LATAM Airlines Downgraded Amid Rising Jet Fuel Costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 08 2026
0mins
Should l Buy LTM?
Source: CNBC
LATAM Airlines Group SA's stock surged by 11.59% and reached a 20-day high during regular trading.
However, analysts downgraded LATAM Airlines from Buy to Sell due to a potential 80% spike in jet fuel costs stemming from geopolitical conflicts, which are expected to severely impact the company's aggressive growth plans and 2026 margin forecasts of 11% revenue growth and a 27% EBITDA margin.
This downgrade reflects significant concerns about the airline's ability to maintain profitability in the face of rising operational costs, which could hinder its growth trajectory.
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Analyst Views on LTM
Wall Street analysts forecast LTM stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 51.760
Low
58.50
Averages
59.25
High
60.00
Current: 51.760
Low
58.50
Averages
59.25
High
60.00
About LTM
LATAM Airlines Group SA is a Chile-based company, which is engaged in passenger and cargo air transportation, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil and in a developed series of regional and international routes in America, Europe and Oceania. These businesses are performed directly or through its subsidiaries in different countries. It operates through two segments: the Air transportation business and the Coalition and loyalty program Multiplus. It Air transportation segment corresponds to the route network for air transport. Its segment of Coalition and loyalty program called Multiplus is a frequent flyer programs, which operate as a unilateral system of loyalty that offers a flexible coalition system. The Company operates a fleet of over 329 aircrafts. Its passenger aircrafts include Airbus A319-100, Airbus A350-900, Boeing 767-300ER, Boeing 787-8, Boeing 787-9 and Boeing 777-300ER.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Strategic Partnership: LTM's long-term strategic partnership with Oracle allows it to align closely with Oracle's innovation roadmap, enabling clients to accelerate the adoption of next-generation solutions and drive enterprise transformation while creating sustainable business value.
See More
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- Operational Disruptions: Airlines are incurring costly rerouting due to the conflict, which diminishes operational efficiency, particularly affecting low-cost and unhedged operators who are likely to see their profit margins squeezed.
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See More
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- Market Expansion Strategy: CDB Aviation's Head of Commercial emphasized that as air travel in South America continues to grow, providing innovative fleet solutions will be key to the strategic growth of regional airlines, with CDB actively promoting market expansion for South American carriers.
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See More
