Slides
Page 1
November 17, 2025 Results Presentation Third quarter 2025
Page 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. 2
Page 3
• LATAM executed its second share repurchase program for a total of US$433 million, demonstrating the group’s disciplined approach to capital allocation. • Maintaining a strong balance sheet and liquidity levels. 3 LATAM group continues growing profitably alongside key milestones and major deal • Transported over 22.9 million passengers hand in hand with 9.3% capacity growth (ASK) YoY. Consolidated load factor reached 85.4%, +0.5pp vs 3Q-24. • Passenger unit revenue increased 8.4% while maintaining unit costs broadly stable. • Adjusted operating margin reached 18.1% while adjusted EBITDAR totaled US$1,150 million. Net income came in at US$379 million. Operational and financial performance Capital allocation framework advancements • Announced the acquisition of up to 74 Embraer aircraft to boost connectivity in South America. • Order includes 24 firm deliveries and 50 purchase options. Embraer deal announcement
Page 4
Lower fuel consumption per seat, 30% compared to previous-generation models Acquisition of up to 74 Embraer narrow body aircraft: 24 firm orders to be received between 4Q 2026 and 2027. 50 purchase options to be received between 2027 and 2030. Recently announced a plan to boost connectivity in South America with the Embraer E195-E2 Opportunity to add up to 35 new destinations 4 LATAM's total order book of almost 150 aircraft 8 44 24 71 7 41 24 56 1 3 15 Narrow Body Wide Body 2025 2026 2027 2028-2030 Includes the delivery of 12 Embraer in 2026 and another 12 in 2027 To be delivered 4Q-25
Page 5
ASK (billion) Load Factor (%) Passengers (million) PRASK (US$ 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. Passenger RASKs (PRASK) presented are calculated based on accounting revenues (tickets flown) by business unit. 40.7 44.5 3Q-24 3Q-25 12.2 13.8 3Q-24 3Q-25 6.9 6.7 3Q-24 3Q-25 21.6 24.0 3Q-24 3Q-25 21.1 22.9 3Q-24 3Q-25 9.0 10.4 3Q-24 3Q-25 7.9 7.8 3Q-25 3Q-24 4.2 4.7 3Q-24 3Q-25 +9.3% +12.3% (2.1)% +11.3% +8.3% +15.2% (0.8)% +10.7% 7.0 7.6 3Q-24 3Q-25 7.3 8.4 3Q-24 3Q-25 7.7 9.1 3Q-24 3Q-25 6.6 6.8 3Q-24 3Q-25 +8.4% +14.3% USD +18.9% BRL +17.8% USD +18.9% Local Currency +1.9% 84.9% 85.4% 3Q-24 3Q-25 83.9% 86.1% 3Q-24 3Q-25 82.9% 85.0% 3Q-24 3Q-25 86.1% 85.2% 3Q-24 3Q-25 +0,5pp +2,2pp +2,2pp (0.9)pp Focused execution and customer preference drive PRASK increase 5
Page 6
Advancing initiatives aimed at enhanced service across key passenger touchpoints LATAM will roll out its new Premium Comfort class in 2027, enhancing the long-haul experience 6 Launched the new Lima Signature Lounge at the recently inaugurated Jorge Chávez International Airport, one of LATAM group’s main hubs. Inaugurated New Lima Lounge Introducing Premium Comfort Class Air Cargo Airline of the Year 2025 Only South American airline to win in any category APEX Five-Star Global Airline 2026 Recognized for the fourth consecutive year as a Five-Star Global Airline
Page 7
LATAM expanded adj. operating margin to 18.1%, as the group continued to perform well with a stable macroeconomic backdrop 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. 7 Income Statement (US$ million) 3Q-2025 3Q-2024 Change Revenues 3,856 3,287 +17.3% Passenger 3,394 2,865 +18.5% Cargo 404 381 +6.3% Total Adjusted Expenses (3,159) (2,827) +11.7% Adjusted Costs ex-fuel (2,183) (1,804) +21.0% Fuel Costs (976) (1,023) (4.7)% Adj. EBITDAR Margin 29.8% 25.2% +4.6 p.p Adj. Operating Margin 18.1% 14.0% +4.1 p.p Net Income Margin 9.8% 9.2% +0.7 p.p Adj. EBITDAR Net income US$1,150 million US$379 million + 38.9% vs 3Q 2024 + 25.8% vs 3Q 2024 Adj. operating income US$698 million + 51.6% vs 3Q 2024
Page 8
Adjusted figures exclude other gains and losses, expenses related to the Corporate Incentive Plan and variable Aircraft Rental expenses (non-cash P&L effect). Adjusted Passenger CASK ex Fuel also exclude costs associated with belly and freighter operations. 8 Consistently improving adj. operating margin while containing costs Adj. Operating Margin 7.1% 11.3% 12.7% 15.5% 18.1% 2019 2023 2024 LTM 3Q25 3Q25 Adj. Passenger CASK ex-fuel (US$ cents) 4.2 4.3 4.2 4.3 4.4 2019 2023 2024 LTM 3Q25 3Q 2025
Page 9
9 Positive net cash generation of US$380 million in the quarter before second share repurchase execution Adj. Cash Flow 3Q 2025 (US$ million) 2,069 859 (382) (52) (44) 2,449 (433) 2,016 Initial Cash 3Q 2025 Adj. Operating Cash Flow CapEx Net of Financing Financial Interest Expense Adj. Financial Amortization & others Cash Before Share Repurchase Share Repurchase Ending Cash 3Q 2025 (53) +380 Note:CapEx Net of Financing corresponds to CapEx for maintenance and growth & fleet CapEx Net of Financing. Adj. Financial amortization includes, finance lease amortization, non-fleet financial debt amortization and others.
