LATAM Airlines Group S.A. (LTM) AI Stock Analysis

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in Chile, Argentina, Peru, Colombia, Ecuador, Brazil, the United States, other Latin American countries, the Caribbean, Europe, and Oceania. Founded in 1929 and headquartered in Santiago, Chile, the company was formerly known as LAN Airlines S.A. before changing its name in June 2012. As of December 31, 2024, the airline operated an aircraft fleet of 371 and offered passenger transport services to 160 destinations across 27 countries.

Between FY2021 and FY2025, revenue expanded from $4.88B to $14.27B, supported by a 5-year revenue CAGR of 29.5%. Operating margin improved from -70.1% in FY2021 to 16.4% in FY2025, while gross margin expanded from -1.6% to 29.2%. Net income shifted from -$4.65B in FY2021 to $1.46B in FY2025, resulting in a net margin of 10.2%. For the trailing twelve months, revenue reached $15.88B with an operating margin of 5.3%. In the latest quarter ended June 30, 2026, quarterly revenue grew 27.2% year-over-year, though quarterly earnings fell 46.2%.

As of June 30, 2026, LATAM Airlines held $2.70B in cash and short-term investments against $9.03B in total debt, leading to net debt of $6.33B. The company recorded shareholders' equity of $2.00B, a debt-to-equity ratio of 4.51, and a current ratio of 0.67. In FY2025, operating cash flow reached $3.26B and free cash flow was $1.49B. Capital allocation during FY2025 included $1.77B in capital expenditures, $584.8M in share buybacks, and $605.2M in dividends paid.

LATAM Airlines trades at a trailing P/E of 8.8x and a forward P/E of 10.2x, below the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its price-to-sales ratio of 0.9x and EV-to-EBITDA multiple of 9.2x are also lower than peer medians of 1.5x and 13.9x. The company's enterprise value stands at $21.27B against a market cap of $14.20B. Over the past year, the stock returned 10.4%, trailing the S&P 500 (SPY) return of 16.8%, with a year-to-date return of -11.9%.

LATAM Airlines pays a semiannual dividend with an annual forward payout of $1.53 per share, yielding 3.22%. The dividend payout ratio stands at 25.8%, and the company has paid dividends for 2 consecutive years, with the last ex-dividend date occurring on May 8, 2026.

Wall Street analysts maintain 6 Strong Buy ratings and 4 Buy ratings on LTM, with 0 Hold, 0 Sell, and 0 Strong Sell recommendations. The mean price target is $73.86, representing a 55.6% premium over the last close of $47.47. The company beat EPS estimates in each of the last 4 quarters. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $4.72 on revenue of $17.47B. The next earnings date is November 13, 2026.

This page is an AI-written research summary of LATAM Airlines Group S.A. (LTM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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