The Latam Airlines Investor Day held this Tuesday at the New York Stock Exchange was full of news. In addition to outlining its investment plan of US$3.4 billion for 2026 and 2027, the company explained what the strategic focuses of growth will be: premium passengers and a new and larger fleet.
The occasion showcased the main executives – the group’s CEO Roberto Alvo; the Chief Customer and Experience Offficer, Paulo Miranda; the commercial manager, Ramiro Alfonsín, the Chief Digital and IT Officer, Juliana Rios; and CFO Ricardo Bottas – detailing the different topics, with a common key, a roadmap that “will allow profitable and sustainable growth, and the creation of long-term value.”
Roberto Alvo summarized that the strategy seeks to build “the Latam of the future: an increasingly digital, efficient and scalable group, supported by unique strategic assets that allow us to have a solid, sustainable and long-term business model. Our financial discipline and continuous cost improvement are key pillars for competitiveness.”
Regarding development plans, Bottas detailed that an investment of US$ 1.7 billion is projected in 2026 and a similar amount in 2027, figures that are added to the US$ 1.5 billion disbursed in 2025.
Specifically, the executives explained that a relevant part of this plan is based on the growth and modernization of the fleet. By the end of 2025 they expect to receive 26 aircraft, another 41 ships will arrive in 2026 and another 27 aircraft in 2027, which will allow them to have 371 aircraft this year and end 2027 with 422, in addition to maintaining an average age of the fleet at 12 years or less.
“We are focused on improving the characteristics of our premium service (…) The demand exists and this differentiation of attributes continues to be attractive for a rising middle and wealthy class in South America,” said Alfonsín.
Premium segment
Another key point is to increase revenue in high-margin services.
Thus, Ramiro Alfonsín indicated that “we are focused on creating and improving the characteristics or attributes of our premium service, we have focused much more on that (…) because we believe that the demand exists and this differentiation of attributes continues to be attractive for a rising middle and wealthy class in South America.”
Revenue from the firm’s high-end segment has more than doubled since 2019, going from US$1.5 billion to US$3.3 billion in 2025 and growing at a faster rate than the group’s total revenue.
In the words of Alfonsín, “this success is based on a unique value proposition in the region, where 100% of flights have premium seats and investments have been made to continue improving the travel experience.”
According to his projections, the airline’s premium seat offering will grow 7% annually in the next four years, so – in his words – “a fundamental pillar of this approach is the value proposition to the group’s premium passengers, which has been significantly strengthened.”
In addition to this focus on the most select passenger, the airline reaffirmed its strategic investment to improve the experience. This includes the renovation of its cabins (Business, Premium Economy and Economy) and the addition of services such as Lounges and Wi-Fi on board. In addition, as an important part of its plan, the group announced the new Premium Comfort class for 2027, which will offer 50% more space.
In addition, the airline continues to strengthen its Latam Pass program, which today already has more than 53 million members, facilitates the exchange of approximately 30 thousand seats daily and maintains more than 100 commercial alliances.
Looking ahead to 2027
Latam established its operational and financial aspirations for 2027 during the meeting. Along these lines, the group’s CFO said that it aims to achieve capacity growth (ASK) in the mid-to-high single digit range and maintain or expand its adjusted Ebitda margin, compared to 2026.
Furthermore, Bottas stated that these objectives are complemented by a return on invested capital of more than 20% and a cash flow generation of more than US$1.8 billion. He added that the group will focus on maintaining liquidity of between 21% and 25% of sales over the last 12 months.
