LTM Stock Surges 28.8% in 3 Months: Is the Rally Sustainable in 2026?

LATAM Airlines Group LTM shares have performed exceedingly well on the bourse of late. Shares of this Santiago, Chile-based company have surged 28.8% over the past three months, outperforming the Zacks Transportation sector’s 19.3% rise.

Given the impressive price performance, let's take a deeper look at the factors driving growth at this express delivery player, which currently carries a Zacks Rank #2 (Buy), and assess whether there is potential for continued gains.

LTM’s proactive strategy underpins its 2026 outlook, as the group targets 8-10% passenger capacity growth while actively safeguarding margins and financial strength. The company fuels expansion through faster-growing international markets and selective domestic increases while tightly controlling unit costs to support an operating margin of 15-17%.

LTM also reinforces its balance sheet by lifting adjusted EBITDA to $4.2-4.6 billion, generating more than $1.7 billion in levered free cash flow and keeping net leverage at or below 1.4x. By emphasizing execution discipline, ample liquidity above US$5 billion, and continued investment in technology and customer experience, LTM positions itself for sustainable and resilient long-term growth.

LATAM Airlines actively executes a disciplined fleet expansion plan, growing its total fleet from 363 aircraft at the end of 2025 to 371 in 2026, 410 in 2027 and 422 thereafter. The strategy centers on narrow-body growth, with the narrow-body fleet rising from 284 to 291, 329 and 343 aircraft, driven largely by an increase in Airbus Neo aircraft from 61 to 68, 94 and 109.

Wide-body capacity expands more selectively from 59 to 60 and 62 aircraft before easing to 60, while the cargo fleet remains largely stable at 20 aircraft, underscoring LATAM’s focus on fuel efficiency, cost discipline and demand-aligned capacity growth.

Estimate Revisions to Head North

Driven by the positives discussed above, the Zacks Consensus Estimate for the final quarter of 2025, full-year 2025, and full-year 2026 has been revised 3.05%, 4.23% and 4.5% upward, respectively, over the past 60 days.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington EXPD and Global Ship Lease GSL.

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

EXPD has an expected earnings growth rate of 3.50% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average beat of 13.9%.

Global Ship Lease currently carries a Zacks Rank #2.

GSL has an expected earnings growth rate of 2.60% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in the trailing four quarters, delivering an average beat of 16.8%.

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

Zacks Investment Research