LATAM Airlines Slides as Brazil Election Shock Adds to Fuel-Cost Worries

LATAM Airlines Group S.A. (LTM) is down 7.8% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver is a broad selloff tied to Brazil after Luiz Inacio Lula da Silva’s reelection triggered sharp weakness in Brazilian-linked assets, with LATAM caught in that move because Brazil is one of its key markets. The drop may also reflect existing investor caution after management recently signaled capacity growth is tracking toward the low end of guidance because jet fuel remains expensive.

Details:

Brazil-exposed Chilean stocks fell at the open on October 26, and LATAM was among the biggest decliners in Santiago as investors cut positions linked to Brazil.

LATAM’s September operating update was solid, with passenger traffic, capacity, and cargo volumes all higher than a year earlier, so today’s move does not appear tied to weak monthly traffic data.

Management said on October 20 that 2026 capacity growth is trending toward the lower end of its forecast range after supply was trimmed in response to elevated jet fuel prices.

LATAM also said it entered a quiet period on October 20 ahead of third-quarter results scheduled for November 3, which suggests there was no obvious new company-specific catalyst to offset the macro pressure.

Sources:

LATAM Airlines Investor Relations, SEC, BioBioChile

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$LTM Hedge Fund Activity

We have seen 87 institutional investors add shares of $LTM stock to their portfolio, and 91 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

OLYMPUS PEAK ASSET MANAGEMENT LP removed 1,611,473 shares (-77.6%) from their portfolio in Q2 2026, for an estimated $93,900,531
ITAU UNIBANCO HOLDING S.A. removed 1,545,674 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $90,066,423
JANE STREET GROUP, LLC removed 1,464,081 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $85,311,999
ROBECO INSTITUTIONAL ASSET MANAGEMENT B.V. removed 1,038,025 shares (-71.4%) from their portfolio in Q3 2026, for an estimated $51,787,067
NINETY ONE UK LTD added 651,218 shares (+36.1%) to their portfolio in Q3 2026, for an estimated $32,489,266
GHISALLO CAPITAL MANAGEMENT LLC removed 500,000 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $29,135,000
CAISSE DE DEPOT ET PLACEMENT DU QUEBEC removed 466,310 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $27,171,883

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$LTM Price Targets

Multiple analysts have issued price targets for $LTM recently. We have seen 2 analysts offer price targets for $LTM in the last 6 months, with a median target of $70.0.

Here are some recent targets:

Alejandro Demichelis from Jefferies set a target price of $70.0 on 06/18/2026
Guilherme Mendes from JP Morgan set a target price of $70.0 on 06/03/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.