Here's Why Investors Should Bet on LATAM Airlines Stock for Now

LATAM Airlines Group LTM is bolstered by its solid demand and robust operational efficiency, boosting the company’s prospects. Customer-friendly initiatives are also commendable. Due to these tailwinds, LTM shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

Factors Favoring LTM Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 13.59% over the past 60 days for the current year. For 2026, the consensus mark for earnings per share has moved 12.78% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have surged 84.5% over the past year, surpassing the  Zacks Transportation – Airline industry’s 57.8% growth.

Positive Earnings Surprise History: LATAM Airlines Group has a mixed earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, met once and missed in the remaining, delivering an average surprise of 4.04%.

Solid Zacks Rank: LTM currently sports a Zacks Rank #1 (Strong Buy).

Bullish Industry Rank: The industry to which LATAM Airlines Group belongs currently has a Zacks Industry Rank of 83 (out of 246). Such a favorable rank places it in the top 34% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group to which it belongs.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative in this context.

Growth Factors: LATAM Airlines is benefiting from robust demand, reflected in the company's solid operational efficiency and increased passenger numbers. In July 2025, LTM expanded its consolidated capacity by 10%, largely due to a 12.2% boost in international operations. The company transported nearly eight million passengers, a 7.9% increase compared to the same period in 2024. This growth shows that more travelers are choosing LATAM, especially on international routes, as global travel rebounds and customer confidence strengthens.

Moreover, LATAM Airlines Group strengthened its premium offering and customer experience in the second quarter of 2025 by launching new Premium Business suites with suite doors, the first in South America, and announcing fleet-wide Wi-Fi starting in 2026.

It maintained a strong NPS of 56, rising to 60 among premium passengers. LATAM expanded its network with new domestic routes in Brazil and deepened its partnership with Delta to enhance connectivity. It also received nine Skytrax awards, including Best Airline in South America for the sixth straight year. On the sustainability front, LATAM implemented fuel-saving APM software and expanded its Avión Solidario program, reinforcing its focus on efficiency and social responsibility.

Stocks to Consider

Investors interested in the Transportation sector may also consider The Greenbrier Companies GBX and SkyWest SKYW.

GBX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Greenbrier has an expected earnings growth rate of 33.1% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average beat of 70%.

SKYW currently sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research