LATAM Airlines Reports $355 Million Net Profit in Q1 2025, Boosts Guidance for Full Year
LATAM Airlines Group reported strong financial and operational performance for the first quarter of 2025, posting a net profit of US$355 million, a 38% increase compared to the same period in 2024.
The group transported 21 million passengers during the first three months of the year, up 3.6% year-over-year. Operating revenue totaled US$3.411 billion, rising 2.7% from 2024, driven by a 1.6% increase in passenger revenue and a 9.8% surge in cargo revenue.
Profitability metrics remained robust, with an adjusted operating margin of 16.8%. The adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and aircraft rentals) reached nearly US$1 billion, setting a first-quarter record. Adjusted operating income rose 23.9% year-over-year to US$573 million.
These results allowed LATAM to generate US$585 million in adjusted operating cash flow and US$189 million in net cash for the quarter. The group ended the period with liquidity equivalent to 28.4% of the past twelve months' revenue, and an adjusted net leverage ratio of 1.5x.
Capacity, measured in available seat kilometers (ASK), grew 7.3%, including a 10.7% increase in international operations. LATAM’s network expanded to 153 destinations in 27 countries by the end of March 2025.
As part of its focus on enhancing the passenger experience, nearly 90% of the narrow-body fleet now offers Wi-Fi, and 61% of wide-body aircraft feature modernized interiors. Additionally, the entire narrow-body fleet now includes premium economy cabins for South American flights.
LATAM also unveiled new business class cabins across its wide-body fleet, featuring privacy doors, fully flat seats, and high-definition entertainment screens. These efforts helped LATAM achieve a Net Promoter Score (NPS) of 56, the highest in its history.
The company added two new Airbus A320neo aircraft during the quarter, part of a 26-plane delivery schedule for 2025 aimed at boosting fuel efficiency and lowering emissions. The group’s mixed fleet includes Boeing 767, 777, and 787, along with Airbus A319, A320, A320neo, A321, and A321neo aircraft. LATAM Cargo operates a fleet of 20 freighters.
On the sustainability front, S&P Global included LATAM in its 2025 Sustainability Yearbook, recognizing outstanding performance in environmental, social, and governance (ESG) practices. Only six airlines worldwide received this distinction.
Outlook and Corporate Actions
On the back of its strong performance and a stable demand environment, LATAM has upgraded its 2025 guidance. It now expects an adjusted operating margin of 13.0% to 15.0% (previously 12.0%–13.5%) and an adjusted EBITDAR of US$3.4–3.75 billion (previously US$3.25–3.6 billion).
Ricardo Bottas, CFO of LATAM Airlines Group, stated: “LATAM’s operational and financial adaptability positions us well to navigate the months ahead, leveraging the group’s agility to deliver strong results and seize regional opportunities.” He added that despite macroeconomic challenges, LATAM remains focused on “profitable growth, elevating the customer experience, boosting employee engagement, and delivering value for shareholders.”
Additionally, the company announced a share buyback program of up to 1.6% of its outstanding capital, executed through a Firm Offer Block (OFB) on the Santiago Stock Exchange, open through April 30. In parallel, S&P Global Ratings and Fitch Ratings both upgraded LATAM’s credit rating to “BB”, with stable and positive outlooks, respectively.
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