Slides
Page 1
April 29, 2025 Results Presentation First Quarter 2025
Page 2
2 Disclaimer Neither the United States Securities and Exchange Commission (“SEC”) nor the Chilean Comisión para el Mercado Financiero (the “CMF”) nor any securities commission of any other U.S. or non-U.S. jurisdiction has reviewed, approved or disapproved of this Presentation, or determined that this Presentation is truthful or complete. No representations or warranties, express or implied, are given in, or in respect of, this Presentation. To the fullest extent permitted by law in no circumstances will LATAM or any of its respective subsidiaries, shareholders, affiliates, representatives, directors, officers, employees, advisers or agents be responsible or liable for a direct, indirect or consequential loss or loss of profit arising from the use of this Presentation, its contents, its omissions, reliance on the information contained within it, or on opinions communicated in relation thereto or otherwise arising in connection therewith. Industry and market data used in this Presentation have been obtained from public filings from industry competitors, third-party industry publications and sources as well as from research reports prepared for other purposes. LATAM has not independently verified the data obtained from these sources and cannot assure you of the data’s accuracy or completeness. This data is subject to change. In addition, this Presentation does not purport to be all-inclusive or to contain all of the information that may be required to make a full analysis of LATAM. Viewers of this Presentation should read the same in full together with the Company’s SEC filings indicated herein and each make their own evaluation of LATAM and of the relevance and adequacy of the information taken as a whole and should make such other investigations as they deem necessary. Note on forward-looking assumptions, outlooks and expectations are not facts but rather a good faith estimate of reality based on selected information believed to be reasonable. However, reality may differ from assumptions, outlooks and expectations. This report also contains forward-looking statements. Such statements may contain words such as “could,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “believe” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on LATAM's current plans, estimates and projections and, therefore, you should not place undue reliance on such statements or the estimates arising from them. Forward-looking statements involve known and unknown inherent risks, uncertainties and other factors, many of which are beyond LATAM's control and are difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. The financial information contained herein does not constitute or replace in any way the submission of the corresponding financial statements of the Commission for the Financial Market (CMF) and the market, in terms of their content requirements, applicable procedures and deadlines of submission corresponding to the CMF in accordance with current regulations. These factors and uncertainties include in particular those described in documents we have filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update any of them, whether as a result of new information, future events or any other factor. Our results may not be indicative of future performance, which remains subject to a number of uncertainties, including the risks disclosed in our annual report on Form 20-F, which was filed on March 13, 2025, and especially the risks and uncertainties associated with global developments, including the conflicts in the Middle East, the more recent country-specific tariffs imposed by the U.S. Commerce Department for goods imported in the United States and the retaliatory measures imposed in response by certain countries, and its impact on the currency exchanges, the worldwide supply chain and the availability of inventory and the prices of goods in general in commerce. In addition, as disclosed in our annual report on Form 20-F, our business is seasonal and our passenger revenues are generally higher in the first and fourth quarters of each year, during the southern hemisphere’s spring and summer. Finally, demand for air travel and cargo services is influenced by a number of factors beyond our control, including global, regional and national political and socioeconomic developments as well as changes in our competitive landscape, all of which could have a material impact on our ability to achieve the guidance disclosed herein. Use of Non-GAAP Financial Metrics and Other Key Financial Metrics This Presentation includes certain non-IFRS financial measures such as EBIT (which consists of earnings for the period before income taxes and financial costs and financial income), EBITDA (which consists of earnings for the period before income taxes and financial costs and financial income, plus depreciation and amortization expense) and EBITDAR (which consists of earnings for the period before income taxes and financial costs and financial income, plus depreciation and amortization expenses and rentals expenses). In addition EBIT margin which is calculated by dividing EBIT by total operating revenue) These non-IFRS measures are an addition to, and not substitute for or superior to, measures of financial performance prepared in accordance with an IFRS alternative to net income or any other measures derived in accordance with IFRS. LATAM believes that these non-IFRS measures of financial results provide useful supplemental information to investors about LATAM. LATAM’s non-IFRS measures may not be directly comparable to similarly titled measures of other companies.
Page 3
3 LATAM group begins 2025 with strong results, reaffirming operational and financial resilience Strong operational performance Solid financial results Looking to the future • Transported over 21 million passengers. • 7.3% capacity growth (ASK) vs 1Q-24. • Consolidated load factor remained healthy at 83.3%. • Customer satisfaction (NPS) reached 56 points, highest in LATAM group’s history. • Almost US$450 million allocated to shareholder return initiatives (dividend and share repurchases). • Well-diversified network providing flexibility and scale. • Incorporation of Argentina to the scope of the JVA with Delta Air Lines. • Raising 2025 guidance: 13% – 15% in adjusted operating margin and US$3.40–3.75 billion in adjusted EBITDAR. • 16.8% 1Q-25 adjusted operating margin, +2.9pp vs 1Q-24. • Adjusted EBITDAR of US$962 million (+20.9% YoY). • Net income of US$355 million, up 37.6% YoY. • Strong capital structure with US$3.7 billion in liquidity and 1.5x adjusted net leverage.
