LATAM Airlines Group S.A. (NYSE: LTM; SSE: LTM) shared management insights on its strong 2025 performance. The group transported 87.4 million passengers, up on 8.2% capacity growth. It solidified its role as the largest airline in the Southern Hemisphere. Daily, over 239,000 passengers flew affiliates. Cargo affiliates moved over 1 million tons.
Adjusted EBITDAR hit $4.1 billion, a 31.6% rise with 28.2% margin. Q4 EBITDAR reached $1.1 billion at 28.6% margin. Net income attributable to owners totaled $1.5 billion, up 49.4% with 11.2% margin. Cash generation of $1.4 billion funded $585 million in repurchases and $693 million in dividends.
Employee Commitment Drives Record Metrics
Management credited over 41,000 employees for achievements. Their commitment differentiates LATAM at every touchpoint. Organizational Health Index (OHI) hit a record 83 points. This placed the group in the global top decile for the first time.
Culture fosters passion. It boosts passenger experience. Net Promoter Score (NPS) reached 54 points, up 3 from 2024. This marked the highest full-year result.
CEO Alvo on Strengthened Business Model
CEO Roberto Alvo expressed satisfaction with 2025 progress. Results reflect a fortified model. It rests on differentiated value, execution, and discipline. This enables profitable, sustainable growth.
Margin expansion occurred yearly, cycle-independent. Core pillars—choice, dependability, care—drive it. Cost efficiency bolsters profitability. Performance spans geographies, not single markets.
Premium Growth and Cost Discipline
Premium revenues nearly doubled from 2019. Execution excels at every touchpoint. Q4 launched redesigned premium business cabin. Future steps include 2026 Wi-Fi on wide-bodies, 2027 Premium Comfort cabin, and São Paulo Signature Lounge.
Cost control matches premium focus. Hundreds of initiatives optimize operations. Aircraft utilization improves. Maintenance streamlines. Customer experience stays intact.
Financial Strength Enables Investment
Dual revenue-cost focus yields power. Adjusted levered free cash flow topped $1.5 billion. This supported $400 million interim dividend. Balance sheet strengthened.
Adjusted net leverage fell to 1.5x. Liquidity hit 25.7% of trailing revenues. Position funds growth, technology, and experience upgrades.
Awards validated efforts
LATAM earned “Most Improved Brand” globally and “Design Airline of the Year – South America.” It secured fourth straight “Five-Star Global Airline” from APEX and sixth “Best Airline in South America” from Skytrax. LATAM Cargo won “Cargo Airline of the Year 2025.”
