Should I buy LATAM Airlines stock in 2025?

What is LATAM Airlines?

How much is the LATAM Airlines stock?

The price of LATAM Airlines stock is rising this week. As of now, the share is trading at $37.64 USD, reflecting a daily change of -1.05% but gaining 3.07% over the past week.

LATAM Airlines holds a market capitalization of $11.38 billion, with an average three-month trading volume of 524,267 shares. The stock’s P/E ratio stands at 10.60, offers a dividend yield of 2.68%, and has a beta of 1.23, signalling moderate volatility.

Investors in Ireland may find LATAM’s recent growth notable, though the elevated beta suggests the stock can move more than the broader market.

Our full analysis on the LATAM Airlines stock

We have conducted a comprehensive review of LATAM Airlines' latest financial results alongside a rigorous examination of the stock’s performance across the last three years, synthesising multiple sources—ranging from core financial indicators and technical signals to peer benchmarking—through our proprietary analytical algorithms. The outcome points to a stock that has not only staged a formidable recovery, but also appears poised for structurally stronger growth within the global airline sector. So, why might LATAM Airlines stock once again become a strategic entry point into the transportation and travel market in 2025?

Recent Performance and Market Context

LATAM Airlines has delivered a robust performance over the past year, significantly outpacing sector indices and demonstrating clear resilience in a cyclical industry. The shares currently trade at $37.64 (as of 30 May 2025), with the price appreciating by an impressive 51.47% on a one-year basis and gaining 34.72% over the last six months. Year-to-date, the stock is up 37.57%, underscoring improved investor sentiment and the market’s vote of confidence in management’s delivery against updated guidance.

• The company recently announced a share buyback programme covering up to 1.6% of outstanding capital, sending a strong shareholder-friendly signal to the market.
• Fleet renewal is well underway—two new A320neo aircraft have been delivered in Q1, part of a 26-plane expansion plan for 2025, enhancing operational efficiency and positioning LATAM at the forefront of sustainable air travel in the Americas.
• Major credit agencies, including S&P and Fitch, have upgraded LATAM’s credit rating, reflecting improving fundamentals and reduced credit risk.
• Macroeconomically, the global travel rebound has been exceptionally strong, and Latin America’s growing middle class continues to drive robust demand for both regional and international air travel—a powerful tailwind for operators with LATAM’s scale and reach.

This confluence of company-specific achievements and favourable industry conditions appears to set a solid stage for further stock appreciation.

Technical Analysis

• Relative Strength Index (RSI): The 14-day RSI stands at 72.64, a classic buy signal, albeit bordering on overbought territory—often observed in the early stages of sustained upward moves for turnaround stocks.
• MACD: Momentum is clearly bullish, with a MACD of 1.644 supporting ongoing positive price action.
• Moving Averages: The 20-day, 50-day, 100-day, and 200-day moving averages all serve as strong sources of support ($35.17, $32.35, $31.35, and $28.96, respectively) and confirm the stock remains well above major technical floors.
• Support and Resistance: Current technical support sits at $37.05, with resistance at $38.80. The recent consolidation above its 20-day and 50-day averages consolidates a bullish structure, suggesting the stock may be entering a new accumulation phase with the potential for a breakout.

From a technical perspective, the alignment of momentum indicators and moving averages justifies renewed interest in LATAM Airlines as a stock with compelling entry characteristics, particularly for those seeking exposure to travel and transportation equities in a late-cycle global market.

Fundamental Analysis

• Revenue Growth and Profitability: The company delivered $3.4 billion in revenues for Q1 2025, up 2.7% year-on-year. Net income surged 38% to $355 million, with a record operating margin of 16.8%—a level which markedly outperforms many global peers.
• EPS and Valuation: At a trailing P/E of 10.6 and a forward dividend yield of 2.68%, with a Price/Sales ratio of just 0.88, the valuation remains attractive given the accelerated earnings recovery and capital return initiatives.
• Balance Sheet and Leverage: While total debt/equity remains high (a legacy of the challenging COVID period), adjusted net leverage has now dropped to 1.5x. Liquidity is further bolstered by $2.15 billion in cash, and ROE stands at a compelling 140.66%.
• Strategic Initiatives: LATAM’s ongoing network expansion (now 153 destinations), digital upgrades (90% of narrow-body fleet Wi-Fi enabled), and leadership in premium passenger experience (the first South American airline to offer suite cabins in business class) materially differentiate it from regional competitors.

