Latam Airlines’ Brazilian unit will reduce planned flying capacity in July by approximately 3% compared with its initial schedules for the month, CEO Jerome Cadier said on Monday. The move follows a comparable capacity reduction that the airline executed in June, and Cadier indicated the adjustments reflect pressure from rising fuel costs.
Speaking at the International Air Transport Association annual general meeting in Rio de Janeiro, Cadier said the carrier expects these kinds of capacity adjustments to continue into the third quarter. He framed the changes as a more cautious approach to expanding supply amid a higher fuel cost environment.
Even with the recent pullbacks, the company remains on track to expand capacity year-over-year. The cuts come on top of earlier plans that projected an 11% increase in capacity compared with 2025, which means Latam Brasil is still planning growth versus the prior year but at a reduced pace relative to its original blueprint.
Cadier described the airline’s stance on capacity as conservative, noting the company is tempering earlier expansion plans in response to operating cost pressures. He also said the airline intends to unveil new E2 routes in July, a planned network addition that remains on the calendar despite the more measured capacity increases.
On the company’s financial outlook, Cadier told attendees there is no reason to change the guidance Latam provided to the market at the end of the first quarter. That suggests management currently views the capacity adjustments as operational fine-tuning rather than a trigger for revised guidance.
The pattern of modest, targeted cuts combined with retained guidance indicates Latam Brasil is attempting to balance unit growth against rising input costs, particularly jet fuel, while preserving the company’s previously communicated expectations to investors.
Market context within the company
- July capacity cut: approximately 3% from original plans.
- June experienced a similar reduction.
- Company still projects year-over-year capacity growth relative to 2025 of about 11% before recent adjustments.