en.Wedoany.com Reported - LATAM Airlines is investing approximately $100 million to introduce a new premium economy product, "Premium Comfort," on its Boeing 787 fleet, expected to launch in the first half of 2027. In the previous fiscal year, the airline achieved an operating margin of 16.2%, compared to the International Air Transport Association (IATA) reported average of 7.2%.

LATAM's entry into long-haul premium economy is part of its premiumization strategy. The airline had previously announced the launch of a new business class product. In recent years, global demand for premium travel has surged, but the South American region has seen lower levels of premiumization. Over the past decade, the number of widebody aircraft equipped with premium economy has steadily increased, particularly among North American and European airlines. As LATAM expands its transatlantic network, the commercial rationale for the new cabin class becomes increasingly compelling. Paulo Miranda, Vice President of Customers at LATAM Airlines Group, stated that Premium Comfort reflects a deep understanding of customer needs, offering a product that combines comfort, space, high-level service, and exceptional value.

The new cabin features RECARO PL3530 seats with 40 inches (101.6 cm) of seat pitch and 8 inches (20.3 cm) of recline. The entertainment system includes 16-inch 4K screens, supporting Bluetooth connectivity and fast-charging USB-C ports. Each seat is equipped with an independent power outlet. The in-flight experience will be enhanced through carefully curated dining options and personalized service.

The new cabin design was co-created by London-based design consultancy PriestmanGoode, which has collaborated with multiple airlines including Riyadh Air and SWISS. The design concept celebrates South America's culture, colors, and landscapes, with colors drawn from natural mineral tones and forms echoing dune and mountain terrains. Maria Kafel-Bentkowska, Associate Director of CMF at PriestmanGoode, stated that the design is based on a shared commitment between LATAM and PriestmanGoode to use the most environmentally friendly materials.

LATAM is also investing in a new business class product, featuring Recaro R7 "mini-suite" seats with sliding privacy doors. This product entered service last year. A total of 24 out of 40 Boeing 787s are undergoing retrofitting, including 10 Boeing 787-8s and 14 Boeing 787-9s. The full retrofit is expected to be completed in the second half of 2026. This seat investment is part of a $360 million retrofit program that also includes standard economy class. The airline is also investing in Viasat in-flight internet connectivity and improved in-flight entertainment systems, drawing inspiration from strategic partner Delta Air Lines, aiming to make IFE an integral part of the customer journey.

In the last full fiscal year, LATAM's profit grew nearly 50% year-over-year to $1.5 billion. In the first quarter of 2026, the airline's profit increased 62.1% compared to the same period last year, with revenue up 21.7% and an operating margin of 19.8%. First-quarter total operating revenue was $4.15 billion, passenger revenue was $3.66 billion, adjusted EBITDA was $1.31 billion, and net profit was $576 million. In 2026, the airline launched several new long-haul routes, including flights from São Paulo Guarulhos International Airport (GRU) to Amsterdam Schiphol Airport (AMS) and Brussels Airport (BRU), as well as a route connecting São Paulo and Cape Town International Airport (CPT).

By the end of 2026, a total of 40 new aircraft will join the LATAM fleet, bringing the fleet size to 410 aircraft. By the end of this decade, an additional 130 next-generation aircraft are expected to join. Deliveries include A320neo, A321neo, and Boeing 787-9 aircraft, as well as two new types: the Embraer E195-E2 and the Airbus A321XLR. Sebastián Acuto, Vice President of Fleet and Projects at LATAM, stated that fleet renewal enables the group to grow more efficiently and meet regional connectivity needs. The airline has firm orders for 24 E195-E2s, plus 50 options and 13 A321XLRs. The first Embraer aircraft will be deployed on the Brazilian domestic market. The deployment of the XLR is uncertain; the model was initially planned to operate from Lima's Jorge Chávez International Airport (LIM) but may be deployed elsewhere, such as Fortaleza's Pinto Martins International Airport (FOR), on transatlantic routes.