LATAM Airlines Stock Declines 8.3% Since Q4 Earnings Release

LATAM Airlines Group (LTM reported solid fourth-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 $1.69 per share beat the Zacks Consensus Estimate of $1.35 and improved 87.8% year over year. Total revenues of $3.94 billion beat the Zacks Consensus Estimate of $3.87 billion and grew 18.3% year over year, owing to a 20.3% increase in passenger revenues and a 9.6% decrease in cargo revenues.

For the fourth quarter of 2025, passenger and cargo revenues accounted for 87.4% and 10.8% of total operating revenues, respectively.

Shares of LATAM Airlines have declined 4.3% since its fourth-quarter 2025 earnings release on Feb. 3, 2026.

LATAM Airlines Group S.A. Price, Consensus and EPS Surprise

LATAM Airlines Group S.A. price-consensus-eps-surprise-chart | LATAM Airlines Group S.A. Quote

Total adjusted operating expenses grew 12.1% year over year, owing to an 7.7% expansion in passenger operations, and the appreciation of local currencies, mainly the Brazilian real, which strengthened approximately 8% versus the U.S. dollar, and partially offset by a 2.1% reduction in average jet fuel prices (including hedges).

LATAM Airlines’ consolidated capacity (measured in available seat-kilometers or ASKs) grew 7.7% year over year, with a 7.1% year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic). Although traffic improved year over year, it failed to outpace capacity expansion. As a result, the load factor (percentage of seats filled by passengers) fell 0.4 percentage points to 85.1% in the reported quarter.

The carrier transported 22.9 million passengers during the reported quarter, up 6.7% year over year.

As of Dec. 31, 2025, LATAM’s fleet had 371 aircraft, which includes 291 Airbus narrow-body aircraft, three Airbus wide-body aircraft under short-term leases, 57 Boeing wide-body aircraft and 20 Boeing cargo freighters. During the fourth quarter, LTM received five A320Neo, two A321Neo and one B787-9 aircraft.

LTM exited the fourth quarter of 2025 with cash and cash equivalents of $2.15 billion compared with $1.95 billion at the end of the fourth quarter of 2024.

2026 Guidance

For 2026, revenues are expected to be in the $15.5-$16 billion range. The Zacks Consensus Estimate is currently pegged at $15.76 billion.

Adjusted operating income for 2026 is anticipated to be between $2.35 and $2.65 billion. Adjusted operating margin is anticipated to be in the range of 15-17%. Adjusted EBITDA is anticipated in the range of $4.20-$4.60 billion. Adjusted EBITDA margin is anticipated to be in the range of 27%-29%.

For 2026, total ASK is expected to grow in the 8%-10% range compared with 2025 levels. Liquidity is expected to be above $5 billion in the current year.

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

Q4 Performances of Other Transportation Companies

Delta Air Lines DAL reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.

Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown, mainly in the domestic segment, consistent with the company's disclosure last month.

J.B. Hunt Transport Services, Inc. (JBHT) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.

Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and Truckload (JBT), respectively, a 1% decrease in average trucks in Dedicated Contract Services (DCS), and a 7% and 2% decline in load volume in Integrated Capacity Solutions (ICS) and JBI, respectively. The decrease in revenue, excluding fuel surcharge revenue, was partially offset by a 15% increase in volume in JBT, a 1% uptick in productivity, excluding fuel surcharge revenue, in DCS, and an increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased 2% year over year.

United Airlines Holdings, Inc. (UAL) reported solid fourth-quarter 2025 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.

UAL's fourth-quarter 2025 adjusted earnings per share (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.

Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year. Passenger revenues (which accounted for 90.4% of the top line) increased 4.9% year over year to $13.9 billion. UAL flights transported 45,679 passengers in the fourth quarter, up 3% year over year.

Cargo revenues fell 6% year over year to $490 million. Revenues from other sources rose 9.1% year over year to $981 million.

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