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LATAM Airlines Stock Soars 8% After Raising Revenue Outlook Despite Lower EBITDA Guidance

The Chilean carrier lifted its 2026 revenue forecast to $17.6 billion to $17.8 billion, even as fuel costs trimmed its earnings outlook.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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LATAM Airlines Stock Soars 8% After Raising Revenue Outlook Despite Lower EBITDA Guidance

LATAM Airlines Group, the Chilean carrier that is Latin America's largest airline group, saw its shares climb 8.19% to $47.70 in Wednesday trading as of 3:31 p.m. ET, after it reported third-quarter profit of $440.6 million and raised its 2026 revenue guidance. It also trimmed its core earnings outlook because of fuel costs.

Revenue up, earnings guidance down

Third-quarter revenue was $4.6 billion, up 18.4% from a year earlier. The company raised its full-year 2026 revenue guidance to $17.6 billion to $17.8 billion.

It also lowered its full-year adjusted EBITDA guidance to $3.9 billion to $4.05 billion, citing higher fuel prices expected in the fourth quarter. EBITDA is earnings before interest, taxes, depreciation and amortization.

The load factor, the share of seats filled, was 83.7% in the quarter, down 1.7 percentage points from a year earlier, as the group prioritized revenue per seat over filling planes, the company said.

Fuel is the pressure point

Higher jet fuel prices added $520 million in costs in the quarter, the company said. CEO Roberto Alvo Milosawlewitsch said on the call that fuel prices have kept rising, with no meaningful relief expected in the short term.

A rally that recovers part of the slide

The gain added about $1 billion in market value, bringing the market cap to $13.7 billion. It came the session after the company said in a 6-K filing on Tuesday that it had published its third-quarter results, which it discussed on Wednesday's call.

The stock is on pace for its biggest one-day gain since June 11, when it rose 8.5%.

As of Tuesday's close, the shares were down about 18% for the year, while the S&P 500 was up about 11%. Before this session the stock sat 36% below its highest close of the past year, set on February 2, so Wednesday's move recovers only part of that ground.

With fuel costs rising and no short-term relief expected, the CEO's own words on the call frame the fourth quarter as the test of the lowered earnings range.

Sources

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