LATAM Raises 2026 Earnings Forecast as Strong Business Model Weathers Oil Price Shock
SANTIAGO, Chile – LATAM Airlines has raised its full-year 2026 earnings forecast after improving fuel price expectations, saying its diversified business model has remained resilient despite the sharp rise in oil prices triggered by the recent U.S.-Israeli conflict with Iran.
The South American airline now expects its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to reach between $4.1 billion and $4.4 billion this year. The revised guidance is higher than the $3.8 billion to $4.2 billion forecast issued in May.
Fuel is one of the largest operating expenses for airlines, and the conflict in the Middle East sparked concerns over global oil supplies, driving up jet fuel prices. Despite the challenging environment, LATAM said its strong network, disciplined cost management, and sustained demand for air travel have enabled the airline to navigate the market volatility.
The improved outlook highlights the carrier’s confidence in maintaining solid financial performance through the remainder of 2026, even as geopolitical tensions continue to create uncertainty for the global aviation industry.
LATAM has continued to benefit from robust passenger demand across South America and a steady recovery in international travel, reinforcing its position as one of the region’s leading airline groups.
The revised earnings guidance signals growing confidence that easing fuel price expectations and resilient travel demand will support stronger profitability in the months ahead.
