LATAM Airlines cuts 2026 EBITDA outlook as fuel costs surge
LATAM Airlines lowered its adjusted EBITDA guidance for 2026 to a range of $3.9 billion‑$4.05 billion after a quarter in which fuel prices rose sharply, while it lifted its revenue forecast to $17.6 billion‑$17.8 billion. The third quarter delivered $4.57 billion of revenue, $1.10 billion of adjusted EBITDA and a 16% increase in net profit to $441 million. CEO Roberto Alvo said the carrier is scaling back capacity growth because higher fuel expenses are eroding margins.
Why it matters
The reduced EBITDA outlook signals lower profitability for the year, which may affect investors' valuation of LATAM shares. The higher revenue target shows the airline expects strong demand to offset cost pressures, but the margin squeeze could weigh on cash flow.
Key facts
- 1Third‑quarter revenue was $4.57 billion. investing.com
- 2Adjusted EBITDA for the quarter was $1.10 billion, beating the $1.05 billion consensus. investing.com
- 3Net profit increased 16% to $441 million. investing.com
- 4Average fuel prices rose more than 50% year‑over‑year, costing the company roughly $520 million in the quarter. investing.com
- 5Adjusted EBITDA guidance for 2026 was cut to $3.9 billion‑$4.05 billion from $4.1 billion‑$4.4 billion. investing.com
- 62026 revenue outlook was raised to $17.6 billion‑$17.8 billion from $17.3 billion‑$17.7 billion. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.