAR margin of 28.2%, marking a 4.4pp expansion. Fourth quarter adj. EBITDAR reached US$1.1 billion with a margin of 28.6%, demonstrating continued strength in operational performance and cash generation.
•Full year net income attributable to owners of the parent company totaled US$1.5 billion, representing an 11.2% net income margin and an increase of 49.4% versus 2024 results, demonstrating LATAM's ability to convert strong operational performance into bottom-line growth.
•Strong cash generation of US$1.4 billion during 2025 enabled LATAM to allocate US$585 million to share repurchases. Separately LATAM distributed US$400 million interim dividend in December, in addition to US$293 million in statutory dividends paid in the second quarter, all while maintaining balance sheet strength.
•During 2025, LATAM group was recognized with multiple international awards for its industry-leading performance and customer experience. In December, the group received the "Most Improved Brand" distinction globally and "Design Airline of the Year - South America" from TheDesignAir™, marking its eighth regional win. These accolades complement LATAM's fourth consecutive "Five-Star Global Airline" recognition from APEX and its sixth consecutive "Best Airline in South America" award from Skytrax. On the cargo side, LATAM Cargo Group was named "Cargo Airline of the Year 2025" by Air Cargo News, the only South American winner across all categories, recognizing its operational excellence, innovation, and customer service.
1
4Q 2025 Results | | ||||
MANAGEMENT COMMENTS - FULL YEAR 2025
LATAM delivered a strong close to 2025 with results that reflect the structural strength LATAM group has built over the past three years. At the center of these achievements are the more than 41,000 people employed by the different affiliates of the group, whose daily commitment at every customer touchpoint and behind the scenes is what differentiates LATAM group. During 2025, organizational climate, motivation and commitment measured by the Organizational Health Index (OHI), reached a record 83 points, pushing LATAM group into the top decile of the global benchmark for the first time.
The culture of passionate and committed people translates directly into the experience passengers have. The group's Net Promoter Score (NPS) reached 54 points for the full year, an increase of 3 points versus 2024 and the highest full-year result for the group, validating that when employees are engaged and motivated, customers perceive it in every interaction.
"We closed 2025 satisfied with the progress made in the consolidation of LATAM. The results reflect a strengthened business model, supported by a differentiated value proposition, consistent operational execution and financial discipline, which has enabled the group to grow profitably and sustainably”, said Roberto Alvo, CEO of LATAM Airlines Group.
Over the past few years, LATAM has demonstrated year-over-year margin expansion, independent of favorable industry cycles. It is the consequence of a differentiated value proposition based on three pillars - choice, dependability, and care - alongside a focus on cost efficiency and profitability. These elements resonate across the markets where the group operates, with strong and consistent results across geographies, demonstrating that LATAM group's performance is broad-based, not dependent on a single market.
The evolution of the premium segment illustrates the strength of this strategy. Premium revenues in 2025 represent nearly double those of 2019—a leap that validates LATAM group's success in differentiating its product. This is not simply a strategy of adding premium seats; it is the result of superior and consistent execution at every touchpoint, from the decision to fly with LATAM group until bags arrive at their final destination. The fourth quarter launch of the redesigned premium business cabin experience is the most recent update to customer experience. Upcoming initiatives, including the rollout of Wi-Fi on board wide-body aircraft starting in 2026, the Premium Comfort cabin in 2027 and the a new Signature Lounge in São Paulo.
The strength of LATAM's premium performance is complemented by equally disciplined cost control to support margin expansion. The group maintains a relentless focus on operational efficiency, with hundreds of active initiatives at any given time driving continuous improvements across every aspect of the operation. From optimizing aircraft utilization to streamlining maintenance processes, LATAM group continuously finds ways to do more with less without compromising the customer experience.
The outcome of this dual focus on revenue quality and cost efficiency translate directly into financial strength. The group generated over US$1.5 billion in adjusted levered free cash flow during 2025, enabling the distribution of a US$400 million interim dividend in December, while simultaneously strengthening the balance sheet. Adjusted net leverage improved to 1.5x, and liquidity remained robust at 25.7% of last twelve months revenues. This financial position provides LATAM undisputed strength—the capacity to invest in growth, technology, and customer experience.
2
4Q 2025 Results | | ||||
MANAGEMENT DISCUSSION AND ANALYSIS OF FOURTH QUARTER 2025 RESULTS
Total operating revenues amounted to US$3,949 million in the fourth quarter, an increase of 16.3% compared to the same period of 2024, explained by a 20.3% increase in passenger revenues and a 9.6% decrease in cargo revenues. For the fourth quarter of 2025, passenger and cargo revenues represented 87.4% and 10.8% of total operating revenues, respectively.
•Passenger revenues amounted to US$3,450 million in the fourth quarter, increasing 20.3% versus the same period of 2024. Passenger unit revenue (PRASK) reached US$7.8 cents, representing an 11.7% increase versus the same period of 2024, alongside 7.7% capacity growth, signaling robust yield performance and strong premium revenue growth.
•Cargo revenues amounted to US$425 million in the fourth quarter, decreasing 9.6% versus the same period of 2024, as market conditions normalized following the strong performance in late 2024. Cargo capacity, measured in ATKs, remained essentially flat, while cargo unit revenue (RATK) decreased 9.4% year-over-year.
•Other income amounted to US$74 million in the fourth quarter, an increase of US$17 million compared to the same period of 2024, supported by strong performance in ancillary services sales LATAM Travel business.
Total adjusted operating expenses reached US$3,288 million during the quarter, increasing 12.1% versus 4Q24. This increase was primarily driven by an 7.7% expansion in passenger operations, and the appreciation of local currencies, mainly the Brazilian real (BRL) which strengthened approximately 8% versus the U.S dollar, and partially offset by a 2.1% reduction in average jet fuel prices (including hedges). Adjusted passenger CASK ex-fuel rose 7.9% to US$4.7 cents in the quarter with local currency appreciation contributing approximately US$0.2 cents to the increase, and another US$0.2 cents related to other non-recurring costs in wages and benefits, which include a special, one-time bonus. For the full year 2025, adjusted passenger CASK ex-fuel was US$4.4 cents, in line with the company's updated guidance range for 2025.
The changes in adjusted operating expenses during the quarter were mainly explained by:
•Wages and benefits rose 31.2% year-over-year, influenced by an efficient growth of approximately 2,500 additional employees on average supporting operational growth. The increase was further amplified by the appreciation of the local currencies, and higher compensation paid by the respective affiliates to their employees, including a special, one-time bonus of US$40 million in recognition of the strong results in recent years. Additionally, there was a reversal of a provision related to the concept entitled Corporate Incentive Plan totaling US$13 million.
•Aircraft fuel costs increased 4.1% versus the same period of 2024, driven by a 2.1% decrease in the average jet fuel price (including hedges) and partially offset by a 6.3% increase in fuel consumption associated with the expansion of operations.
•Commissions to agents increased 36.8% compared to 4Q24, primarily driven by higher corporate sales volumes, greater mix of international segment revenues, and passenger RASK expansion of 11.7% year-over-year.
•Depreciation and amortization increased 16.3% versus 4Q24, primarily due to a higher average number of aircraft in the fleet. During the fourth quarter of 2025, LATAM group operated an average of 368 aircraft, up from 344 aircraft in the same period of last year. The increase also reflects the incorporation of newer and higher-value aircraft as part of the fleet renewal strategy.
