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

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Key Takeaways

  • LTM's rising demand and efficiency have fueled strong share gains and upward earnings estimates.
  • International capacity grew 7.2% in October 2025 as passengers increased 7.7% y/y.
  • New onboard upgrades and lounges underscore LATAM Airlines' push to enhance its premium experience.

LATAM Airlines Group (LTM - Free Report) is benefiting from its robust demand and solid operational efficiency. Its customer-friendly initiatives are also commendable. With 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.

Factors Favoring LTM Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share (EPS) has been revised upward by 3.05% over the past 60 days for the current quarter. For 2025, the consensus mark for EPS has moved 5.34% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have surged 69.4% over the past year, surpassing the  Zacks Transportation – Airline industry’s 0.9% fall.

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Positive Earnings Surprise History: LATAM Airlines has a mixed earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once in the remaining, delivering an average surprise of 29.84%.

Solid Zacks Rank: LTM currently carries a Zacks Rank #2 (Buy).

Growth Factors: LATAM Airlines benefits from robust operational efficiency and strong demand, reflected in higher passenger traffic and capacity growth. In October 2025, the airline expanded consolidated capacity by 7.4%, driven by a 7.2% rise in international operations. It transported nearly 7.7 million passengers, a 7.7% increase from October 2024. This indicates that more travelers are choosing LATAM Airlines, especially on international routes, as global travel rebounds and customer confidence strengthens.

The airline continues to elevate its customer experience and brand presence with premium-focused initiatives. In the third quarter of 2025, it introduced an enhanced onboard experience across its network, with further upgrades ahead, including the Premium Comfort cabin in 2027 and the Lima LATAM Signature Lounge. These initiatives reinforce its commitment to comfort and connectivity while strengthening Lima’s role as a key premium hub in the region.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington (EXPD - Free Report) and SkyWest (SKYW - Free Report) .

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 2.3% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%.

SKYW currently carries a Zacks Rank #2.

SkyWest has an expected earnings growth rate of 33% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.24%.


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Expeditors International of Washington, Inc. (EXPD) - free report >>

SkyWest, Inc. (SKYW) - free report >>

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

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