During the quarter, LATAM transported more than 22.9 million passengers, marking a continued recovery and expansion in demand across the region. The group increased its consolidated available seat kilometers (ASK)—a measure of capacity—by 9.3% year-over-year, while maintaining a strong load factor of 85.4%, up 0.5 percentage points from the prior year. This growth was particularly driven by domestic operations in Brazil, where LATAM Airlines Brasil launched six new routes, and sustained positive results in international markets.
Revenue performance reflected this momentum, with total operating revenues reaching US$3.856 billion, a 17.3% increase compared to the same quarter in 2024. Passenger revenue surged 18.5%, complemented by a 6.3% rise in cargo revenues. LATAM’s cargo division also earned recognition as the “Airline of the Year 2025” from the British publication Air Cargo News, highlighting the group’s leadership in freight transport throughout South America.
Operational efficiency and disciplined cost management supported an adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) of US$1.15 billion for the quarter. Reflecting confidence in continued growth, LATAM revised its full-year EBITDAR guidance upward to a range between US$4 billion and US$4.1 billion, surpassing its previous estimate of US$3.65 billion to US$3.85 billion.
The airline enhanced its liquidity position by generating US$859 million in adjusted operating cash flow during Q3, ending the period with liquid assets of US$3.6 billion—equivalent to nearly 26% of trailing twelve-month revenues. Leverage metrics remained solid, with a net adjusted debt-to-EBITDAR ratio stable at 1.5 times, underscoring a balanced capital structure amid ongoing investments.
Corporate governance actions included the approval of a shareholder resolution to cancel 5% of the company’s treasury shares, reducing the total outstanding shares to approximately 574.2 billion. This measure aims to optimize LATAM’s capital structure and enhance shareholder value.
On the fleet and network front, LATAM reinforced its long-term strategic plan by securing an agreement with Embraer for up to 74 E195-E2 jets—24 firm orders and 50 options—with delivery scheduled to begin in late 2026. These new aircraft models promise enhanced operating efficiency and increased connectivity in regional markets, initially for the Brazilian subsidiary with potential deployment to other group airlines. The airline also continues modernizing its existing fleet, introducing features such as premium economy cabins on narrow-body aircraft and upcoming launches of long-haul Premium Comfort cabins projected for 2027. Additionally, LATAM has expanded onboard Wi-Fi availability to over 90% of its narrow-body fleet and enhanced wide-body cabins with fully lie-flat business seats and improved privacy, contributing to a record high Net Promoter Score of 56 for customer satisfaction.
Sustainability remains a priority, as the airline offers customers the option to offset their carbon footprint by purchasing verified sustainable aviation fuel (SAF), aligned with global climate standards including CORSIA and GHG Protocol. LATAM’s commitment to environmental responsibility has been recognized by inclusion in S&P Global’s 2025 Sustainability Yearbook.
Together, these financial, operational, and strategic moves position LATAM Airlines Group to capitalize on Latin America’s growing travel demand while maintaining a resilient financial footing and a commitment to enhanced customer experience and environmental stewardship.
This article was curated and published as part of our South American energy market coverage.
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