•Other rental and landing fees increased 13.4% year-over-year, mainly due to higher operational activity and the appreciation of local currencies, particularly the Brazilian real.
•Passenger services expenses rose 17.9% versus the same period of 2024, driven by growth in international passenger traffic and an increased segment of premium travelers.
•Maintenance expenses totaled US$265 million, corresponding to a 13.3% increase versus 4Q24, primarily a result of the increase of the operation and fleet expansion.
3
4Q 2025 Results | | ||||
•Other operating expenses remained flat, increasing only 0.2% compared to 4Q24, and amounted to US$422, driven primarily by higher software and infrastructure services, marketing, selling expenses and crew variable costs, and offset by lower booking system costs and tax contingencies.
•Other gains and losses totaled a US$18 million loss for the fourth quarter, explained by labor contingencies in Argentina.
Non-operating results
•Interest income amounted to US$46 million in the quarter, increasing US$12 million year-over-year due to higher average cash balances compared to 4Q24.
•Interest expense decreased 48.6% versus 4Q24, to US$157 million. The prior year quarter included a US$134 million one-time charge related to the liability management exercise completed in October 2024, while the current quarter reflects a significant interest expense decrease resulting from the lower cost of debt.
•Foreign exchange gains and losses amounted to US$5 million in profit in the fourth quarter of 2025, primarily driven by the depreciation of the Brazilian real from BRL 5.32 per USD in September 30, 2025 to BRL 5.50 per USD on December 31, 2025.
•Result of indexation units amounted to US$0.05 million in the quarter.
•Net income attributable to the owners of the parent company during the quarter amounted to US$484 million, an increase of 78.1% year-over-year. Net income attributable to owners of the parent company serves as the basis for calculating dividend distributions.
4
4Q 2025 Results | | ||||
LIQUIDITY AND FINANCING
LATAM Airlines Group ended the period with cash and cash equivalents of US$2,150 million (+9.8% vs December 31, 2024). Throughout the year, LATAM has generated more than US$1,382 million in cash, prior to share repurchases for US$585 million. Separately, LATAM distributed dividends totaling US$693 million, US$293 million in statutory dividends in the second quarter and a US$400 million interim dividend approved in December. Additionally, LATAM has US$1,575 million in available and fully undrawn revolving credit facilities (“RCF”). Liquidity as a percentage of revenues of last twelve months stood at 25.7%.
At year end, LATAM had a financial debt of US$4.3 billion and lease liabilities of US$3.8 billion, resulting in a total accounting debt of US$8.1 billion and net debt of US$5.9 billion. At the end of the period, LATAM's adjusted net leverage stood at 1.5x.
| Debt Composition | Nominal Debt (million) | Accounting Debt (million) | Interest Rate | Maturity | ||||||||||
| 2030 Senior Secured Notes | US$1,400 | US$1,398 | 7.875% | 2030 | ||||||||||
| 2031 Senior Secured Notes | US$800 | US$814 | 7.625% | 2031 | ||||||||||
| Spare Engine Facility | US$275 | US$276 | Term SOFR 3M + 2.1% | 2028 | ||||||||||
| UF Bond | US$164 | US$165 | UF + 2.0% | 2042 | ||||||||||
| Fleet Financial Debt | US$1,643 | US$1,642 | 5.37% | — | ||||||||||
| Total Financial Debt | US$4,283 | US$4,296 | 6.60% | — | ||||||||||
MARKET RISKS MANAGEMENT
LATAM’s fuel hedging policy has the main objective of protecting against medium-term liquidity risk from fuel price increases, while benefiting from fuel price reductions. Accordingly, LATAM hedges a portion of its estimated fuel consumption. Hedge positions per quarter for the next 12 months, as of January 30, 2025, are shown in the table below:
Fuel hedging | 1Q26 | 2Q26 | 3Q26 | 4Q26 | ||||||||||
| Hedge positions | ||||||||||||||
| Estimated Fuel consumption hedged | 48% | 44% | 31% | 22% | ||||||||||
On the other hand, LATAM’s foreign exchange risk mainly comes from operations in currencies other than its functional currency, the US dollar. The largest operational cash flow exposure comes from the concentration of businesses in Brazil by LATAM Airlines Brazil, which are mostly denominated in Brazilian real. To a lesser degree, LATAM is also exposed to other currencies like the Euro, British pound, and several Latin American currencies. BRL cash flow hedge positions per quarter for the next months, as of January 30, 2025, are shown in the table below:
FX hedging (BRL) | 1Q26 | 2Q26 | 3Q26 | 4Q26 | ||||||||||
| Hedge positions | ||||||||||||||
Estimated cash flow mismatch hedged | 56% | 38% | 20% | 2% | ||||||||||
5
4Q 2025 Results | | ||||
LATAM FLEET PLAN
LATAM group’s fleet consists of 291 Airbus narrow-body aircraft, three Airbus wide-body aircraft under short-term leases, 57 Boeing wide-body aircraft and 20 Boeing cargo freighters, totaling 371 aircraft. During the fourth quarter, the group received five A320Neo, two A321Neo and one B787-9. In total, 26 aircraft were received during the year, including 21 A320Neo, three A321Neo, one B787-9, and one A330 under a short-term lease.
As of the date of publication, LATAM group has fleet commitment agreements with Airbus, Boeing, and Embraer for new aircraft. Additionally, the group has signed several contracts with lessors to receive narrow-body aircraft and Boeing wide-body aircraft in the coming years, as detailed below:
| Fleet Plan | 2025 | Projected as of the end of each year | ||||||||||||
| 2026 | 2027 | 2028 | ||||||||||||
| Passenger Aircraft | ||||||||||||||
| Narrow Body | ||||||||||||||
| Airbus Ceo Family | 223 | 223 | 210 | 198 | ||||||||||
| Airbus Neo Family | 68 | 94 | 109 | 144 | ||||||||||
Embraer E2 Family | 12 | 24 | 24 | |||||||||||
| Total NB | 291 | 329 | 343 | 366 | ||||||||||
| Wide Body | ||||||||||||||
| Boeing 787 | 38 | 41 | 41 | 47 | ||||||||||
| Other | 22 | 21 | 19 | 19 | ||||||||||
| Total WB | 60 | 62 | 60 | 66 | ||||||||||
| TOTAL | 351 | 391 | 403 | 432 | ||||||||||
| Cargo Aircraft | ||||||||||||||
| Boeing 767-300F | 20 | 19 | 19 | 19 | ||||||||||
| TOTAL | 20 | 19 | 19 | 19 | ||||||||||
| TOTAL FLEET (end of the period) | 371 | 410 | 422 | 451 | ||||||||||
| AVERAGE FLEET | 358 | 388 | 419 | 433 | ||||||||||
Note: This fleet plan considers LATAM group's best estimates for committed arrivals, current decisions regarding aircraft sales, retirements and lease extensions. In the Financial Statements, Note 13 describes the aircraft that are currently held for sale.
