LATAM Airlines Stock Price Rises 7.5% Since Q3 Earnings Release

Shares of LATAM Airlines Group (LTM have gained 7.5% since its third-quarter 2025 earnings release on Nov. 14, 2025. The upside can be attributed to the company’s raised full-year guidance.For 2025, revenues are now expected to be in the $14.4-$14.5 billion range (prior view: $14-$14.2 billion). The Zacks Consensus Estimate is currently pegged at $14.16 billion.

Adjusted operating income for 2025 is now anticipated to be between $2.30 and $2.40 billion (prior view: $2-$2.15 billion). Adjusted operating margin is now anticipated to be in the range of 16%-16.5% compared with the prior view of 14%-15%.

Adjusted EBITDAR (earnings before income taxes and financial costs and financial income, plus depreciation and amortization expenses and rentals expenses) is now anticipated in the range of $4.00-$4.10 billion (prior view: $3.65-$3.85 billion). Adjusted EBITDAR margin is now anticipated to be in the range of 28%-28.5% compared with the prior view of 26%-27%.

Details of LTM’s Q3 Earnings

LATAM Airlines reported solid third-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 $1.30 per share beat the Zacks Consensus Estimate of $1.26 and improved 30% year over year. Total revenues of $3.85 billion beat the Zacks Consensus Estimate of $3.61 billion and grew 17.3% year over year, owing to an 18.5% increase in passenger revenues and a 6.3% increase in cargo revenues.

For the third quarter of 2025, passenger and cargo revenues contributed 88% and 10.5% to total revenues, respectively.

Total adjusted operating expenses grew 11.7% year over year to $3.15 billion. The uptick was owing to a 9.3% increase in passenger operations, partially offset by an 11.4% reduction in average jet fuel prices (including hedges).

LATAM Airlines’ consolidated capacity (measured in available seat-kilometers or ASKs) grew 9.3% year over year, with a 10% year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic). Since traffic outpaced capacity expansion, the load factor (percentage of seats filled by passengers) grew 0.5 percentage points to 85.4% in the reported quarter.

The carrier transported 22.9 million passengers during the reported quarter, up 8.3% year over year.

As of Sept. 30, 2025, LATAM’s fleet had 363 aircraft, which includes 284 Airbus narrow-body aircraft, three Airbus wide-body aircraft under short-term leases, 56 Boeing wide-body aircraft and 20 Boeing cargo freighters. During the third quarter, LTM received four A320Neo aircraft.

LTM exited the third quarter of 2025 with cash and cash equivalents of $2.02 billion compared with $1.95 billion at the end of the fourth quarter of 2024.

Remaining Aspects of 2025 Guidance

For 2025, total ASK is expected to grow in the 8.0%-8.5% range (prior view: 8.5-9.5%) compared with 2024 levels. Liquidity is still expected to be above $4 billion in the current year.

For the fourth quarter of 2025, LTM anticipates to receive seven narrow-body aircraft and one wide-body aircraft. LATAM Airlines expects to end 2025 with 371 aircraft, 2026 with 410 aircraft and 2027 with 422 aircraft.

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

Q3 Performances of Other Transportation Companies

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. 

J.B. Hunt Transport Services, Inc. (JBHT) reported third-quarter 2025 earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.47 and improved 18.1% year over year.

Total operating revenues of $3.05 billion surpassed the Zacks Consensus Estimate of $3.02 billion and were down 0.5% year over year. JBHT’s third-quarter revenue performance was hurt by a 1% and 4% decline in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decrease in load volume of 8% and 1% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and 8% fewer stops in Final Mile Services (FMS). These items were partially offset by a 3 % improvement in DCS productivity, a 9% increase in revenue per load in ICS and 14% load growth in JBT. Total operating revenue, excluding fuel surcharge revenue, fell less than 1% year over year.

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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