LATAM Airlines Q1 Results: I Was Skeptical, But This ~15% FCF Yield Is Too Good To Pass Up (Upgrade)

LATAM Airlines (LTM) receives an upgraded rating post-Q1, driven by strong execution and attractive valuation despite sector headwinds. LTM delivered a robust Q1 with 21% YoY revenue growth, 40%+ adj. operating income growth, and resilient margins despite fuel price volatility. Premium revenue surged 28% YoY, and LTM generated nearly $500M in free cash flow after CapEx and interest, maintaining healthy liquidity and leverage.