6
4Q 2025 Results | | ||||
2026 GUIDANCE
Guidance for the full year 2026 was issued on December 3, 2025, as detailed below:
| Indicator | Guidance | 2026E | |||||||||
| Operating Indicators | Total ASK Growth vs 2025 | 8.0 | % - | 10.0% | |||||||
| Domestic Brazil ASK Growth vs 2025 | 6.0 | % - | 8.0% | ||||||||
| Domestic Spanish Speaking Countries ASK Growth vs 2025 | 5.0 | % - | 7.0% | ||||||||
| International ASK Growth vs 2025 | 11.0 | % - | 13.0% | ||||||||
| Total ATK Growth vs 2025 | 5.0 | % - | 7.0% | ||||||||
| Financial Indicators | Revenues (US$ billion) | 15.5 - | 16.0 | ||||||||
Adjusted CASK ex fuel1 (US$ cents) | 4.75 - | 4.95 | |||||||||
Adjusted Passenger CASK ex fuel1 (US$ cents) | 4.30 - | 4.50 | |||||||||
Adjusted Operating Income2 (US$ billion) | 2.35 - | 2.65 | |||||||||
Adjusted Operating Margin2 | 15.0 | % - | 17.0% | ||||||||
Adjusted EBITDA2 (US$ billion) | 4.20 - | 4.60 | |||||||||
Adjusted EBITDA Margin2 | 27.0 | % - | 29.0% | ||||||||
Adjusted Levered Free Cash Flow3 (US$ billion) | >1.7 | ||||||||||
Liquidity4 (US$ billion) | >5.0 | ||||||||||
Total Net Debt5 (US$ billion) | <6.2 | ||||||||||
| Total Net Debt/Adjusted EBITDAR (x) | ≤1.4x | ||||||||||
| Assumptions | |||||||||||
| Average exchange rate (BRL/USD) | 5.5 | ||||||||||
Jet fuel price6 (US$/bbl) | 90 | ||||||||||
1) Adjusted CASK ex-fuel includes adjustments to add back the effect of other gains and losses and employee compensations associated with the Corporate Incentive Plan. Adjusted Passenger CASK ex fuel is further adjusted to exclude cargo costs associated with belly and freighter operations.
2) Adjusted Operating Income excludes other gains and losses and employee compensations associated with the Corporate Incentive Plan. Adjusted EBITDA is further adjusted to exclude foreign exchange gains and results of indexation units
3) Adjusted Levered Free Cash Flow calculated as the sum of net cash (outflow) inflow from operating and investing activities, adding payments from lease liabilities (amortization and interest) and financing predelivery payments, excluding amounts raised from the sale of property, plant and equipment, adding aircraft and non-aircraft financing interest.
4) Liquidity is defined as Cash and Cash Equivalents and undrawn, committed revolving credit facilities. Assumes a minimum statutory dividend distribution equivalent to 30% of net income.
5) Total Net Debt includes operating lease liabilities, financial leases and other financial debt, and net of Cash and Cash Equivalents. Assumes a minimum statutory dividend distribution equivalent to 30% of net income.
6) The jet fuel price projection does not include into-wing cost.
Note on forward-looking assumptions, outlooks and expectations are not facts but rather a good faith estimate of reality based on selected information believed to be reasonable. However, reality may differ from assumptions, outlooks and expectations. This report also contains forward-looking statements. Such statements may contain words such as “could,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “believe” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on LATAM's current plans, estimates and projections and, therefore, you should not place undue reliance on such statements or the estimates arising from them. Forward-looking statements involve known and unknown inherent risks, uncertainties and other factors, many of which are beyond LATAM's control and are difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. The financial information contained herein does not constitute or replace in any way the submission of the corresponding financial statements of the Commission for the Financial Market (CMF) and the market, in terms of their content requirements, applicable procedures and deadlines of submission corresponding to the CMF in accordance with current regulations. These factors and uncertainties include in particular those described in documents we have filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update any of them, whether as a result of new information, future events or any other factor. Our results may not be indicative of future performance, which remains subject to a number of uncertainties, including the risks disclosed in our annual report on Form 20-F, which was filed on March 13, 2025, and especially the risks and uncertainties associated with global developments, including the conflicts in the Middle East, the more recent country-specific tariffs imposed by the U.S. Commerce Department for goods imported in the United States and the retaliatory measures imposed in response by certain countries, and its impact on the currency exchanges, the worldwide supply chain and the availability of inventory and the prices of goods in general in commerce. In addition, as disclosed in our annual report on Form 20-F, our business is seasonal and our passenger revenues are generally higher in the first and fourth quarters of each year, during the Southern Hemisphere’s spring and summer. Finally, demand for air travel and cargo services is influenced by a number of factors beyond our control, including global, regional and national political and socioeconomic developments as well as changes in our competitive landscape, all of which could have a material impact on our ability to achieve the guidance disclosed herein.
7
4Q 2025 Results | | ||||
FINANCIAL STATEMENTS PUBLICATION AND CONFERENCE CALL
LATAM Airlines Group S.A. filed its financial statements for the period ended December 31, 2025 with the Comisión para el Mercado Financiero (CMF) of Chile on February 3, 2026. These financial statements are available in Spanish and English at http://www.ir.latam.com For further inquiries, please contact the Investor Relations team at InvestorRelations@latam.com.
The Company will hold a conference call to discuss the fourth quarter 2025 financial results on February 4, 2026, at 8:00 am ET / 10:00 am Santiago.
Webcast Link: Click here
Participant Call Link: Click here
About LATAM Airlines Group S.A.:
LATAM Airlines Group S.A. and its affiliates are the principal group of airlines in Latin America present in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, in addition to international operations within Latin America and to / from Europe, the United States, Oceania, Africa and the Caribbean.
The group has a fleet of Boeing 767, 777, 787, Airbus A321, A321Neo, A320, A320Neo, and A319 aircraft. Additionally, the Airbus 330, operated under short-term leases, is also part of the current operations.
LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the LATAM group cargo subsidiaries. In addition to having access to the bellies of the passenger affiliates's aircraft, they have a fleet of 20 freighters. They operate on the LATAM group network as well as international routes that are exclusively operated by freighters. They offer modern infrastructure, a wide variety of services and protection options to meet all customer needs.
For LATAM press inquiries, please write to comunicaciones.externas@latam.com. Additional financial information is available at ir.latam.com.
