Latam Says Brazil Demand Strong, Bookings Steady As Fare: sensitive travel softens

LATAM Airlines

22/06/2026 10:00

By Kylie Madry

    MEXICO CITY, June 22 (Reuters) - LATAM Airlines LTM.SN said demand in Brazil remained strong and forward bookings were steady, even as some more price-sensitive travel segments softened after the recent jump in fuel prices tied to the conflict in the Middle East.
Investor relations head Tori Creighton told Reuters that Brazil continued to stand out in both domestic and international markets, while overall booking trends and load factors remained healthy, with no significant impact on future reservations.
Creighton said the weaker demand seen by the carrier in some fare-sensitive segments had so far been offset by strength elsewhere in its network.
LATAM's outlook grew more cautious in recent months after the carrier said higher fuel prices would weigh on results despite a record first quarter.
LATAM has said the rise in fuel prices added about $40 million to first-quarter operating costs and could add another $700 million in the second quarter, also assuming jet fuel prices of $170 a barrel in the second and third quarters and $150 a barrel in the fourth. Jet fuel averaged at about $139 a barrel by mid-June, according to industry data.
LATAM also said it expects a mid-to-low single-digit adjusted operating margin in the second quarter, down from 19.8% in the first quarter. The airline will likely post results in late July.
Like other airlines, LATAM uses hedging to limit its exposure to swings in fuel prices. Those contracts allow carriers to lock in or cap part of their fuel costs in advance, cushioning the impact of a spike, though not fully eliminating it.
Creighton said hedges put in place before the Middle East conflict already provided some protection, and that LATAM later added short-term cover for the second and third quarters of 2026.
Asked whether the airline would raise fares further, impose surcharges or make additional capacity adjustments, she did not give details, saying only that LATAM was relying on hedging, revenue management, efficiency measures and operating flexibility.

 (Reporting by Kylie Madry; Editing by Alistair Bell)
 ((Kylie.Madry@thomsonreuters.com;))