LATAM Airlines Reports Strong Q1 2025 Financial Growth With Thirty Eight Percent Rise In Net Income And Over Twenty Million Passengers

Published on April 29, 2025

LATAM Airlines Group has reported its financial results for the first quarter of 2025, continuing its positive trajectory in both operational and financial performance. The group achieved a net income of US$355 million, a 38% increase compared to Q1 2024, alongside an adjusted operating margin of 16.8%. Additionally, LATAM carried nearly 21 million passengers, reflecting a 3.6% year-over-year increase.

The airline group reached a new record for first-quarter financial profitability, with an adjusted EBITDAR approaching US$1 billion, demonstrating disciplined management and strong demand, as customers continue to favor LATAM’s value proposition.

LATAM’s operating revenues stood at US$3.4 billion, a 2.7% rise from the previous year, driven by a 1.6% increase in passenger revenues and a significant 9.8% boost in cargo revenues. The adjusted operating result reached US$573 million, a 23.9% improvement from the same period in 2024.

The group’s liquidity remained robust, with LATAM generating US$585 million in adjusted operating cash flow and US$189 million in net cash during the first quarter. This resulted in a liquidity ratio of 28.4% of the previous 12 months’ revenues, and an adjusted net leverage of 1.5 times.

LATAM also saw a 7.3% increase in consolidated capacity, measured in available seat kilometers (ASK), primarily due to a 10.7% rise in international operations. The group’s expansive network grew from 151 destinations in December 2024 to 153 destinations across 27 countries by March 2025, reinforcing its global connectivity.

In light of these strong results and a stable demand environment, LATAM has adjusted its full-year 2025 guidance. The company now expects an adjusted operating margin of 13.0% to 15.0%, up from the earlier projection of 12.0% to 13.5% in December 2024. Furthermore, LATAM has revised its adjusted EBITDAR forecast to a range of US$3.4 billion to US$3.75 billion, higher than the previous US$3.25 billion to US$3.6 billion estimate.

“LATAM group’s operational and financial adaptability enables the group to be well-prepared to face the coming months, leveraging its agility to deliver strong results and capture opportunities across the region. Despite a dynamic and challenging macroeconomic environment, the group continues to focus on driving profitable growth, elevating the customer experience, strengthening employee engagement, and generating value for LATAM Airlines Group S.A. shareholders,” said Ricardo Bottas, CFO of LATAM Airlines Group.

LATAM Airlines Group announced the approval of a share repurchase program during the quarter, aiming to buy back up to 1.6% of its outstanding shares over the next 18 months. The repurchase will be executed through a pro rata mechanism (OFB, from its Spanish acronym) on the Santiago Stock Exchange, allowing for the acquisition of up to 9.67 billion shares, or 1.6% of the total share capital, at a price of 15.02 Chilean pesos per share (approximately US$153 million). The program is set to remain active until April 30th.

In addition to the repurchase program, LATAM saw improvements in its credit ratings. S&P Global Ratings upgraded the airline to a “BB” rating from “BB-“, maintaining a stable outlook. Likewise, Fitch Ratings raised LATAM’s rating to “BB” from “BB-“, with a positive outlook.

Enhancing Customer Experience and Sustainability Initiatives

LATAM has continued to invest in improving the travel experience for its passengers. This includes advancements in digital services, cabin modernization, and the expansion of Wi-Fi connectivity across its fleet. By the end of the quarter, nearly 90% of the narrow-body fleet had been equipped with Wi-Fi, and 61% of the wide-body fleet had received interior updates to provide a more modern, comfortable, and connected travel experience. Moreover, LATAM introduced premium economy class cabins across its entire narrow-body fleet for both domestic and international flights within South America.

The airline also launched new Business Class cabins for its wide-body fleet. This new offering enhances passenger comfort by incorporating suite doors, the first of their kind in South America, ensuring full privacy for premium passengers. Designed with a focus on sustainability and passenger comfort, the new Business Class features fully flat seats with direct aisle access, high-definition screens, and modern charging ports. LATAM further improved the premium experience by unveiling the “Signature Check-in” service at Santiago International Airport, providing faster, more personalized service for premium travelers.

Additionally, LATAM announced an investment in a new lounge at São Paulo’s Guarulhos Airport, set to open in 2027, to further elevate the premium passenger experience.

These efforts have translated into greater customer satisfaction, as evidenced by a record-high Net Promoter Score (NPS) of 56 points, marking a 5.6-point increase compared to the first quarter of 2024.

Fleet Growth and Sustainability Recognition

During the quarter, LATAM received two new A320neo aircraft, contributing to improved fuel efficiency and reduced emissions. These aircraft are part of a broader plan, with 26 more expected to be delivered in 2025, in line with LATAM’s ongoing fleet modernization and growth strategy.

LATAM was also recognized globally for its sustainability efforts. The airline was named one of the top companies in sustainability in the prestigious S&P Global “Sustainability Yearbook.” This report highlights organizations with exceptional sustainability performance, evaluated based on environmental, social, and corporate governance practices. To qualify for inclusion, companies must score within the top 15% of their industry. In the 2025 edition, S&P Global evaluated over 7,690 companies, with only 780 making it to the publication. LATAM was one of just six companies in its industry to be featured in the “Sustainability Yearbook.”