8
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Operational Statistics
| For the three month period ended December 31, | For the twelve month period ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||
| System | |||||||||||||||||||||||
| Costs per ASK (US$ cents) | 7.5 | 7.2 | 3.8% | 7.1 | 7.3 | (2.2%) | |||||||||||||||||
| Adjusted Costs per ASK (US$ cents) | 7.4 | 7.1 | 4.1% | 7.1 | 7.2 | (1.3%) | |||||||||||||||||
| Costs per ASK ex fuel (US$ cents) | 5.3 | 4.9 | 7.1% | 4.9 | 4.8 | 2.7% | |||||||||||||||||
| Adjusted Costs per ASK ex fuel (US$ cents) | 5.3 | 4.9 | 7.6% | 4.9 | 4.7 | 4.1% | |||||||||||||||||
Adjusted Passenger CASK ex fuel (US$ cents) | 4.7 | 4.4 | 7.9% | 4.4 | 4.2 | 4.6% | |||||||||||||||||
| Fuel Gallons Consumed (millions) | 376 | 354 | 6.3% | 1,444 | 1,357 | 6.4% | |||||||||||||||||
| Fuel Gallons Consumed per 1,000 ASKs | 8.5 | 8.6 | (1.3%) | 8.5 | 8.6 | (1.6%) | |||||||||||||||||
| Fuel Price (with hedge) (US$ per gallon) | 2.58 | 2.63 | (2.1%) | 2.63 | 2.93 | (9.9%) | |||||||||||||||||
| Fuel Price (without hedge) (US$ per gallon) | 2.58 | 2.57 | 0.2% | 2.62 | 2.91 | (10.0%) | |||||||||||||||||
| Average Trip Length (km) | 1.638 | 1.632 | 0.4% | 1.649 | 1.623 | 1.5% | |||||||||||||||||
| Total Number of Employees (average) | 40,263 | 37,767 | 6.6% | 39,507 | 36,960 | 6.9% | |||||||||||||||||
| Total Number of Employees (end of the period) | 41,125 | 38,664 | 6.4% | 41,125 | 38,664 | 6.4% | |||||||||||||||||
| Passenger | |||||||||||||||||||||||
| ASKs (millions) | 44,175 | 41,022 | 7.7% | 170,812 | 157,931 | 8.2% | |||||||||||||||||
| RPKs (millions) | 37,585 | 35,082 | 7.1% | 144,110 | 133,138 | 8.2% | |||||||||||||||||
| Passengers Transported (thousands) | 22,952 | 21,501 | 6.7% | 87,414 | 82,007 | 6.6% | |||||||||||||||||
| Load Factor (based on ASKs) % | 85.1% | 85.5% | (0.4pp) | 84.4% | 84.3% | 0.1pp | |||||||||||||||||
| Yield based on RPKs (US$ cents) | 9.2 | 8.2 | 12.3% | 8.8 | 8.4 | 3.7% | |||||||||||||||||
| Revenues per ASK (US$ cents) | 7.8 | 7.0 | 11.7% | 7.4 | 7.1 | 3.8% | |||||||||||||||||
| Cargo | |||||||||||||||||||||||
| ATKs (millions) | 2,138 | 2,142 | (0.2%) | 8,313 | 8,066 | 3.1% | |||||||||||||||||
| RTKs (millions) | 1,149 | 1,198 | (4.1%) | 4,427 | 4,330 | 2.2% | |||||||||||||||||
| Tons Transported (thousands) | 262 | 270 | (3.0%) | 1,007 | 998 | 0.9% | |||||||||||||||||
| Load Factor (based on ATKs) % | 53.8% | 55.9% | (2.1pp) | 53.3% | 53.7% | (0.4pp) | |||||||||||||||||
| Yield based on RTKs (US$ cents) | 37.0 | 39.2 | (5.7%) | 37.4 | 36.9 | 1.1% | |||||||||||||||||
| Revenues per ATK (US$ cents) | 19.9 | 21.9 | (9.4%) | 19.9 | 19.8 | 0.3% | |||||||||||||||||
Note: Adjusted figures include adjustments to add back the effect of other gains and losses, variable Aircraft Rental expenses (non-cash P&L effect) and employee compensation associated with the Corporate Incentive Plan. Adjusted Passenger CASK ex fuel also excludes cargo costs associated with belly and freighter operations.
9
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Financial Results for the Fourth Quarter 2025 (in thousands of US Dollars)
| For the three month period ended December 31, | |||||||||||||||||
| 2025 | Adjustments | 2025 Adjusted | 2024 Adjusted | % Change | |||||||||||||
| REVENUE | |||||||||||||||||
| Passenger | 3,449,875 | — | 3,449,875 | 2,867,457 | 20.3% | ||||||||||||
| Cargo | 424,801 | — | 424,801 | 469,885 | (9.6%) | ||||||||||||
| Other Income | 74,372 | — | 74,372 | 57,838 | 28.6% | ||||||||||||
| TOTAL OPERATING REVENUE | 3,949,048 | — | 3,949,048 | 3,395,180 | 16.3% | ||||||||||||
| EXPENSES | |||||||||||||||||
| Wages and Benefits | (554,709) | (13,160) | (567,869) | (432,790) | 31.2% | ||||||||||||
| Aircraft Fuel | (968,495) | — | (968,495) | (930,093) | 4.1% | ||||||||||||
| Commissions to Agents | (73,224) | — | (73,224) | (53,528) | 36.8% | ||||||||||||
| Depreciation and Amortization | (468,068) | — | (468,068) | (402,620) | 16.3% | ||||||||||||
| Other Rental and Landing Fees | (411,751) | — | (411,751) | (362,970) | 13.4% | ||||||||||||
| Passenger Services | (111,524) | — | (111,524) | (94,607) | 17.9% | ||||||||||||
| Aircraft Maintenance | (264,508) | — | (264,508) | (233,517) | 13.3% | ||||||||||||
| Other Operating Expenses | (422,476) | — | (422,476) | (421,775) | 0.2% | ||||||||||||
| Other gains/(losses) | (17,780) | 17,780 | — | — | n.m | ||||||||||||
| TOTAL OPERATING EXPENSES | (3,292,535) | 4,620 | (3,287,915) | (2,931,900) | 12.1% | ||||||||||||
| OPERATING INCOME/(LOSS) | 656,513 | 4,620 | 661,133 | 463,280 | 42.7% | ||||||||||||
| Operating Margin | 16.6% | 0.1pp | 16.7% | 13.6% | 3.1pp | ||||||||||||
| Interest Income | 45,918 | — | 45,918 | 33,711 | 36.2% | ||||||||||||
| Interest Expense | (157,452) | — | (157,452) | (306,388) | (48.6%) | ||||||||||||
| Foreign exchange gains | 5,110 | (5,110) | — | — | n.m | ||||||||||||
| Result of indexation units | 52 | (52) | — | — | n.m | ||||||||||||
| INCOME/(LOSS) BEFORE TAXES | 550,141 | (542) | 549,599 | 190,603 | 188.3% | ||||||||||||
| Income Taxes | (65,917) | — | (65,917) | (18,410) | 258.0% | ||||||||||||
| NET INCOME/(LOSS) | 484,224 | (542) | 483,682 | 172,193 | 180.9% | ||||||||||||
| Attributable to: | |||||||||||||||||
| Owners of the parent company | 484,289 | (542) | 483,747 | 174,443 | 177.3% | ||||||||||||
| Non-controlling interest | (65) | — | (65) | (2,250) | (97.1%) | ||||||||||||
| NET INCOME/(LOSS) attributable to the owners of the parent company | 484,289 | (542) | 483,747 | 174,443 | 177.3% | ||||||||||||
| Net Margin attributable to the owners of the parent company | 12.3% | 0.0pp | 12.2% | 5.1% | 7.1pp | ||||||||||||
| Effective Tax Rate | (12.0%) | 0.0pp | (12.0%) | (9.7%) | -2.3pp | ||||||||||||
Financial Metrics for the Fourth Quarter 2025 | |||||||||||||||||
| For the three month period ended December 31, | |||||||||||||||||
| 2025 | 2024 | Change (%) | |||||||||||||||
Diluted Earnings per ADS (US$) | 1.69 | 0.90 | 87.5% | ||||||||||||||
Diluted Earnings per Share (US$) | 0.000843 | 0.000450 | 87.5% | ||||||||||||||
| Adjusted EBITDAR (in thousands of US Dollars) | 1,129,201 | 865,900 | 30.4% | ||||||||||||||
| Adjusted EBITDAR Margin | 28.6% | 25.5% | 3.1pp | ||||||||||||||
Note: Adjustments include adjustments to add back the effect of other gains and losses, variable Aircraft Rental expenses (non-cash P&L effect), employee compensation associated with the Corporate Incentive Plan, foreign exchange gains and results of indexation units.
