LATAM lowers its 2026 profit forecast as the fuel shock starts to pressure airline margins.

✈️ LATAM Airlines has cut its 2026 adjusted EBITDA forecast from $4.2–4.6 billion to $3.8–4.2 billion, reflecting the direct impact of sharply higher jet fuel prices amid global energy tensions.
⛽ The company’s new fuel-cost assumptions have risen significantly, with jet fuel now estimated at $170 per barrel in Q2–Q3 and $150 per barrel in Q4, far above the previous $90-per-barrel assumption. In Q2 alone, additional fuel costs could exceed $700 million.
📊 The notable point is that Q1 results were still very strong, with net profit reaching $576 million, up 62.1% year over year, while revenue rose 21.7% to $4.15 billion. This suggests travel demand has not weakened clearly, but cost pressure is arriving faster than the company can fully absorb.
🔎 In the short term, this is negative for airline stocks, but it is not yet a LATAM-specific crisis signal. The market will focus on oil prices, fare increases, and Q2 margins to assess whether the new guidance is already conservative enough.
#AirlineStocks