The LATAM Group reported net profit of $441 million in the third quarter of 2026, up 16.3% from the same period last year. The result came despite higher fuel costs, which the company said had a $520 million impact on its business. Average jet fuel prices rose 52.1% year over year in the quarter.
Operating revenue reached $4.567 billion, an increase of 18.4%. Adjusted EBITDA was $1.095 billion, while adjusted operating profit totaled $573 million. The adjusted operating margin fell to 12.5%, from 18.1% in the third quarter of 2025.
CEO Jerome Cadier attributed the performance to the appeal of LATAM’s product, customer loyalty and efficient operating costs. He said the group’s restructuring in recent years had helped it maintain a low-cost operation.
LATAM lowered its forecast for growth in Brazil’s domestic market this year. It now expects growth of 7.5% to 8.5%, compared with a previous range of 8% to 9%. Cadier said the midpoint of the forecast had moved from 8.5% to 8%, a reduction of half a percentage point in the company’s planned capacity growth.
For 2026, the group expects revenue of $17.6 billion to $17.8 billion and adjusted EBITDA of $3.9 billion to $4.05 billion. The forecast assumes fuel will cost $180 per barrel in the fourth quarter.
Cadier said LATAM remains optimistic but is monitoring challenges facing Brazil’s airline sector, including fuel prices, currency volatility, tax reform and a proposed end to the 6x1 work schedule. He said currency movements matter because more than 60% of costs for airlines operating in Brazil are denominated in dollars, and warned that high fuel prices could remain a factor in 2027.
The CEO also said companies providing outsourced services to LATAM would need to adjust staffing levels and work schedules if new rules ending the 6x1 arrangement are introduced. He said those changes would need to be implemented without disrupting flights already on sale for the coming months, particularly around Christmas and New Year.
Sources: Folha Mercado.