10
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Financial Results for the twelve-month period ended December (in thousands of US Dollars)
| For the twelve month period ended December 31, | |||||||||||||||||
| 2025 | Adjustments | 2025 Adjusted | 2024 Adjusted | Var. % | |||||||||||||
| REVENUE | |||||||||||||||||
| Passenger | 12,611,528 | — | 12,611,528 | 11,233,287 | 12.3% | ||||||||||||
| Cargo | 1,653,528 | — | 1,653,528 | 1,599,756 | 3.4% | ||||||||||||
| Other Income | 229,934 | — | 229,934 | 200,669 | 14.6% | ||||||||||||
| TOTAL OPERATING REVENUE | 14,494,990 | — | 14,494,990 | 13,033,712 | 11.2% | ||||||||||||
| EXPENSES | |||||||||||||||||
| Wages and Benefits | (1,941,121) | 18,212 | (1,922,909) | (1,659,687) | 15.9% | ||||||||||||
| Aircraft Fuel | (3,804,821) | — | (3,804,821) | (3,970,077) | (4.2%) | ||||||||||||
| Commissions to Agents | (252,670) | — | (252,670) | (230,127) | 9.8% | ||||||||||||
| Depreciation and Amortization | (1,736,098) | — | (1,736,098) | (1,447,656) | 19.9% | ||||||||||||
| Other Rental and Landing Fees | (1,638,809) | — | (1,638,809) | (1,470,057) | 11.5% | ||||||||||||
| Passenger Services | (382,252) | — | (382,252) | (331,918) | 15.2% | ||||||||||||
| Aircraft Maintenance | (862,647) | — | (862,647) | (815,916) | 5.7% | ||||||||||||
| Other Operating Expenses | (1,539,833) | — | (1,539,833) | (1,448,052) | 6.3% | ||||||||||||
| Other gains/(losses) | (1,201) | 1,201 | — | — | n.m | ||||||||||||
| TOTAL OPERATING EXPENSES | (12,159,452) | 19,413 | (12,140,039) | (11,373,490) | 6.7% | ||||||||||||
| OPERATING INCOME/(LOSS) | 2,335,538 | 19,413 | 2,354,951 | 1,660,222 | 41.8% | ||||||||||||
| Operating Margin | 16.1% | 0.1pp | 16.2% | 12.7% | 3.5pp | ||||||||||||
| Interest Income | 146,275 | — | 146,275 | 142,411 | 2.7% | ||||||||||||
| Interest Expense | (721,416) | — | (721,416) | (881,950) | (18.2%) | ||||||||||||
| Foreign exchange gains | (141,485) | 141,485 | — | — | n.m | ||||||||||||
| Result of indexation units | (294) | 294 | — | — | n.m | ||||||||||||
| INCOME/(LOSS) BEFORE TAXES | 1,618,618 | 161,192 | 1,779,810 | 920,683 | 93.3% | ||||||||||||
| Income Taxes | (155,057) | — | (155,057) | (16,489) | 840.4% | ||||||||||||
| NET INCOME/(LOSS) | 1,463,561 | 161,192 | 1,624,753 | 904,194 | 79.7% | ||||||||||||
| Attributable to: | |||||||||||||||||
| Owners of the parent company | 1,459,984 | 161,192 | 1,621,176 | 903,721 | 79.4% | ||||||||||||
| Non-controlling interest | 3,577 | — | 3,577 | 473 | 656.2% | ||||||||||||
| NET INCOME/(LOSS) attributable to the owners of the parent company | 1,459,984 | 161,192 | 1,621,176 | 903,721 | 79.4% | ||||||||||||
| Net Margin attributable to the owners of the parent company | 10.1% | 1.1pp | 11.2% | 6.9% | 4.3pp | ||||||||||||
| Effective Tax Rate | (9.6%) | 0.9pp | (8.7%) | (1.8%) | (6.9pp) | ||||||||||||
Financial Metrics for the twelve-month period ended December | |||||||||||||||||
| For the twelve month period ended December 31, | |||||||||||||||||
| 2025 | 2024 | Change (%) | |||||||||||||||
Diluted Earnings per ADS (US$) | 4.95 | 3.23 | 53.3% | ||||||||||||||
Diluted Earnings per Share (US$) | 0.002477 | 0.001616 | 53.3% | ||||||||||||||
| Adjusted EBITDAR (in thousands of US Dollars) | 4,091,049 | 3,107,878 | 31.6% | ||||||||||||||
| Adjusted EBITDAR Margin | 28.2% | 23.8% | 4.4pp | ||||||||||||||
Note: Adjustments include adjustments to add back the effect of other gains and losses, variable Aircraft Rental expenses (non-cash P&L effect), employee compensation associated with the Corporate Incentive Plan, foreign exchange gains and results of indexation units.
11
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Balance Sheet (in thousands of US Dollars)
As of December 31, | As of December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | 2,150,113 | 1,957,788 | ||||||
| Other financial assets | 70,544 | 67,295 | ||||||
| Other non-financial assets | 236,071 | 203,661 | ||||||
| Trade and other accounts receivable | 1,381,869 | 1,163,707 | ||||||
| Accounts receivable from related entities | 7 | 25 | ||||||
| Inventories | 458,566 | 438,530 | ||||||
| Current tax assets | 75,704 | 40,275 | ||||||
| Total current assets other than non-current assets (or disposal groups) classified as held for sale | 4,372,874 | 3,871,281 | ||||||
| Non-current assets (or disposal groups) classified as held for sale | 10,338 | 29,138 | ||||||
| Total current assets | 4,383,212 | 3,900,419 | ||||||
| Other financial assets | 52,139 | 53,772 | ||||||
| Other non-financial assets | 93,517 | 89,416 | ||||||
| Accounts receivable | 13,950 | 12,342 | ||||||
| Intangible assets other than goodwill | 1,129,961 | 1,000,170 | ||||||
| Property, plant and equipment | 11,947,014 | 10,186,697 | ||||||
| Deferred tax assets | 21,098 | 10,549 | ||||||
| Total non-current assets | 13,257,679 | 11,352,946 | ||||||
| Total assets | 17,640,891 | 15,253,365 | ||||||
| Liabilities and shareholders' equity | ||||||||
| Other financial liabilities | 745,303 | 635,213 | ||||||
| Trade and other accounts payables | 2,684,846 | 2,133,572 | ||||||
| Accounts payable to related entities | 7,707 | 12,875 | ||||||
| Other provisions | 8,413 | 14,221 | ||||||
| Current tax liabilities | 31,950 | 6,281 | ||||||
| Other non-financial liabilities | 3,816,175 | 3,488,680 | ||||||
| Total current liabilities | 7,294,394 | 6,290,842 | ||||||
| Other financial liabilities | 7,343,223 | 6,515,238 | ||||||
| Accounts payable | 471,208 | 491,762 | ||||||
| Other provisions | 674,611 | 623,846 | ||||||
| Deferred tax liabilities | 338,674 | 312,677 | ||||||
| Employee benefits | 181,579 | 167,427 | ||||||
| Other non-financial liabilities | — | 140,244 | ||||||
| Total non-current liabilities | 9,009,295 | 8,251,194 | ||||||
| Total liabilities | 16,303,689 | 14,542,036 | ||||||
| Share capital | 4,418,110 | 5,003,534 | ||||||
| Retained earnings | 2,170,280 | 1,148,291 | ||||||
| Treasury Shares | — | — | ||||||
| Other equity | 39 | 39 | ||||||
| Other reserves | (5,242,835) | (5,428,597) | ||||||
| Parent’s ownership interest | 1,345,594 | 723,267 | ||||||
| Non-controlling interest | (8,392) | (11,938) | ||||||
| Total equity | 1,337,202 | 711,329 | ||||||
| Total liabilities and equity | 17,640,891 | 15,253,365 | ||||||