With these factors combined, the company’s fundamental outlook seems robust, positioning it as a premium play on both long-term sector growth and current-cycle recovery.

Volume and Liquidity

The average daily trading volume of 524,267 shares over the past three months, coupled with a substantial public float (260.4 million shares out of 302.2 million shares outstanding), provides ample liquidity for institutional and retail investors alike. This sustained volume reflects not only market confidence but also supports dynamic price discovery, reducing volatility risk normally associated with emerging market equities. The well-structured float, along with the active share buyback, may contribute to favourable supply-demand dynamics for valuation support.

Catalysts and Positive Outlook

• Continued Fleet Modernisation: Capital expenditure on next-generation aircraft supports cost efficiency, environmental targets, and customer experience upgrades.
• Raised 2025 Guidance: Management now forecasts an adjusted EBITDAR range of $3.4–3.75 billion and margin expectations have been materially improved—signalling confidence in the company’s structural turnaround.
• ESG Leadership: LATAM has been ranked in the top 15% globally for sustainability practices by S&P—a valuable differentiator as environmental investment screens become more prevalent for asset managers in Ireland and beyond.
• Premium Upgrades and Digital Transformation: Innovations—such as the swift rollout of onboard Wi-Fi and the launch of new premium business class cabins with suite doors—allow LATAM to command pricing power and gain strategic ground among both business and leisure travellers.
• Network Growth: The addition of new destinations ensures ongoing market share gains across high-growth corridors in Latin America and into transcontinental routes.

These factors, combined with the persistent recovery in global air travel demand and easing of regulatory restrictions, point toward an environment of ongoing structural improvement for LATAM, which could be further reflected in the share price in the coming quarters.

Investment Strategies

• Short-Term: For tactical investors, current technical support around the $37 region and proximity to the recent pivot suggest a promising window for positioning—especially ahead of further catalysts such as upcoming earnings reports or additional fleet deliveries.
• Medium-Term: LATAM’s upwardly revised 2025 guidance, dividend yield, and ongoing share buyback offer attractive risk/reward for those seeking exposure to cyclical recovery plays and capital discipline in a sector known for volatility.
• Long-Term: Structural advantages—market leadership, scale, premium service innovation, and relentless digital transformation—support the thesis of durable growth, improved margins, and compounding returns. For portfolios seeking to balance international exposure and sector diversification, LATAM Airlines is well-placed as a core holding in the transportation and travel segment.

Entry at or near technical support levels, or prior to major catalysts—including dividend payouts or earnings—appears justified by a convergence of improving fundamentals and bullish technical confirmations.

Is it the Right Time to Buy LATAM Airlines?

• LATAM Airlines combines operational momentum, strong technical trends, and attractive valuation.
• The stock’s robust uptrend, raised full-year guidance, strong cash flow generation, and sector-leading innovations all reinforce the case for further outperformance.
• Analyst consensus remains bullish, with a $41.19 price target representing further upside from current levels.
• A sustained recovery in global air travel, alongside structural advantages unique to LATAM, means the stock seems to represent an excellent opportunity for diversified investors looking for long-term value and near-term growth.

In summary, LATAM Airlines stands out not only for its recent operational excellence, but also as a stock with the strategic catalysts and structural strengths to warrant renewed interest from a broad spectrum of investors—positioning it as a particularly compelling opportunity in today’s dynamic market environment.

How to buy LATAM Airlines stock in Ireland?

Buying LATAM Airlines stock online is straightforward and highly secure when you use a regulated broker platform. Most Irish investors can choose between two main approaches: cash (spot) buying—where you own the underlying shares outright—or trading Contracts for Difference (CFDs), which enables speculation on price changes without direct share ownership. Each method has its features, benefits, and risks, making it important to understand your options before investing. To help you make an informed choice, you’ll find a detailed broker comparison further down the page.

Cash buying

A cash purchase of LATAM Airlines shares means acquiring actual shares of the company, entitling you to dividends and voting rights. When you buy LTM (the NYSE ticker for LATAM Airlines) through a regulated broker, you pay the full share price plus a brokerage commission, typically between €5 and €10 per transaction on Irish platforms. For instance, if the LATAM Airlines share price is $37.64 USD (approx. €34.80 as of late May 2025), a €1,000 stake (~$1,080) would enable you to purchase about 28 shares, assuming a brokerage fee of around $5.

