LATAM Airlines shares surge 6.3% on Brazil election

Shares of LATAM Airlines gained 6.30% on Monday, October 5, 2026. The move made it the top-performing stock in the MSCI index during the session.

Guillermo Araya, head of research at Renta 4, attributed the market advance primarily to the outcome of Brazil's presidential election on Sunday, October 4. Opposition candidate Flávio Bolsonaro secured the first majority with 47% of the vote, ahead of incumbent President Lula da Silva, who took 45%. Both candidates will face a runoff election on October 25.

Ignacio Sobarzo, an analyst at Bci Corredor de Bolsa, noted that roughly 40% of the carrier's Ebitda comes from operations and the domestic market in Brazil. Rodrigo Godoy, head of equity research at Credicorp, indicated that lower fiscal risk in Brazil could ease pressure on interest rates and the Brazilian real, boosting consumer purchasing power. Godoy also pointed out that an administration under Bolsonaro could review tax policies that weigh on the commercial aviation industry.

The company also received support from Fitch Ratings. The credit agency recently upgraded LATAM Airlines' long-term foreign-currency issuer default rating to 'BB+' from 'BB', with a stable outlook.