LATAM Boeing 777 300 scaled
LATAM Airlines Group has reported its financial and operational results for the second quarter of 2025, a period in which it achieved a net income of US$242 million. This figure represents a 66% increase compared to the same period last year, solidifying a positive trend with an accumulated income of US$597 million in the first half of the year.
The financial performance was driven by a general upswing in activity. Total quarterly revenues reached US$3.279 billion, up 8.2% from the second quarter of 2024. This growth is broken down into:
- Passenger Revenues: US$2.824 billion, an 8.5% increase.
- Cargo Revenues: US$419 million, a 10.2% increase.
The adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) reached US$850 million, 37.4% higher than the previous year. With these results, the adjusted operating margin stood at 12.9%, the highest the company has ever recorded for a second quarter.
From an operational standpoint, LATAM transported 20.6 million passengers between April and June, 7.6% more than in the same period of 2024. The consolidated capacity, measured in available seat-kilometers (ASK), increased by 8.3%. Demand kept pace with this increase, resulting in a consolidated load factor of 83.5%, an improvement of 1.2 percentage points.
Due to what the company describes as an improved market scenario, LATAM has adjusted its 2025 guidance upwards. The airline now anticipates capacity growth in its Brazilian domestic market of between 9.5% and 10.5% (up from 7%-9% previously) and an adjusted operating margin of between 14% and 15% for the entire group.
In strategy and connectivity, a key development was the inclusion of Argentina in the Joint Business Agreement (JBA) that LATAM maintains with Delta Air Lines. This move expands the cooperation between both airlines on the continent. Additionally, LATAM Brazil launched six new domestic routes and expanded operations to and from Argentine airports. The group’s network currently covers 153 destinations in 27 countries.
The group’s financial position remains robust. At the end of the quarter, total liquidity was US$3.6 billion, with an adjusted net leverage of 1.6x. This was after distributing US800 million refinancing of non-fleet-related debt, achieving an interest cost reduction that will generate annual savings of US$33 million.
During the quarter, 12 aircraft were received, bringing the total fleet to 360 units. In parallel, the company is advancing its customer experience improvements with the rollout of new Premium Business suites on its wide-body fleet and announced the progressive introduction of Wi-Fi connectivity starting in 2026.
On the sustainability front, the integration of Airbus‘ Aircraft Performance Monitoring (APM) software across the entire fleet was completed. According to the company, this tool will enable annual fuel savings equivalent to avoiding the emission of 8,000 tons of CO?.
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