LATAM cuts profit outlook as fuel costs outpace fare hikes

LATAM Airlines Group has reduced its projected annual profits due to significantly higher fuel expenses exceeding increases in ticket prices. The Santiago, Chile-based carrier achieved an adjusted operating profit of $573 million for the third quarter. Despite successfully passing approximately 80% of elevated fuel costs onto passengers through increased fares, margins were negatively impacted. This outcome reflects a substantial difference between rising operational expenditures and revenue generation. Analysts anticipate continued challenges for LATAM as global energy markets remain volatile and fare hikes struggle to fully offset escalating fuel bills.