Page 4
ASK (billion) Load Factor (%) Passengers (million) RASK (US$ cent) Consolidated Domestic Brazil Domestic SSC International Note: Domestic SSC refers to domestic operations of LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru, Domestic Brazil refers to LATAM Airlines Brazil domestic operations and International refers to international operations of LATAM Airlines Brazil, LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru. RASKs presented are calculated based on accounting revenues (tickets flown) by business unit. 38.5 41.3 1Q-24 1Q-25 11.9 12.4 1Q-24 1Q-25 7.2 7.3 1Q-24 1Q-25 19.5 21.5 1Q-24 1Q-25 20.2 21.0 1Q-24 1Q-25 8.5 8.8 1Q-24 1Q-25 7.9 7.9 1Q-24 1Q-25 3.9 4.3 1Q-24 1Q-25 4 +7.3% +4.7% +2.2% +10.7% +3.6% +2.9% +0.6% +11.4% 7.5 7.1 1Q-24 1Q-25 8.4 7.3 1Q-24 1Q-25 7.4 7.9 1Q-24 1Q-25 7.0 6.8 1Q-24 1Q-25 -5.3% -12.4% USD +3.9% BRL +6.5% USD +11.0% Local Currency -4.1% 84.4% 83.3% 1Q-24 1Q-25 80.9% 80.8% 1Q-24 1Q-25 82.6% 82.9% 1Q-24 1Q-25 87.2% 85.0% 1Q-24 1Q-25 -1,1pp -0,1pp 0,2pp -2,2pp Solid capacity growth with sustained demand and healthy load factors
Page 5
Revamped LATAM Pass — more options for earning and redeeming miles, and greater ease of access to Elite Status. Modernization of fleet through retrofit1 : Customer satisfaction reaches new highs, supported by product and service investments Customer satisfaction (NPS): Passenger operations (points) 48 51 56 2023 2024 1Q25 Premium travelers (points) 54 56 61 2023 2024 1Q25 (1): Percentage of implementation of the fleet included in the project. Does not consider new fleet incorporated already including the new configurations. (2): Premium travelers includes: LATAM Pass Elite program members (Gold, Gold plus, Platinum, Black and Black signature) + Passengers in premium and business cabins. 2 Almost 90% of the narrow body fleet with onboard Wi-Fi 100% 61% Narrow body fleet Wide body fleet New Business Class Suites, Lounges and Signature Check-in: 50+ million members
Page 6
6 LATAM group's record operational results drove a historic net income for the first quarter of 2025 Adjusted figures exclude other gains and losses, expenses related to the Corporate Incentive Plan and variable Aircraft Rental expenses (non-cash P&L effect). Adjusted EBITDAR further adjusted to add back the effect of foreign exchange gains and results of indexation units. Net Income corresponds to Net Income attributable to owners of the parent company. Income Statement (US$ million) 1Q-2024 1Q-2025 Change Revenues 3,321 3,411 +2.7% Passengers 2,898 2,943 +1.6% Cargo 369 406 +9.8% Total Adjusted Expenses (2,859) (2,837) (0.7)% Adjusted Costs ex-fuel (1,834) (1,863) +1.6% Fuel Costs (1,024) (974) (4.9)% Adj. Operating Margin 13.9% 16.8% +2.9 p.p Adj. EBITDAR Margin 24.0% 28.2% +4.3 p.p Net Income Margin 7.8% 10.4% +2.6 p.p Adj. operating income Adj. EBITDAR Net income US$573 million US$962 million US$355 million + 23.9% vs 1Q 2024 + 20.9% vs 1Q 2024 + 37.6% vs 1Q 2024
Page 7
Consistent execution of LATAM group's cost containment strategy reflected in stable unit metrics 7 Adj. Passenger CASK ex Fuel 4.2 4.3 4.2 4.1 2019 2023 2024 LTM 1Q25Adjusted figures exclude other gains and losses, expenses related to the Corporate Incentive Plan and variable Aircraft Rental expenses (non-cash P&L effect). Adjusted Passenger CASK ex Fuel also exclude costs associated with belly and freighter operations. (US$ cents) Digital, data and technology Business simplification Fleet initiatives US$4.0 cents in 1Q25
Page 8
Consistent EBITDAR growth over twelve months driven by efficiency and network strength 8 Last Twelve Months Adj. EBITDAR 2.8 2.8 2.9 3.1 3.322.4% 22.2% 22.6% 23.8% 25.0% 1Q-24 2Q-24 3Q-24 4Q-24 1Q-25 (US$ billion) Adjusted figures exclude other gains and losses, expenses related to the Corporate Incentive Plan and variable Aircraft Rental expenses (non-cash P&L effect).
