LATAM Airlines' Q3 Earnings Coming Up: What's in Store for the Stock?

LATAM Airlines Group S.A. (LTM) is scheduled to report third-quarter 2025 results on Nov. 14, after market close.

LATAM Airlines has a solid earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (met the mark once and missed the mark in the remaining quarter), delivering an average beat of 4.04%.

Let’s see how things have shaped up for LATAM Airlines this earnings season.

Factors Likely to Have Influenced LTM’s Q3 Performance

The Zacks Consensus Estimate for LTM’s third-quarter 2025 revenues is pegged at $3.61 billion, indicating a 9.96% increase year over year. The Zacks Consensus Estimate for LTM’s third-quarter 2025 earnings per share has remained unchanged in the past 60 days at $1.26 per share. The consensus mark implies 26% growth from the year-ago actuals.

We expect LTM’s performance in the third quarter to benefit from its lean cost structure, expanding operations and strategic partnerships. Improvement in air travel demand following the end of the pandemic and normalization of economic activities bodes well for LATAM's top line. Its focus on premium traffic presents significant opportunities for revenue growth and margin expansion.  

LTM’s consistent efforts to reward shareholders with share repurchases look impressive as well. Such shareholder-friendly moves boost investor confidence and positively impact the company’s bottom line.

On the flip side, LATAM Airlines continues to grapple with the issues of foreign exchange-related risks, competitive Latin America’s aviation space and share price volatility. Geopolitical uncertainty, tariff-related pressures and persistent inflation are likely to have weighed on LTM’s operations. The ongoing economic uncertainties and the resultant reduction in consumer and corporate confidence are likely to have hurt the company’s prospects.

Escalated labor and airport costs are also likely to have been high, which would have hurt the company’s bottom-line performance in the September quarter. Despite costs on aircraft fuel decreasing year over year, LTM expects to continue experiencing increased cost pressure from the labor agreements, deals inked with the pilots and increase in passenger operations.

What Our Model Says About LTM

Our proven model does not conclusively predict an earnings beat for LATAM Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

LATAM Airlines has an Earnings ESP of 0.00% and a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Highlights of LTM’s Q2 Earnings

LATAM Airlines reported solid second-quarter 2025 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.

Quarterly earnings of 81 cents per share beat the Zacks Consensus Estimate of 66 cents and improved year over year. Total revenues of $3.27 billion beat the Zacks Consensus Estimate of $3.22 billion and grew 8.2% year over year owing to an 8.5% increase in passenger revenues and a 10.2% uptick in cargo revenues.

Q3 Performance of Some Other Stocks Belonging to LTM's Industry

Delta Air Lines DAL reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.

Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion. 

United Airlines Holdings, Inc. (UAL) reported mixed third-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's third-quarter 2025 adjusted earnings per share (EPS) (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25 and $2.75.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.

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

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