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

LATAM Airlines Group LTM is bolstered by its robust demand and solid operational efficiency. Customer-friendly initiatives are also commendable. With 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 (EPS) has been revised upward by 12.23% over the past 60 days for the current year. For 2026, the consensus mark for EPS has moved 11.2% 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 59.7% over the past year, surpassing the  Zacks Transportation – Airline industry’s 3.5% growth.

Positive Earnings Surprise History: LATAM Airlines 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 belongs currently has a Zacks Industry Rank of 76 (out of 246). Such a favorable rank places it in the top 31% 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 benefits from robust operational efficiency and strong demand, reflected in higher passenger traffic and capacity growth. In August 2025, the airline expanded consolidated capacity by 9.4%, driven by a 12% rise in international operations. It transported nearly 7.7 million passengers, a 9.1% increase from August 2024. This indicates that more travelers are choosing LATAM Airlines, especially on international routes, as global travel rebounds and customer confidence strengthens.

The airline is enhancing its customer experience and brand presence through new initiatives. In the second quarter of 2025, it launched South America’s first Premium Business suites with doors and announced fleet-wide Wi-Fi starting in 2026.

LATAM Airlines sustained a strong NPS of 56, rising to 60 among premium travelers, while expanding domestic routes in Brazil and strengthening regional connectivity. It also earned nine Skytrax awards, including Best Airline in South America for the sixth straight year. On the sustainability front, the airline rolled out fuel-saving APM software and expanded its Avión Solidario program, reinforcing its commitment to efficiency and social responsibility.

Other Stocks to Consider

Investors interested in the Transportation sector may also consider SkyWest SKYW and Lyft LYFT.

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

SKYW 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%.

LYFT currently carries a Zacks Rank #2.

Lyft has an expected earnings growth rate of 24.2% for the current year. The company has a mixed earnings surprise history. Its earnings topped the Zacks Consensus Estimate in two of the trailing four quarters, and missed twice in the remaining, delivering an average beat of 15.76%.

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

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