LATAM targets 410-jet fleet to cement South American dominance
LATAM Airlines will expand its fleet to a record 410 aircraft by late 2026, a capital-intensive push to capture rising regional demand and open profitable thinner domestic routes.
LATAM Airlines Group closed 2025 with 371 aircraft and plans to add 41 jets this year to reach approximately 410 by December 2026. The scheduled deliveries include seven Airbus A320neos, four A321neos and two Boeing 787-9 Dreamliners in the first half of the year. This expansion will keep the carrier as the largest operator in South America and secure its position among the world's 12 biggest airlines, pushing the fleet roughly 20% above pre-pandemic levels.
The most significant development for capital markets is the second-half 2026 entry of the Embraer E195-E2 on Brazilian domestic routes. This follows an order for up to 74 of the regional jets signed in September 2025. These smaller aircraft allow LATAM to profitably serve thinner domestic markets, a strategy that could drive regional economic integration and boost asset values near newly connected airports. The order provides a clear demand signal for Embraer, which swung to a net income of R$352.5 million in 2024 from a loss of R$185.4 million in 2022.
On the premium front, LATAM is deploying larger, modernized widebodies to capture high-yield traffic. Chief Executive Roberto Alvo noted that "Argentina is fundamental to our network," pointing to the deployment of refurbished Boeing 787s, 777-300ERs and 767s ahead of expected World Cup demand. A $360 million retrofit program fitting 24 787s with South America’s first private business-class suites is due for completion by mid-2026. This is part of a broader $400 million cabin overhaul covering more than 200 aircraft.
The fleet renewal directly supports LATAM's unit costs and its net-zero 2050 target. Next-generation aircraft, projected to reach roughly 200 units or over half the total fleet by 2030, cut emissions by 20% to 25% per seat. Beyond 2026, the carrier expects to take delivery of its first Airbus A321XLR in 2027 to extend narrowbody reach on medium and long-range routes. Network expansion will continue into 2026 with new European destinations including Amsterdam and Brussels.
This growth trajectory faces some regional headwinds. LATAM cancelled Caracas flights on November 23, 2025, following a US FAA security alert, activating a flexibility plan that rerouted passengers through Camilo Daza Airport in Cúcuta, Colombia. Venezuela's civil aeronautics institute subsequently revoked LATAM Colombia's operating permit alongside those of five other foreign carriers. The International Air Transport Association has urged Venezuelan authorities to restore these concessions to prevent further isolation.