Page 9
Adj. Cash Flow 1Q 2025 1,958 585 (128) (236) (24) (8) 2,146 Initial Cash 2025 Adj. Operating Cash Flow Maintenance CapExGrowth CapEx Financial Interest Expense Adj. Financial Amortization & others Ending Cash 1Q-25 9 (US$ million) 189 US$189 million net cash generation in 1Q25 supported by lower financing costs post-refinancing Note: Growth CapEx corresponds to CapEx for growth & Fleet CapEx Net of Financing. Adj. Financial amortization includes, finance lease amortization, non-fleet financial debt amortization, statutory dividends and other.
Page 10
Adj. Net Leverage2.1x 1.7x 1.5x 2023 2024 1Q25 Continuous cash generation drives solid liquidity and lowest net leverage on record 10Liquidity is defined as Cash and Cash Equivalents and undrawn, committed revolving credit facilities and does not consider other sources of liquidity such as credit cards and accounts receivable. Credit Rating Upgrades S&P Global Ratings: BB, Stable Outlook Fitch Ratings: BB, Positive Outlook Liquidity (US$ billion) 1,100 1,575 1,575 1,714 1,958 2,146 2,814 3,533 3,72123.9% 27.1% 28.4% Liquidity Cash and equivalentsRCF 2023 2024 1Q25
Page 11
11 Returning almost US$450 million to shareholders through dividends and share repurchase program Dividend distribution • Shareholders' Meeting held on March 24, 2025, approved the dividend distribution paid on April 22, 2025, equivalent to 30% of 2024 net income. Up to 1.6% of subscribed shares US$293 million Share repurchase program • LATAM Airlines Group received shareholder approval for a Share Repurchase Program at an Extraordinary Shareholders' Meeting held on March 17, 2025. • The program is being executed through a pro rata mechanism (OFB, Oferta Firme en Bloque) on the Santiago Stock Exchange. • Offer for up to 9.67 billion shares (1.6% of share capital) equivalent to approximately US$153 million. • It was launched for a 30-day period at a price of CLP$15.02 per share and is set to conclude on April 30, 2025.
Page 12
12 LATAM group raises its guidance for the full year 2025 The assumptions include an average exchange rate of 5.9 BRL to the US dollar and a jet fuel price of US$90 per barrel. For the full version of the updated guidance, please refer to the Earnings Release document, where a detailed description of the indicators is provided. Indicator Guidance 2025E 2025E Updated Operating Indicators Total ASK Growth vs 2024 7% - 9% 7.5% - 9.5% Domestic Brazil ASK Growth vs 2024 6% - 8% 7.0% - 9.0% Domestic Spanish Speaking Countries ASK Growth vs 2024 4% - 6% 2.0% - 4.0% International ASK Growth vs 2024 7% - 9% 9.5% - 11.5% Total ATK Growth vs 2024 2% - 4% 1.0% - 3.0% Financial Indicators Revenues (US$ billion) 14.0 - 14.5 13.8 - 14.2 Adjusted CASK ex fuel1 (US$ cents) 4.6 - 4.8 4.55 - 4.75 Adjusted Passenger CASK ex fuel1 (US$ cents) 4.2 - 4.4 4.15 - 4.35 Adjusted Operating Income2 (US$ billion) 1.65 - 1.90 1.80 - 2.05 Adjusted Operating Margin2 12.0% - 13.5% 13.0% - 15.0% Adjusted EBITDAR2 (US$ billion) 3.25 - 3.60 3.40 - 3.75 Adjusted EBITDAR Margin2 23.5% - 25.0% 24.5% - 26.5% Adjusted Levered Free Cash Flow3 (US$ billion) > 1.0 > 1.2 Liquidity4 (US$ billion) > 3.9 > 4.1 Total Net Debt5 (US$ billion) < 5.4 < 5.2 Total Net Debt/Adjusted EBITDAR (x) ≤ 1.7x ≤ 1.5x
Page 13
Commitment to shareholders Positive future outlook Record profitability Takeaways Over 21 million passengers transported during the quarter with 7.3% year-over-year capacity growth, reflecting both operational agility and sustained demand across our network. US$355 million in net income and US$962 million in adjusted EBITDAR, supported by lower fuel costs and disciplined execution. Double-digit margin from top to bottom line. Best-ever customer satisfaction scores and ongoing investment in fleet and digital services reflect the commitment to the travel experience. Strong cash generation and lower leverage enable the prioritization of returning capital to shareholders, with a US$293 million dividend distribution and the launch of a share repurchase program. LATAM increases its full year 2025 guidance, reflecting increased margin indicators supported by contained costs and stable demand environment. 13 Strong start to the year Customer - centric Strategy
Page 14
April 29, 2025 Results Presentation First Quarter 2025