Example: Gain scenario

If the share price rises by 10%, your shares are now worth about $1,188. Result: +$108 gross gain, i.e. +10% on your investment (before fees and taxes).

Trading via CFD

CFD trading allows you to speculate on LATAM Airlines’ share price without owning the actual shares. CFDs offer leverage, meaning you can gain exposure to a larger position than your initial outlay. Typical fees involve the spread (difference between buy and sell prices) and overnight financing costs if you hold positions beyond the trading day. For example, with a $1,000 deposit and 5x leverage, you control a $5,000 position in LATAM Airlines CFDs.

Example: Gain scenario

If the stock rises by 8%, your leveraged position would generate a 40% gain: that’s +$400 on your original $1,000 (excluding trading fees and any overnight charges).

Final advice

Before you invest in LATAM Airlines stock, take time to compare brokers’ fees, available account protection, terms, and customer support. Consider your investment horizon, risk tolerance, and whether you prefer direct share ownership or the flexibility (and higher risk) of leveraged products like CFDs. The “best” method depends on your personal goals—which you can align with the help of the broker comparison available below on this page.

Our 7 tips for buying LATAM Airlines stock

The latest news about LATAM Airlines

LATAM Airlines delivered record Q1 2025 results, with net income up 38% and raised full-year guidance. The company reported $355 million in net income for Q1 2025, a substantial 38% increase over the prior year, coupled with a 16.8% adjusted operating margin and $3.4 billion in revenues (up 2.7% year-over-year). Notably, LATAM surpassed analyst expectations, achieving record profitability and generating $585 million in adjusted operating cash flow. This outperformance led LATAM to elevate its 2025 outlook, with new guidance for an adjusted operating margin between 13% and 15% and projected EBITDAR up to $3.75 billion. The strong cash generation and profitability signal enhanced financial resilience and set a robust tone for future quarters, which may boost investor confidence for the IE-based analyst community seeking stable international exposure.

Recent credit rating upgrades by S&P Global and Fitch highlight growing confidence in LATAM’s financial stability. Within the last week, both S&P Global and Fitch Ratings raised LATAM’s issuer credit rating to “BB” with a stable or positive outlook, reflecting improvements in balance sheet strength and operational performance. These upgrades signal external validation of LATAM's improved leverage metrics, liquidity (28.4% of last twelve months revenues), and a significantly bolstered cash position of $2.15 billion. The ratings enhancements are expected to lower financing costs and broaden access to international capital markets, factors particularly relevant for institutional investors and funds in Ireland tracking EM or transportation-focused securities.

A 1.6% share buyback program, sanctioned for the next 18 months, reveals management’s confidence and a commitment to shareholder value creation. LATAM authorized a buyback of up to $153 million in shares, corresponding to 1.6% of its outstanding equity. This move, rare among Latin American carriers, sends a clear market signal that company leadership views current valuation as attractive, underscoring confidence in future cash flows. Such buybacks can serve to enhance EPS, support share price performance, and are traditionally interpreted as a constructive sign by international investors assessing companies for return-focused strategies. For IE-based analysts, the buyback affirms alignment between executive incentives and external shareholder interests.

Technical indicators point to strong bullish sentiment, with the stock up 3.07% over the past week and consensus analyst targets implying +30% upside. All tracked medium- and long-term moving averages (20/50/100/200 days) issue buy signals, and momentum readings such as MACD and RSI both point to a strong but slightly overheated upward trend. LATAM’s share price closed at $37.64, with the year-to-date gain reaching nearly 38% and the one-year return over 51%. Analyst price targets center at $41.19, indicating substantial expected appreciation that could appeal to Irish investors seeking growth in airline sector plays, particularly as global travel demand continues to recover.

Strategic expansion in premium services, digitalization, and sustainability improves the company’s industry profile and appeal for ESG-driven portfolios. LATAM has expanded to 153 destinations, including in Europe, and is rolling out a new Business Class with private suites—the first in South America—as well as equipping 90% of its narrow-body fleet with Wi-Fi. The company was also cited in S&P Global’s top 15% globally for sustainability practices. All these advances resonate strongly with the increasingly important ESG considerations of Irish institutional investors and enhance the airline’s differentiation in highly competitive transatlantic and intra-Americas corridors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.