Page 10
1,100 1,575 1,575 1,714 1,958 2,016 2,814 3,533 3,591 23.9% 27.1% 25.8% Liquidity Cash and equivalentsRCF 2023 2024 3Q25 Liquidity 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. Adjusted Net Leverage is calculated as our Adjusted Net Debt divided by Adjusted EBITDAR for the last twelve months. 10 LATAM maintains balance sheet metrics aligned with financial policy target ranges 2.1x 1.7x 1.5x 2023 2024 3Q25 Liquidity (US$ million) Adjusted Net Leverage (times) Financial Policy Target <2.0x Financial Policy Range 25% 21%
Page 11
11 Indicator Guidance 2025E (July28th) Updated 2025E (November 14th) Operating Indicators Total ASK Growth vs 2024 8.5 % - 9.5% 8.0 % - 8.5% Domestic Brazil ASK Growth vs 2024 9.5 % - 10.5% 10.0 % - 10.5% Domestic Spanish Speaking Countries ASK Growth vs 2024 1.0 % - 2.0% (0.5) % - 0.0% International ASK Growth vs 2024 10.0 % - 11.0% 10.0 % - 10.5% Total ATK Growth vs 2024 2.5 % - 3.5% 3.5 % - 4.0% Financial Indicators Revenues (US$ billion) 14.0 - 14.2 14.4 - 14.5 Adjusted CASK ex fuel1 (US$ cents) 4.65 - 4.75 4.85 - 4.90 Adjusted Passenger CASK ex fuel1 (US$ cents) 4.25 - 4.35 4.35 - 4.40 Adjusted Operating Income2 (US$ billion) 2.00 - 2.15 2.30 - 2.40 Adjusted Operating Margin2 14.0 % - 15.0% 16.0 % - 16.5% Adjusted EBITDAR2 (US$ billion) 3.65 - 3.85 4.00 - 4.10 Adjusted EBITDAR Margin2 26.0 % - 27.0% 28.0 % - 28.5% Adjusted Levered Free Cash Flow3 (US$ billion) >1.3 >1.5 Liquidity4 (US$ billion) >4.0 >4.0 Total Net Debt5 (US$ billion) <5.4 <5.5 Total Net Debt/Adjusted EBITDAR (x) ≤1.5x ≤1.4x LATAM group updates its guidance for the full year 2025 The assumptions include an average exchange rate of 5.6 BRL to the US dollar and a jet fuel price of US$90 per barrel. For the full version of the updated guidance, please refer to the Earnings Release document, where a detailed description of the indicators is provided.
Page 12
Third quarter 2025 takeaways 12 1. Strong operational performance: Sustained operational results supported by strong customer preference, on top of a healthy demand environment that resulted in increasing unit revenues across all segments. 2. Investments to enhance the LATAM experience: Announcement of an agreement with Embraer to continue expanding LATAM group’s reach within South America, alongside other initiatives aimed at further enhancing the customer experience. 3. Margin expansion and healthy bottom line results: Adjusted operating margin reached 18.1% while adjusted EBITDA totaled US$ 1,150 million. Net income came in at US$379 million, even after negative one-time liability management impact. Year-to-date net income stands at US$976 million. 4. Solid cash generation: Year-to date, LATAM has generated more than US$930 million in cash, prior to share repurchases for a total amount of US$585 million and separately, dividend payments that amounted to US$293 million. 5. 2025 guidance update: Updating 2025 guidance, with a projected adj. EBITDAR range between US$4.00 billion and US$4.10 billion and adj. operating margin between 16.0% and 16.5%.
Page 13
INVESTOR DAY December 9, 2025
Page 14
November 17, 2025 Results Presentation Third quarter 2025