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

LATAM Airlines Group LTM benefited from robust demand and solid operational efficiency, which boosted the company’s top-line results. With these tailwinds, LTM shares have performed impressively on the bourses. If you have not yet taken advantage of its share price appreciation, it is time to do so.

Let us delve deeper.

Factors Favoring LTM Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share (EPS) has been revised upward by 7.1% over the past 60 days for the current year. For 2027, the consensus mark for EPS has moved 9% north over 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 85.2% over the past year, surpassing the Zacks Transportation – Airline industry’s 19.2% growth.

Positive Earnings Surprise History: LATAM Airlines has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average surprise of 36.1%.

Solid Zacks Rank: LTM currently carries a Zacks Rank #2 (Buy).

Bullish Industry Rank: The industry to which LATAM Airlines belongs currently has a Zacks Industry Rank of 29 (out of 246). Such a favorable rank places it in the top 12% 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 January 2026, the airline expanded consolidated capacity 11.1%, driven by a 15.3% rise in international operations. It transported 8.2 million passengers, a 9.1% increase from January 2025. This indicates that more travelers are choosing LTM, especially on international routes, as global travel rebounds and customer confidence strengthens.

LTM increased operating revenues by 16.3% year over year to $3.95 billion in the fourth quarter of 2025, driven by strong passenger demand. The company grew passenger revenues 20.3% to $3.45 billion, supported by higher unit revenues and capacity expansion, with passenger operations contributing 87.4% to the total revenues. Cargo revenues declined 9.6% to $425 million due to lower unit revenues as market conditions normalized. LATAM Airlines boosted other income to $74 million, driven by strong ancillary services performance.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may consider Allegiant ALGT and Southwest Airlines LUV. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ALGT currently sports a Zacks Rank #1.

Allegiant has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met the mark once, delivering an average beat of 23.6%.

Southwest Airlines presently flaunts a Zacks Rank #1.

LUV has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, and missed the mark once, delivering an average beat of 253.9%.

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

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