LTM LATAM Airlines Group S.A. - ADR

Latin American airlines are considering returning to Venezuela as diplomatic relations improve and opportunities to restore routes to Caracas reopen. However, damaged airport infrastructure following June’s deadly earthquakes and outdated aviation regulations remain major obstacles to a broader recovery. Peter Cerdá, CEO of the Latin American and Caribbean Air Transport Association (ALTA), said Venezuela has significant long-term potential because of its strategic geographic location, but rebuilding the country’s aviation infrastructure—particularly Maiquetía International Airport near Caracas—is the immediate priority. ALTA has maintained dialogue with Venezuelan authorities, although emergency recovery efforts have taken precedence over broader regulatory reforms. LATAM Airlines expressed optimism about the reopening process and improving diplomatic relations between Chile and Venezuela. CEO Roberto Alvo said the airline would evaluate new routes as conditions improve. $LTM

S&P Global Ratings upgraded LATAM Airlines’ issuer credit rating to BB+ from BB, citing strong first-half 2026 performance despite significant market volatility. The agency affirmed a BBB- rating on LATAM’s senior secured bonds maturing in 2030 and 2031, with a Recovery Rating of 1, and maintained a stable outlook. LATAM managed an 80% year-over-year increase in fuel prices during the first half of 2026, while passenger revenue rose 27.9% and revenue per available seat kilometer increased 17.5% in Q2. S&P expects available seat kilometers to grow 9%-10% and load factors to reach about 84%, supporting adjusted EBITDA of roughly $4.3 billion in 2026. The airline plans to add a net 69 aircraft by 2028 through Airbus, Boeing and Embraer orders. S&P expects adjusted gross debt, including operating leases, to increase by about $3.5 billion-$4 billion through 2028, while free operating cash flow is projected at approximately $1.3 billion in 2026 and $1.9 billion in 2027. $LTM $SPGI