LATAM Airlines Q2 Profit Drops 48% on Fuel Surge, But Raises Full-Year EBITDA Guidance

summarizeSummary

LATAM Airlines reported a 48% drop in Q2 net income to $125 million as fuel costs surged, but raised its full-year EBITDA guidance to $4.1–$4.4 billion, reflecting confidence in its ability to pass through higher costs.

check_boxKey Events · Earnings and Guidance · LTM

• Q2 Profit Hit by Fuel, But Guidance Raised

  Net income fell 48% YoY to $125 million on a 93% surge in fuel costs, yet full-year adjusted EBITDA guidance was raised to $4.1–$4.4 billion from $3.8–$4.2 billion, implying a stronger second half.

• Revenue Growth Offsets Cost Pressure

  Total revenues rose 28% to $4.2 billion, driven by a 28% increase in passenger revenue and a 22% rise in cargo revenue, as the company successfully passed through higher fuel costs to fares.

• Embraer E2 Network Expansion

  LATAM Airlines Brazil will deploy its new Embraer E195-E2 fleet on 42 domestic routes, including eight new destinations, expanding its domestic network to 67 cities — the largest in its history.

• Share Buyback Program Approved

  Shareholders approved a repurchase program for up to 5% of outstanding shares (approximately 28.7 billion shares) over up to five years, with execution delegated to the board.

auto_awesomeAnalysis · LTM · Energy & Transportation

LATAM's second-quarter net income fell 48% to $125 million as jet fuel costs nearly doubled, squeezing margins. Despite the hit, the company raised its full-year adjusted EBITDA guidance to $4.1–$4.4 billion, signaling confidence that fare increases and a diversified business model can offset fuel headwinds. The results also detail a new Embraer E2 network adding eight domestic destinations in Brazil, and confirm shareholder approval of a 5% buyback program. The guidance raise is the key takeaway — it suggests the worst of the fuel shock may be priced in and that demand remains resilient.