LATAM Strengthens Grip on South American Airfreight Market

Why It Matters

LATAM’s cargo growth diversifies revenue and strengthens its competitive moat in a region where perishable and pharma logistics are rapidly expanding, reshaping the South American air freight landscape.

Key Takeaways

• LATAM holds 30% South American airfreight market share
• Cargo generated $1.7B revenue, 11.4% of total
• Europe‑South America freighter capacity up 25% to 15 weekly flights
• Pharmaceutical shipments rose 43% on CEIV‑certified network
• Moved 250k tonnes flowers, 80k tonnes salmon, 70k tonnes fruit

Pulse Analysis

LATAM Group closed 2025 with a 30 percent share of South America’s airfreight market, moving more than one million tonnes and delivering US$1.7 billion in cargo revenue. That figure represents 11.4 percent of the airline’s total earnings, underscoring how freight has become a core profit pillar for a carrier traditionally known for passenger service. The company’s dual‑fleet strategy—dedicated freighters complemented by belly space in its passenger jets—provides the flexibility needed to capture seasonal spikes in perishable and high‑value goods. Analysts see this diversification as a hedge against volatile passenger demand, especially as the region recovers from pandemic‑induced travel downturns.

A cornerstone of LATAM’s growth was the expansion of its Europe‑South America corridor, now offering 15 weekly freighter frequencies and a 25 percent capacity lift. The route connects major export hubs in Chile, Peru, Colombia and Ecuador with European demand centers, enabling faster delivery of flowers, salmon and fresh fruit that command premium prices in overseas markets. By consolidating the most extensive inter‑continental network between the two continents, LATAM not only strengthens its logistical footprint but also pressures rivals to upgrade their own long‑haul capabilities. The move aligns with broader industry trends toward integrated, end‑to‑end supply‑chain solutions.

Import volumes grew 7 percent year‑on‑year, driven largely by a 43 percent surge in pharmaceutical shipments that now travel across 221 CEIV‑Pharma‑certified routes. This certification signals compliance with stringent temperature‑control and security standards, making LATAM a preferred carrier for life‑saving medicines and biotech products destined for South American markets. The pharma boom reflects rising regional healthcare spending and the need for reliable cold‑chain logistics, a niche where LATAM’s hybrid fleet excels. As competitors scramble to match this service level, LATAM’s early investment in specialized infrastructure positions it to capture a larger share of the high‑margin pharma cargo segment.