Resilient demand for premium seats and from loyalty programme members kept LATAM in the black.
LATAM Airlines Group was able to pass to customers much of the increase in fuel prices in the second quarter thanks to strong travel demand, especially for premium seats and from member of its loyalty programme.
The company reported an adjusted operating profit of $227 million for an adjusted operating margin of 5.4% during the three months ending in June. Its revenue increased 28% year on year to $4.2 billion, driven by an 18% year-on-year increase in revenue per available seat kilometre, allowing LATAM to recapture much of the additional $700 million fuel expense it paid in the period. LATAM’s second-quarter expenses jumped 39% year on year to $4.0 billion.
“The combination of effective execution, commercial flexibility and the resilience of LATAM’s diversified business model allowed the group to increase unit revenues this quarter [and] successfully mitigate a substantial portion of that [fuel] impact,” said Ricardo Dourado, the chief financial officer of LATAM, during an earnings call on 5 August.
Premium-seat sales and demand from loyalty programme members showed “greater resilience” than overall demand in the second quarter, he adds.
LATAM is investing in new business-class suites and premium-economy seats for its widebody Boeing 787s. Installations began in 2025 and continue across the fleet. It is also expanding the number of premium-economy seats on its narrowbody fleet of Airbus A320-family aircraft and plans to introduce the seats on Embraer 195-E2s scheduled to enter service in November.
LATAM initially plans to fly E195-E2s to four new destinations and on eight new routes in Brazil. The aircraft will allow it to expand and tailor capacity on existing routes to better match demand at various times of day, chief executive Roberto Alvo says.
Looking ahead, LATAM reinstated its guidance despite what Alvo says remains a “highly dynamic” market. The company expects to grow capacity, measured in available seat kilometres, 8-9% in 2026 and forecasts a 2026 adjusted operating margin of 12-13%.
LATAM is scheduled to take delivery of 15 A320neo-family aircraft, one 787-9 and 12 E195-E2s in the second half of 2026, its latest fleet plan shows. It forecasts adding 27 aircraft to its fleet in 2026, bringing its fleet to 410 aircraft at year-end.
LATAM can retire older Airbus A319s if the demand environment weakens, Alvo says.
The post LATAM confident in outlook, growth after Q2 profit first appeared on FlightGlobal.
