LATAM Airlines Group Unveils Powerful Expansion Drive With New Aircraft and Record Financial Growth Across 2026

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LATAM Airlines Group enters a new stage of expansion after a strong financial and operational performance in the 2nd quarter of 2026. The airline reported $125 million of net profit, $4.2 billion in revenue, a 5.4% adjusted operating margin, and demonstrated improved resilience against increasing aviation costs.

The latest results highlight the airline’s ability to grow in a challenging market environment, supported by stronger travel demand, increased international operations, higher premium customer activity and the expansion of its loyalty ecosystem.

During the quarter, LATAM carried 21.1 million passengers, while consolidated capacity increased by 8.9% compared with the same period in 2025. The airline also strengthened its future growth plans through a major fleet expansion programme in Brazil, introducing new Embraer E195-E2 aircraft that will help open new routes and improve regional connectivity.

The company’s performance demonstrates a broader transformation strategy focused on building a more efficient, flexible and customer-focused airline network across Latin America.

LATAM Revenue Growth Highlights Strength of Airline’s Business Model

LATAM’s second-quarter results underline the effectiveness of its diversified aviation strategy, which combines passenger services, loyalty operations, cargo activities and flexible commercial solutions.

The airline recorded a 28% increase in revenue compared with the second quarter of 2025, supported by stronger demand across domestic and international markets.

Growth in premium travellers played an important role in improving revenue performance. The airline has continued focusing on attracting higher-value customers while strengthening its relationship with frequent flyers through enhanced loyalty benefits and services.

The LATAM Pass programme became a major contributor to the airline’s commercial success, reaching 56 million members during the quarter. Members generated 67% of passenger revenues, showing the growing importance of customer loyalty in the airline’s financial strategy.

Elite membership also increased by 26% year-on-year, reflecting rising engagement from frequent travellers and business customers.

Higher Fuel Expenses Test LATAM’s Financial Resilience

The airline’s strong performance came despite a significant increase in fuel costs, which created pressure across the global aviation industry.

LATAM reported fuel expenses of US$1.7 billion during the second quarter, representing a 93.1% increase compared with the same period last year. The average fuel price paid by the airline, including hedging protection, increased by 81.3%.

Despite the sharp rise in operating expenses, LATAM maintained profitability by improving efficiency, increasing revenue opportunities and managing its network effectively.

The company achieved an adjusted EBITDA of US$713 million, demonstrating its ability to absorb cost pressures while continuing investment in future growth.

The results reflect LATAM’s focus on maintaining financial discipline while expanding its operations in key markets.

Passenger Growth Supports Wider LATAM Network Expansion

LATAM continued strengthening its route network during the second quarter as passenger demand remained stable across South America.

The airline transported 21.1 million passengers between April and June 2026, supported by increased capacity and stronger travel activity.

International capacity recorded the highest growth, increasing by 11.8% year-on-year as LATAM expanded connections between South America and international destinations.

Domestic markets also delivered positive results:

• LATAM Airlines Brazil increased domestic capacity by 5.7%
• Domestic operations in Chile, Colombia, Ecuador and Peru grew by 5.3%

The group maintained a consolidated load factor of 81.8%, showing that aircraft capacity expansion was supported by healthy passenger demand.

The continued network growth strengthens LATAM’s role in connecting major cities, tourism destinations and emerging regional markets throughout Latin America.

Brazil Aviation Growth Accelerates With Embraer Fleet Expansion

Brazil has become one of the most important markets in LATAM’s long-term expansion strategy.

The airline is preparing to introduce its new Embraer E195-E2 aircraft fleet, which will increase operational flexibility and allow the carrier to expand into more regional markets.

During the second quarter, LATAM Group received nine aircraft, including two wide-body aircraft, bringing its total fleet size to 383 aircraft.

LATAM Airlines Brazil will begin the first phase of Embraer E195-E2 operations between November 2026 and March 2027.

Up to 14 aircraft will be added to the fleet, supporting:

• 42 routes across Brazil
• Four new operating bases
• Increased regional connectivity
• More efficient aircraft deployment

The new bases will include:

• Cabo Frio in Rio de Janeiro
• Ji-Paraná in Rondônia
• Macaé in Rio de Janeiro
• Rondonópolis in Mato Grosso

Following this expansion, LATAM Brazil will serve 67 domestic destinations, compared with 44 destinations in 2019.

The development represents the largest domestic network in LATAM Brazil’s history and highlights the airline’s commitment to improving access to air travel across the country.

New Aircraft Strategy Creates More Regional Travel Opportunities

The Embraer E195-E2 programme is expected to play a major role in LATAM’s future connectivity plans.

The aircraft allows airlines to operate efficiently on routes with medium passenger demand, creating opportunities to connect smaller cities with major aviation centres.

For travellers, the expansion could lead to more direct flight options, reduced travel times and improved access to destinations previously served by limited air connections.

LATAM is already evaluating up to 18 additional destinations for a second expansion phase planned for 2027 as more aircraft become available.

The planned growth reflects the airline’s confidence in Brazil’s aviation market and the increasing demand for regional mobility.

Strong Cash Position Supports LATAM’s Long-Term Investment Plans

Alongside operational expansion, LATAM maintained a strong financial foundation during the quarter.

The airline generated US$473 million in adjusted operating cash flow and ended June 2026 with:

• US$2.7 billion in cash
• US$4.2 billion in total liquidity
• 1.5x adjusted net leverage

The airline’s liquidity position represented 26.2% of revenues over the previous 12 months, giving LATAM greater flexibility to invest in aircraft, technology, customer services and network development.

Shareholders also approved a new share repurchase programme that allows LATAM to buy back up to 5% of outstanding shares over a five-year period, subject to regulatory approval.

LATAM Improves 2026 Forecast as Growth Outlook Strengthens

Following stronger-than-expected performance and improved market visibility, LATAM updated its 2026 guidance.

The airline expects:

The revised forecast reflects expectations of improved fuel conditions later in the year and continued confidence in passenger demand.

LATAM Airlines Group’s latest results show a carrier focused on sustainable expansion rather than short-term growth. Through fleet modernisation, stronger customer loyalty, financial discipline and wider connectivity, the airline is building a stronger position in the South American aviation market.

With Brazil at the centre of its expansion plans and new aircraft supporting regional growth, LATAM is preparing for a new era of travel connectivity across the continent.