LATAM Airlines Group reported today its financial results for the first quarter of this year, continuing a positive trend in both its operational and financial performance. The group ended the period with US$355 million in net income, 38% more than in the first quarter of 2024, and with an adjusted operating margin of 16,8%. In turn, the group transported 21 million engers, 3,6% more than in the same period last year.
Furthermore, it achieved a record first quarter in financial profitability with an adjusted EBITDAR (earnings before interest, taxes, depreciation and amortization and rent costs) of almost US$1 billion, which reflects the group's disciplined and consistent management in a context of healthy demand and customer preference for the LATAM group's value proposition.
During the period, the group had operating revenues of US$3,411 billion, 2,7% more than last year, explained by a 1,6% increase in enger revenues and a 9,8% increase in cargo revenues. Adjusted operating income reached US$573 million, which represents a growth of 23,9% compared to the same quarter last year.
In addition to record profitability, LATAM generated US$585 million in adjusted operating cash flow and US$189 million in net cash during the first quarter, ending the period with a liquidity ratio of 28,4% of last twelve months' revenues and an adjusted net leverage of 1,5x.
In of consolidated capacity, measured in available seat kilometers (ASK), the LATAM group grew 7,3%, driven mainly by a 10,7% increase in international operations. The LATAM group's extensive network continued to attract engers who valued the connectivity offered by the group, which grew from 151 destinations in December 2024 to 153 destinations in 27 countries in March 2025.
These good results and the stable demand environment led LATAM to improve its guidance for 2025. The group expects an updated adjusted operating margin of 13% to 15% (compared to the previous guidance of 12% to 13,5% issued on December 3, 2024) and an adjusted EBITDAR of US$3,4 billion to US$3,75 billion (compared to the US$3,25 billion to US$3,6 billion in the previous guidance).
“LATAM’s operational and financial adaptability means it is well prepared to face the coming months, leveraging the group’s agility to deliver solid results and capture opportunities across the region. Despite a dynamic and challenging macroeconomic environment, the group remains focused on driving profitable growth, elevating the customer travel experience, increasing employee engagement and generating value for LATAM Airlines Group S.A.’s shareholders.”, said Ricardo Bottas, CFO of LATAM Airlines Group.
Furthermore, a share buyback program of up to 1,6% of outstanding shares was approved over the next 18 months. LATAM is executing the program through a pro rata Firm Block Offering (OFB) on the Santiago Stock Exchange for up to 9.670 billion shares (1,6% of total share capital), at a price of $15,02 Chilean pesos per share (approximately US$153 million). The OFB will be in effect until April 30.
LATAM has received upgrades to its credit rating. S&P Global Ratings upgraded LATAM’s rating to “BB” from “BB-“, with a stable outlook. Fitch Ratings also upgraded LATAM’s rating to “BB” from “BB-“, with a positive outlook.
Experience and sustainability
LATAM Group continued to invest in the travel experience of its customers, from improving digital services, modernizing cabins and expanding Wi-Fi connectivity across the fleet. By the end of the quarter, almost 90% of the narrow body fleet had been equipped with Wi-Fi, while 61% of the wide body fleet had improved aircraft interiors to offer a more modern, comfortable and connected travel experience. In addition, in the narrow body fleet, we implemented the Economy cabin on 100% of aircraft for domestic and international flights within South America.
In addition, LATAM Group launched new Business Class cabins for its twin-aisle fleet. This new offering further enhances comfort by introducing suite doors, the first of its kind in South America, for a world-class product with total privacy. Developed with a strong focus on sustainability and greater enger comfort, the new Business offers an enhanced experience for customers, with fully reclining seats with direct aisle access, high-definition screens and modern charging points. Complementing these efforts to elevate the experience, an investment was announced for a new Lounge at Guarulhos Airport (São Paulo) scheduled to open in 2027. In turn, the group launched its new “Signature Check-in” experience, designed to provide a faster, more personalized and seamless service for engers at select airports.
All of this translated into greater customer satisfaction, which qualified the LATAM group with a Net Promoter Score (NPS) of 56 points, the highest score in the group's history and an increase of 5,6 points compared to the first quarter of 2024.
In of fleet, during the quarter the group took delivery of two new A320neo aircraft, which offer greater fuel efficiency and lower emissions. These aircraft are part of the 26 that the group expects to receive by 2025, in line with its fleet plan for growth and modernization.
In of sustainability, LATAM has been recognized as one of the leading companies in this area worldwide, according to S&P Global’s annual sustainability report, the “Sustainability Yearbook”. The report highlights companies that have demonstrated outstanding performance in sustainability management, assessed based on their environmental, social and corporate governance practices.
To be included in the yearbook, companies must score among the top 15% in their industry. In the 2025 edition, S&P Global evaluated more than 7.690 companies, of which 780 are included in the publication. In the industry, only 6 managed to be included in the “Sustainability Yearbook”.
