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Here's Why Investors Should Bet on LATAM Airlines Stock for Now

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LATAM Airlines Group (LTM - Free Report) is bolstered by its solid demand, boosting the company’s prospects. The robust traffic initiative is also commendable. Due to these tailwinds, LTM shares have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

Upsides for LTM

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by 33.3% over the past 60 days for the current quarter. For 2025, the consensus mark for earnings per share has moved 22.3% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

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Image Source: Zacks Investment Research

Robust Price Performance: A look at the company’s price trend reveals that its shares have risen tremendously over the past year, surpassing the  Zacks Transportation – Airline industry’s 20.4% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Solid Zacks Rank: LATAM Airlines Group currently sports a Zacks Rank #1 (Strong Buy).

Growth Factors: In the first quarter of 2025, LATAM Group saw a strong increase in demand, reflected in both its operational growth and rising passenger numbers. The group expanded its consolidated capacity by 7.3%, largely due to a 10.7% boost in international operations. LATAM also transported nearly 21 million passengers during the quarter, a 3.6% increase compared to the same period in 2024. This growth shows that more travelers are choosing LATAM, especially on international routes, as global travel rebounds and customer confidence strengthens.

To support this rising demand, LATAM focused on improving the overall travel experience. The group achieved a Net Promoter Score (“NPS”) of 56 points, the highest in its history and 5.6 points higher than the previous year, indicating that passengers noticed and appreciated the improvements. Premium travelers, including LATAM Pass Elite members and business-class passengers, rated their experience even higher, giving an NPS of 61 points. By investing in service quality and focusing on customer satisfaction, LATAM not only attracted more passengers but also strengthened loyalty among its most valuable customers.

Stocks to Consider

Investors interested in the Transportation sector may also consider Copa Holdings (CPA - Free Report) and Ryanair (RYAAY - Free Report) .

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

CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 24.2% year to date.

RYAAY currently sports a Zacks Rank of 1.

RYAAY has an expected earnings growth rate of 30.5% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 46.6%. Shares of RYAAY have rallied 30.1% year to date.


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Ryanair Holdings PLC (RYAAY) - free report >>

Copa Holdings, S.A. (CPA) - free report >>

LATAM Airlines Group S.A. (LTM) - free report >>

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