12
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Statement of Cash Flow – Direct Method (in thousands of US Dollars)
As of December 31, | As of December 31, | |||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Cash collection from operating activities | ||||||||
| Proceeds from sales of goods and services | 15,518,592 | 14,037,848 | ||||||
| Other cash receipts from operating activities | 192,905 | 212,750 | ||||||
| Payments for operating activities | ||||||||
| Payments to suppliers for the supply goods and services | (9,564,720) | (9,458,249) | ||||||
| Payments to and on behalf of employees | (1,830,249) | (1,419,825) | ||||||
| Other payments for operating activities | (386,561) | (344,911) | ||||||
| Income taxes (paid) | (144,987) | (43,439) | ||||||
| Other cash inflows (outflows) | (47,884) | 122,153 | ||||||
| Net cash (outflow) inflow from operating activities | 3,737,096 | 3,106,327 | ||||||
| Cash flows from investing activities | ||||||||
| Amounts raised from sale of property, plant and equipment | 102,031 | 97,303 | ||||||
| Purchases of property, plant and equipment | (1,775,818) | (1,325,463) | ||||||
| Purchases of intangible assets | (104,483) | (94,412) | ||||||
| Interest received | 136,429 | 118,437 | ||||||
| Other cash inflows (outflows) | 62,018 | 34,469 | ||||||
| Net cash (outflow) inflow from investing activities | (1,579,823) | (1,169,666) | ||||||
| Cash flows inflow (out flow) from financing activities | ||||||||
| Payments to acquire or redeem the entity's shares | (584,837) | — | ||||||
| Amounts raised from long-term loans | 1,349,140 | 1,750,060 | ||||||
| Loans repayments | (1,023,072) | (2,004,542) | ||||||
| Payments of lease liabilities | (463,358) | (344,038) | ||||||
| Dividends paid | (605,181) | (174,838) | ||||||
| Interest paid | (600,740) | (717,634) | ||||||
| Other cash (outflows) inflows | (91,525) | (73,869) | ||||||
| Net cash inflow (outflow) from financing activities | (2,019,573) | (1,564,861) | ||||||
| Net (decrease) increase in cash and cash equivalents before effect of exchanges rate change | 137,700 | 371,800 | ||||||
| Effects of variation in the exchange rate on cash and cash equivalents | 54,625 | (128,773) | ||||||
| Net (decrease) increase in cash and cash equivalents | 192,325 | 243,027 | ||||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 1,957,788 | 1,714,761 | ||||||
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | 2,150,113 | 1,957,788 | ||||||
13
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Adjusted Free Cash Flow (in thousands of US Dollars)
| Adjusted Free Cash Flow | For the three month period ended December 31, | For the twelve month period ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Adjusted EBITDAR | 1,129,201 | 865,915 | 4,091,049 | 3,107,878 | |||||||||||||
| Changes in working capital | 206,377 | 197,180 | (23,961) | 292,481 | |||||||||||||
| Cash taxes | (62,689) | (7,659) | (144,987) | (43,439) | |||||||||||||
| Operating lease payments | (228,528) | (177,133) | (774,520) | (636,378) | |||||||||||||
| Interest Income | 42,794 | 30,665 | 136,429 | 118,437 | |||||||||||||
| Adj. Operating cash flow | 1,087,155 | 908,968 | 3,284,010 | 2,838,979 | |||||||||||||
| Maintenance CapEx | (235,180) | (217,243) | (781,913) | (618,251) | |||||||||||||
| CapEx for growth & Fleet CapEx Net of Financing | (241,763) | (326,964) | (672,355) | (921,584) | |||||||||||||
| Adj. Investment cash flow * | (476,943) | (544,207) | (1,454,268) | (1,539,835) | |||||||||||||
| Adj. Unlevered FCF | 610,212 | 364,761 | 1,829,742 | 1,299,144 | |||||||||||||
| Interest on financial debt | (65,992) | (132,880) | (212,499) | (360,209) | |||||||||||||
| Interest on finance leases | (20,182) | (15,928) | (77,079) | (69,249) | |||||||||||||
| Adj. Levered FCF | 524,038 | 215,953 | 1,540,164 | 869,686 | |||||||||||||
| Finance lease amortization | (136,083) | (30,424) | (323,072) | (198,774) | |||||||||||||
| Non-Fleet Financial debt net amortization | — | (138,686) | 90,120 | (154,708) | |||||||||||||
| Dividends paid | (311,785) | — | (605,181) | (174,549) | |||||||||||||
| Other (Incl. Asset Sale, Fx and others) | 57,922 | (99,260) | 75,131 | (98,339) | |||||||||||||
| Share repurchases | — | — | (584,837) | — | |||||||||||||
| Adj. Financing & Others cash flow | (476,120) | (417,178) | (1,637,417) | (1,056,117) | |||||||||||||
| Change in cash | 134,092 | (52,417) | 192,325 | 243,027 | |||||||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 2,016,021 | 2,010,205 | 1,957,788 | 1,714,761 | |||||||||||||
| CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 2,150,113 | 1,957,788 | 2,150,113 | 1,957,788 | |||||||||||||
| Fleet Cash Cost | (373,139) | (214,848) | (1,132,053) | (877,771) | |||||||||||||
*Adjusted Investment cash flow is equivalent to total CapEx net of financing. A reconciliation table can be found on page 19.
Notes:
1) Adjusted EBITDAR includes adjustments to add back the effect of other gains and losses, variable Aircraft Rental expenses (non-cash P&L effect), employee compensation associated with the Corporate Incentive Plan, foreign exchange gains and results of indexation units.
2) Operating lease payments include variable Aircraft Rentals (Pay by the Hour “PBH”) and Operational Leases under IFRS 16 including amortization and interest (both fleet and non-fleet).
3) Maintenance CapEx primarily includes engine shop visits, aircraft c-checks and restocking of parts for existing operation, as well as CapEx associated with fleet projects that do not contribute additional capacity to the group's operations or add new features to the existing offered product.
4) Growth & Fleet CapEx (net of financing) includes CapEx associated with additional spare parts and engines, engine shop visits, aircraft c-checks and restocking of parts for additional operation, PDPs, fleet projects that contribute additional capacity or new features to the existing offered product and certain other strategic projects that add value, and fleet arrivals net of their financing.
5) Fleet Cash cost includes Finance lease amortization, interest on finance leases and operating lease payments (Excluding Non-fleet lease liabilities). Calculation can be found on page 18.
