LATAM Airlines Stock Price Rises 7.5% Since Q3 Earnings Release

Core Insights - LATAM Airlines Group (LTM) shares increased by 7.5% following the release of its third-quarter 2025 earnings on November 14, 2025, primarily due to raised full-year guidance [1] - The company now expects 2025 revenues to be in the range of $14.4-$14.5 billion, up from the previous estimate of $14-$14.2 billion [1] - Adjusted operating income for 2025 is projected to be between $2.30 and $2.40 billion, an increase from the prior estimate of $2-$2.15 billion [2] Financial Performance - LATAM Airlines reported third-quarter 2025 earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.26 and reflecting a 30% year-over-year improvement [5] - Total revenues for the quarter reached $3.85 billion, surpassing the Zacks Consensus Estimate of $3.61 billion and growing 17.3% year over year, driven by an 18.5% increase in passenger revenues and a 6.3% increase in cargo revenues [5] - Adjusted operating expenses rose by 11.7% year over year to $3.15 billion, influenced by a 9.3% increase in passenger operations, although this was partially offset by an 11.4% reduction in average jet fuel prices [6] Capacity and Traffic - LATAM's consolidated capacity, measured in available seat-kilometers (ASKs), grew by 9.3% year over year, with a 10% increase in revenue passenger-kilometers (RPK) [7] - The load factor improved by 0.5 percentage points to 85.4%, indicating that traffic growth outpaced capacity expansion [7] - The airline transported 22.9 million passengers in the third quarter, marking an 8.3% increase year over year [7] Future Guidance - For 2025, total ASK growth is expected to be in the range of 8.0%-8.5%, slightly down from the previous estimate of 8.5%-9.5% [9] - LATAM Airlines anticipates maintaining liquidity above $4 billion for the current year [9] - The company plans to expand its fleet to 371 aircraft by the end of 2025, with further growth projected to 410 aircraft in 2026 and 422 aircraft in 2027 [9]