The guidance cut significantly outweighs the strong 1Q beat. Watch fuel prices and the 2Q26 report for actual margin impact. The stock may face pressure as the market reprices for lower profitability expectations.
Price Chart
Executive Summary
LATAM reported strong 1Q26 results with revenue up 21.7% to $4.15B, net income up 62.1% to $576M, and EPS of $2.01. However, the company significantly lowered full-year 2026 guidance due to a sharp increase in jet fuel prices, cutting adjusted EBITDA guidance from $4.2-4.6B to $3.8-4.2B and raising net leverage guidance from 1.4x to 1.8x.
Key Facts
- 1Q26 total revenues $4,151M (up 21.7% YoY)
- 1Q26 net income attributable to parent $576M (up 62.1% YoY)
- 1Q26 diluted EPS $2.01 per ADS (up 70.7% YoY)
- Adjusted EBITDA margin improved to 31.7% from 28.2%
- Full-year 2026 adjusted EBITDA guidance lowered to $3.8-4.2B from $4.2-4.6B
- Full-year 2026 liquidity guidance cut to $4.5B from $5.0B
- Net leverage guidance raised to 1.8x from 1.4x
- Fuel price assumption increased from $90/bbl to $170/bbl for 2Q26 and 3Q26
- Estimated additional fuel expense of >$700M for 2Q26
Financial Impact
Fuel cost increase expected to exceed $700M in 2Q26; full-year EBITDA guidance cut by $400-800M
Risk Factors
- Sustained high jet fuel prices above $170/bbl
- Further guidance revisions if fuel costs persist
- Brazilian real appreciation affecting costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001047716-26-000064 |
| Document: 0001047716-26-000064-index-headers.html | 0001047716-26-000064 |
| Document: 0001047716-26-000064-index.html | 0001047716-26-000064 |
| Document: 0001047716-26-000064.txt | 0001047716-26-000064 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 6-K | $50.25 | awaiting T+20 | — | $44.87 (−10.71%) |
Aug 10, 2026 11w ago | 6-K | $53.01 $52.03 | ▼ −1.85% | ▼ −0.79% | $44.87 (−15.36%) |
Aug 4, 2026 11w ago | 6-K | $57.70 $51.23 | ▼ −11.21% | ▼ −10.61% | $44.87 (−22.24%) |
Aug 3, 2026 12w ago | 6-K | $55.66 $49.29 | ▼ −11.44% | ▼ −10.21% | $44.87 (−19.39%) |
Jun 11, 2026 19w ago | Institutional Cluster | $51.47 $57.04 | ▲ +10.82% | ▲ +8.93% | $44.87 (−12.82%) |
Jun 8, 2026 20w ago | 6-K | $49.26 $56.73 | ▲ +15.16% | ▲ +13.72% | $44.87 (−8.91%) |
May 5, 2026 24w ago | 6-K | $51.72 $49.71 | ▼ −3.88% | ▼ −6.66% | $44.87 (−13.24%) |
US Market Status
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