14
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Balance Sheet Indicators (in thousands of US Dollars)
As of December 31, | As of December 31, | |||||||
| 2025 | 2024 | |||||||
| Total Assets | 17,640,891 | 15,253,365 | ||||||
| Total Liabilities | 16,303,689 | 14,542,036 | ||||||
| Total Equity* | 1,337,202 | 711,329 | ||||||
| Total Liabilities and Shareholders equity | 17,640,891 | 15,253,365 | ||||||
| Fleet lease liabilities | 3,574,031 | 3,145,675 | ||||||
| Fleet financial debt | 1,642,342 | 1,188,771 | ||||||
| Total Fleet Debt | 5,216,373 | 4,334,446 | ||||||
| Total Non-Fleet Debt (includes non-fleet lease liabilities and non-fleet financial debt) | 2,872,153 | 2,816,005 | ||||||
| Total Gross Debt | 8,088,526 | 7,150,451 | ||||||
| Cash, cash equivalents and liquid investments | (2,150,113) | (1,957,788) | ||||||
| Total Net Debt | 5,938,413 | 5,192,663 | ||||||
*Includes non-controlling interest.
LATAM Airlines Group S.A.
Main Financial Ratios
| As of December 31, | As of December 31, | |||||||
| 2025 | 2024 | |||||||
| Cash, cash equivalents and liquid investments | 2,150,113 | 1,957,788 | ||||||
| Revolving Credit Facilities (RCF) | 1,575,000 | 1,575,000 | ||||||
| Liquidity (US$ thousands) | 3,725,113 | 3,532,788 | ||||||
| Liquidity as % of LTM revenues | 25.7% | 27.1% | ||||||
| Gross Debt (US$ thousands) | 8,088,526 | 7,150,451 | ||||||
| Gross Debt / Adjusted EBITDAR (LTM) | 2.0x | 2.3x | ||||||
| Net Debt (US$ thousands) | 5,938,413 | 5,192,663 | ||||||
| Net Debt / Adjusted EBITDAR (LTM) | 1.5x | 1.7x | ||||||
Note: Adjusted EBITDAR (LTM) refers to Adjusted EBITDAR (Last Twelve Months) (US$ thousands). For the ratios as of December 31, 2025, and December 31, 2024, it is calculated using the last twelve months as of December 31, 2025 (US$4,091,049) and the full twelve months in 2024 (US$3,107,878).
15
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Fleet
| As of December 31, 2025 | |||||||||||
| Aircraft on Property, Plant & Equipment | Aircraft on Right of Use under IFRS16 | Total | |||||||||
| Passenger Aircraft | |||||||||||
| Boeing 767-300ER | 9 | — | 9 | ||||||||
| Boeing 777-300ER | 10 | — | 10 | ||||||||
| Boeing 787-8 | 6 | 4 | 10 | ||||||||
| Boeing 787-9 | 2 | 26 | 28 | ||||||||
| Airbus A319-100 | 11 | 28 | 39 | ||||||||
| Airbus A320-200 | 86 | 49 | 135 | ||||||||
| Airbus A320-Neo | 7 | 44 | 51 | ||||||||
| Airbus A321-200 | 30 | 19 | 49 | ||||||||
| Airbus A321-Neo | 3 | 14 | 17 | ||||||||
| TOTAL | 164 | 184 | 348 | ||||||||
| Short-term leases | |||||||||||
| Airbus A330-200 | — | 3 | 3 | ||||||||
| TOTAL | — | 3 | 3 | ||||||||
| Cargo Aircraft | |||||||||||
| Boeing 767-300F | 19 | 1 | 20 | ||||||||
| TOTAL | 19 | 1 | 20 | ||||||||
| TOTAL FLEET | 183 | 188 | 371 | ||||||||
Note: This table includes 1 Boeing 767-300F that was reclassified from Property, Plant and Equipment to Assets Held for Sale.
16
4Q 2025 Results | | ||||
LATAM Airlines Group S.A.
Reconciliation of Reported Amounts to Non-GAAP Items (in thousands of US Dollars)
LATAM Airlines Group S.A. ("LATAM" or "the Company") prepares its financial statements under “International Financial Reporting Standards” (“IFRS”) as issued by the IASB, however, for ease of presentation and comparison, the Income Statement in this report is presented in an Adapted by Nature Format. On some occasions, adjustments to these Income Statement figures are made for Special Items. These adjustments to include or exclude special items allows management an additional tool to understand and analyze its core operating performance and allow for more meaningful comparison in the industry. Therefore, LATAM believes these non-GAAP financial measures, derived from the consolidated financial statements but not presented in accordance with IFRS, may provide useful information to investors and others. In this table, you can find a reconciliation of the IFRS and the Adapted by Nature Format as LATAM reports its Income Statement in this earnings release for ease of comparison and further disclosure, as well as the adjustments made for Special Items.
These non-GAAP items may not be comparable to similarly titled non-GAAP items of other companies and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show these reconciliations:
For the three month period ended December 31, | For the twelve month period ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||
| Cost of sales | (2,717,433) | (2,417,703) | 12.4% | (10,104,884) | (9,565,899) | 5.6% | |||||||||||||||||
| Distribution costs | (159,186) | (144,327) | 10.3% | (578,971) | (606,207) | (4.5%) | |||||||||||||||||
| Administrative expenses | (246,835) | (244,879) | 0.8% | (870,484) | (824,493) | 5.6% | |||||||||||||||||
| Other expenses | (151,300) | (153,269) | (1.3%) | (603,912) | (459,842) | 31.3% | |||||||||||||||||
| Other gains/(losses) | (17,780) | 15,494 | (214.8%) | (1,201) | (36,223) | (96.7%) | |||||||||||||||||
| TOTAL OPERATING EXPENSES | (3,292,534) | (2,944,684) | 11.8% | (12,159,452) | (11,492,664) | 5.8% | |||||||||||||||||
| Other gains/(losses) | 17,780 | (15,494) | (214.8%) | 1,201 | 36,223 | (96.7%) | |||||||||||||||||
| Adjustments for Corporate Incentive Plan | (13,160) | 27,319 | (148.2%) | 18,212 | 78,787 | (76.9%) | |||||||||||||||||
| Aircraft rentals expense | — | 960 | (100.0%) | — | 4,164 | (100.0%) | |||||||||||||||||
| ADJUSTED TOTAL OPERATING EXPENSES | (3,287,914) | (2,931,899) | 12.1% | (12,140,039) | (11,373,490) | 6.7% | |||||||||||||||||
| TOTAL OPERATING EXPENSES | (3,292,534) | (2,944,684) | 11.8% | (12,159,452) | (11,492,664) | 5.8% | |||||||||||||||||
| Aircraft fuel expenses | 968,495 | 930,093 | 4.1% | 3,804,821 | 3,970,077 | (4.2%) | |||||||||||||||||
| Operating Expenses (Ex-Fuel) | (2,324,039) | (2,014,591) | 15.4% | (8,354,631) | (7,522,587) | 11.1% | |||||||||||||||||
| ASKs (millions) | 44,175 | 41,022 | 7.7% | 170,812 | 157,931 | 8.2% | |||||||||||||||||
| CASK (Ex-Fuel) | (5.3) | (4.9) | 7.1% | (4.9) | (4.8) | 2.7% | |||||||||||||||||
| ADJUSTED TOTAL OPERATING EXPENSES | (3,287,914) | (2,931,899) | 12.1% | (12,140,039) | (11,373,490) | 6.7% | |||||||||||||||||
