LATAM Airlines Group reported stronger-than-expected first-quarter results but lowered its full-year guidance due to surging jet fuel prices. Net income rose 62% to $576 million, surpassing analyst estimates of $342.8 million, while adjusted EBITDA increased 37% to $1.3 billion.
The company now anticipates adjusted EBITDA of $3.8 billion to $4.2 billion for 2026, down from the prior range of $4.2 billion to $4.6 billion. Fuel costs are projected at $170 per barrel in the second and third quarters, dropping to $150 in the fourth. This will result in an additional $700 million in fuel expenses for Q2 alone, compared to earlier assumptions, with a $40 million impact already felt in Q1.
In Brazil, LATAM Brasil faces doubled kerosene prices per liter versus February levels, prompting flight adjustments. To counter the pressures, LATAM is implementing fuel hedging with call options for Q2 and Q3, revenue management, capacity tweaks, cost controls, and financial measures.