Nov 3 (Reuters) – LATAM Airlines cut its core earnings outlook for this year on Tuesday as soaring fuel prices squeezed margins, though it raised projected revenues after strong travel demand lifted third-quarter sales.
Latin America’s largest airline group said the quarter showed resilient demand for passenger and cargo services, but also the limits of airlines’ ability to pass higher fuel bills on to travelers.
• Third-quarter revenue came in at $4.57 billion, broadly in line with analysts’ estimates , while adjusted EBITDA of $1.10 billion topped the $1.05 billion consensus from analysts polled by LSEG
• Net profit rose 16% during the quarter to $441 million
• Still, average fuel prices jumped more than 50% from a year earlier, costing the company about $520 million in the quarter and dragging adjusted operating margin down sharply
• LATAM lowered its adjusted EBITDA forecast to $3.9 billion to $4.05 billion from $4.1 billion to $4.4 billion previously, while raising expected 2026 revenue to between $17.6 billion and $17.8 billion from $17.3 billion to $17.7 billion
• Chief Executive Roberto Alvo told Reuters last month the company had already started trimming some planned flying and was tracking toward the lower end of its capacity-growth target as fuel prices stayed high
(Reporting by Gabriel Araujo and Kylie Madry, Editing by Iñigo Alexander)