| Aircraft fuel expenses | 968,495 | 930,093 | 4.1% | 3,804,821 | 3,970,077 | (4.2%) | |||||||||||||||||
| Adjusted Operating Expenses (Ex-Fuel) | (2,319,419) | (2,001,806) | 15.9% | (8,335,218) | (7,403,413) | 12.6% | |||||||||||||||||
| ASKs (millions) | 44,175 | 41,022 | 7.7% | 170,812 | 157,931 | 8.2% | |||||||||||||||||
| ADJUSTED CASK Ex-Fuel (US$ cents) | (5.3) | (4.9) | 7.6% | (4.9) | (4.7) | 4.1% | |||||||||||||||||
| Operating lease payments | (228,528) | (177,133) | 29.0% | (774,520) | (636,378) | 21.7% | |||||||||||||||||
| Interest on finance leases | (20,182) | (15,928) | 26.7% | (77,079) | (69,249) | 11.3% | |||||||||||||||||
| Finance lease amortization | (136,083) | (30,424) | 347.3% | (323,072) | (198,774) | 62.5% | |||||||||||||||||
| Non-fleet lease liabilities | 11,654 | 8,637 | 34.9% | 42,618 | 26,630 | 60.0% | |||||||||||||||||
| FLEET CASH COSTS | (373,139) | (214,848) | 73.7% | (1,132,053) | (877,771) | 29.0% | |||||||||||||||||
| NET INCOME/(LOSS) | 484,224 | 269,690 | 79.5% | 1,463,561 | 977,445 | 49.7% | |||||||||||||||||
| Income Taxes | 65,918 | 18,410 | 258.1% | 155,057 | 16,489 | 840.4% | |||||||||||||||||
| Interest Expense | 157,452 | 306,388 | (48.6%) | 721,416 | 881,950 | (18.2%) | |||||||||||||||||
| Interest Income | (45,918) | (33,711) | 36.2% | (146,275) | (142,411) | 2.7% | |||||||||||||||||
| Depreciation and Amortization | 468,068 | 402,620 | 16.3% | 1,736,098 | 1,447,656 | 19.9% | |||||||||||||||||
| EBITDA | 1,129,744 | 963,397 | 17.3% | 3,929,857 | 3,181,129 | 23.5% | |||||||||||||||||
| Aircraft rentals expense | — | 960 | (100.0%) | — | 4,164 | (100.0%) | |||||||||||||||||
EBITDAR | 1,129,744 | 964,357 | 17.1% | 3,929,857 | 3,185,293 | 23.4% | |||||||||||||||||
| Other gains/(losses) | 17,780 | (15,494) | (214.8%) | 1,201 | 36,223 | (96.7%) | |||||||||||||||||
| Foreign exchange gains/(losses) | (5,110) | (105,449) | n.m | 141,485 | (172,917) | n.m | |||||||||||||||||
| Results of indexation units | (52) | (4,831) | (98.9%) | 294 | (19,508) | (101.5%) | |||||||||||||||||
| Adjustments for Corporate Incentive Plan | (13,160) | 27,319 | (148.2%) | 18,212 | 78,787 | (76.9%) | |||||||||||||||||
| ADJUSTED EBITDAR | 1,129,202 | 865,902 | 30.4% | 4,091,049 | 3,107,878 | 31.6% | |||||||||||||||||
17
4Q 2025 Results | | ||||
For the three month period ended December 31, | For the twelve month period ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||
| Purchases of property, plant and equipment | (497,783) | (545,456) | (8.7)% | (1,775,818) | (1,325,463) | 34.0% | |||||||||||||||||
| Purchases of intangible assets | (28,699) | (34,342) | (16.4)% | (104,483) | (94,412) | 10.7% | |||||||||||||||||
| Reconciled by: | |||||||||||||||||||||||
| Leased Maintenance Capitalizations | (64,461) | (63,409) | 1.7% | (185,005) | (246,429) | (24.9)% | |||||||||||||||||
| Capital raised for fleet related financing | 114,000 | 99,000 | n.m | 559,020 | 99,000 | n.m | |||||||||||||||||
| Financing of Pre delivery payments | — | — | n.m | — | — | n.m | |||||||||||||||||
| Recoveries of credits and Guarantee deposit received from assets* | — | — | n.m | 52,018 | 27,469 | 89.4% | |||||||||||||||||
| Insurance recovery | — | — | n.m | — | — | n.m | |||||||||||||||||
| TOTAL CAPEX NET OF FINANCING | (476,943) | (544,207) | (12.4%) | (1,454,268) | (1,539,835) | (5.6%) | |||||||||||||||||
Net income attributable to owners of the parent company | 484,289 | 271,938 | 78.1% | 1,459,984 | 976,972 | 49.4% | |||||||||||||||||
| Weighted average number of shares, diluted | 574,219,895 | 604,441,789 | (5.0%) | 589,306,002 | 604,441,789 | (2.5%) | |||||||||||||||||
| DILUTED EARNINGS PER SHARE (US$) | 0.00084 | 0.00045 | 87.5% | 0.00248 | 0.00162 | 53.3% | |||||||||||||||||
| DILUTED EARNINGS PER ADS (US$) | 1.69 | 0.90 | 87.5% | 4.95 | 3.23 | 53.3% | |||||||||||||||||
*For the twelve month period ended December 31, 2024, excludes US$7 million related to advanced payments arising from the sale of assets in the period. For the three-month period and twelve month period ended December 31, 2025, excludes US$10 million related to the same purposes.
18
FAQ
How did Airlines Group S.A. (LTM) perform financially in 2025?
Airlines Group S.A. posted strong 2025 results, with total revenue of US$14.5 billion and net income attributable to owners of US$1.46 billion. Adjusted operating margin reached 16.2% and adjusted EBITDAR margin 28.2%, both significantly higher than 2024.
What were Airlines Group S.A.’s key fourth-quarter 2025 results?
In Q4 2025, Airlines Group S.A. generated US$3.95 billion in operating revenue, up 16.3% year over year. Net income attributable to owners was US$484 million, up 78.1%. Adjusted EBITDAR reached US$1.13 billion, with a margin of 28.6%, reflecting strong operational performance.
How strong is Airlines Group S.A.’s balance sheet and liquidity?
At December 31, 2025, Airlines Group S.A. reported total net debt of US$5.94 billion and adjusted net leverage of 1.5x adjusted EBITDAR. Liquidity, including cash and undrawn revolving credit facilities, totaled US$3.73 billion, equivalent to 25.7% of last-twelve-month revenues.
What cash returns did Airlines Group S.A. provide to shareholders in 2025?
In 2025, Airlines Group S.A. used strong cash generation to repurchase US$585 million of shares and distribute US$693 million in dividends. This included US$293 million in statutory dividends and a further US$400 million interim dividend approved in December.
How did Airlines Group S.A.’s passenger and cargo businesses perform in 2025?
The group carried 87.4 million passengers in 2025 as capacity grew 8.2%, with passenger revenues and unit yields rising. Cargo affiliates transported over 1 million tons; however, Q4 2025 cargo revenue fell 9.6% year over year as market conditions normalized.
What guidance has Airlines Group S.A. given for 2026?
For 2026, Airlines Group S.A. guides total ASK growth of 8–10% versus 2025 and revenues of US$15.5–16.0 billion. It targets adjusted operating income of US$2.35–2.65 billion, adjusted EBITDA of US$4.20–4.60 billion, and adjusted EBITDA margin of 27–29%.
Latam Airlines
NYSE:LTM
LTM Rankings
LTM Latest News
Jun 18, 2022
U.S. Court approves LATAM's Reorganization Plan