By Brazil Stock Guide – LATAM Airlines Group (LTM) raised its profitability ambitions for 2026 as the carrier prepares for another year of strong network expansion across South American domestic markets and long-haul routes. The airline expects passenger capacity to rise 8% to 10% in ASKs and projects an operating margin of 15% to 17%, signaling sustained post-restructuring momentum. LATAM also forecasts EBITDA of $4.2 billion to $4.6 billion, above the 2025 guidance range of $4.0 billion to $4.1 billion.
Capacity Expansion
The group anticipates domestic growth of 6% to 8% in Brazil and 5% to 7% across Chile, Colombia, Ecuador and Peru. International operations — LATAM’s strongest post-pandemic profit engine — are projected to climb 11% to 13% next year. The airline also expects an adjusted passenger CASK ex-fuel of 4.3 to 4.5 cents, reflecting ongoing efforts to contain costs amid competitive pressure across the region.
The projections reflect “the result of LATAM’s unique business model, which allows us to aspire to solid and sustainable financial results over time,” CEO Roberto Alvo said. He noted that the company will continue prioritizing cost control, operational discipline and investments in technologies aimed at improving customer experience and advancing more sustainable operations.
Cash and Leverage Targets
LATAM expects to generate over $1.7 billion in levered free cash flow in 2026, supported by stronger earnings and disciplined capex. Adjusted net leverage is projected to end the year at or below 1.4x, while liquidity should surpass $5 billion, reinforcing what the group describes as a resilient capital structure with long-term financial flexibility.