DALLAS — LATAM Airlines Group (LA) today reported its financial results for the first quarter of 2025.
The group closed the period with US$355 million in net income, 38% higher than the first quarter of 2024, and an adjusted operating margin of 16.8%. The group also carried about 21 million passengers, which is a 3.6% rise over the same time last year.
With an adjusted EBITDAR of nearly US$1 billion, LA set a new record for financial profitability in the first quarter. This achievement is a result of the group's constant and disciplined management in the face of strong demand and customer preference for its value proposition.
Additionally, a 1.6% increase in passenger revenues and a 9.8% rise in cargo revenues contributed to LA's 2.7% operational revenue growth, reaching US$3.4 billion. In comparison to the same quarter last year, the adjusted operational result increased by 23.9% to US$573 million.
Capacity, Guidance
In addition to its record profitability, LA generated US$585 million in adjusted operating cash flow and US$189 million in net cash during the first quarter, closing the period with a liquidity of 28.4% of its revenues over the past 12 months and an adjusted net leverage of 1.5 times.
The group's consolidated capacity, expressed in available seat kilometers (ASK), increased by 7.3%, primarily due to a 10.7% growth in foreign operations. The group's expansive network, which expanded from 151 locations in December 2024 to 153 destinations in 27 countries in March 2025, continued to draw travelers who appreciated the connectivity it provided.
LATAM improved and modified its guidance for the entire year 2025 as a result of these findings and the steady demand situation. In addition to an adjusted EBITDAR of US$3.4 billion to US$3.75 billion, which is higher than the US$3.25 billion to US$3.6 billion disclosed in December 2025, the company now anticipates an adjusted operating margin of 13.0% to 15.0%, which is higher than the 12.0% to 13.5% billion declared on December 3, 2024.
Passenger Experience
In Q1 2025, the LA enhanced its customer experience by upgrading digital services, modernizing cabin interiors, expanding fleet-wide Wi-Fi, and introducing a premium economy option across all narrow-body aircraft. A new Business Class with suite doors debuted on wide-body planes, alongside a new “Signature Check-in” at Santiago Airport and plans for a premium lounge in São Paulo by 2027.
These improvements drove the group's highest-ever Net Promoter Score of 56. The group also added two fuel-efficient A320neo aircraft. It earned a spot in the S&P Global Sustainability Yearbook, recognizing it as one of the top six most sustainable companies in its industry globally.
Additional financial information is available here.
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