LATAM Airlines cuts 2026 forecast on rising fuel costs

LATAM AIRLINES GROUP SA cut its 2026 EBITDA forecast to a range of $3.8 billion to $4.2 billion on Tuesday evening. The Chile-based carrier previously projected $4.2 billion to $4.6 billion before a spike in fuel costs. Investors must weigh the impact of Middle East instability on airline margins as fuel expenses threaten to erase recent revenue gains.

### Fuel Costs Surge on Geopolitical Tensions The downward revision follows a sharp rise in Brent Crude Oil prices after United States and Israel strikes on Iran disrupted traffic through the Strait of Hormuz. LATAM now assumes jet fuel will average $170 per barrel through the third quarter, nearly double its prior $90 estimate. This shift represents the industry's most severe crisis since the COVID-19 pandemic.