LATAM Airlines (LTM) Soars 4.31% on Strong Air Traffic Recovery

LATAM Airlines (LTM) shares surged to a record high today, with an intraday gain of 4.31%.

The strategy of buying LTM shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 15.13%, slightly underperforming the market by 1.27 percentage points. With a final value of $2,026.56 for a $1000 investment, the strategy showed the impact of compounded returns over 5 years. However, the performance was somewhat conservative, making it suitable for investors seeking stability rather than high growth.

LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) for May 2025, indicating improved air traffic. This surge in RPK, coupled with a 9.6% increase in May and an 83.1% load factor, has significantly boosted the company's earnings. The improved operational metrics reflect a strong recovery in air travel demand, particularly in Brazil, where domestic growth has been a key driver.

The company's capacity also saw a notable 7.2% increase in May 2025, further contributing to the overall positive trend. Consolidated traffic rose by 9.6%, with an 83.1% load factor, demonstrating efficient utilization of available seats. These operational improvements have positioned LATAM Airlines as a top growth stock, carrying a Zacks Rank #1 due to positive consensus projections. The market's favorable perception of LATAM Airlines' growth prospects has likely contributed to the recent surge in its stock price.