LATAM Airlines Group S.A. Q4 FY2025 earnings call

• 2025 was a year of continuous consolidation and delivery with strong results. • Group achieved record Net Promoter Score of 54 points, Organizational Health Index 83 points. • Transported over 87 million passengers in 2025, including 23 million in 4Q. • Capacity increased 8.2% full year and 7.7% in 4Q with load factor 84.4%. • Received 26 aircraft in 2025, total fleet 371. Launched 22 new routes. • Adjusted operating margin 16.2% for year, adjusted EBITDAR almost $4.1 billion, net income $1.5 billion. • In 4Q, total revenues up 16.3% y-o-y, adjusted EBITDAR up 30.4% y-o-y, adjusted operating income up 42.7% y-o-y, net income up 78.1% y-o-y. • Focus on premium segment with renewed business class, signature check-in, future enhancements like Wi-Fi and new premium comfort cabin. • LATAM PASS program with almost 54 million members, accounting for nearly 60% of passenger revenues.

Total revenues in 4Q 2025 reached almost $4 billion, up 16.3% y-o-y. Passenger segment revenues rose 20.3%, while cargo revenues declined 9.6% but full year cargo revenues increased y-o-y. Adjusted EBITDAR was $1.1 billion, up 30.4% y-o-y. Adjusted operating income was $661 million, up 42.7% y-o-y. Net income was $484 million, up 78.1% y-o-y. Passenger CASK ex-fuel was $0.047 in 4Q, with full year at $0.044. Passenger RASK increased 11.7%. In LATAM Airlines Brazil, domestic capacity expanded 12% with load factors up 0.7 percentage points and passenger RASK growth 14% in USD and 10% in local currency. In domestic Spanish-speaking affiliate markets, passenger RASK grew 23% in dollars and nearly 20% in local currency. International segment capacity and passenger volumes grew at high single-digit pace, load factor at 85%, unit revenues up 6%. Premium revenues accounted for 23% of passenger revenues in full year 2025, growing 14% while overall passenger revenues grew 12%.

• 2026 expected to be another year of continued profitable growth. • Capacity projected to grow between 8% and 10%, adjusted operating margin between 15% and 17%. • Adjusted levered free cash flow expected to exceed $1.7 billion. • Liquidity expected above $5 billion by end of 2026. • CapEx plan for 2026 net of financing about $1.7 billion, expecting to receive 41 aircraft including 3 wide-bodies and 12 Embraer E2s.

Q: On yields, how are yields tracking across regions and evolution of booking curve and demand environment?

A: Roberto Alvo said strong and stable demand over all business areas, domestic Chile a bit slower last quarter 2025 but recovery in early 2026, booking curve for early 2026 healthy, all segments performing well.

Q: On dollar impact, is a weaker dollar better?

A: Roberto Alvo said stronger local currency is more positive as most revenue in local currency and significant cost in dollar, net positive for balance.

Q: On 2026 CapEx, details?

A: Ricardo Dourado said expecting to receive 41 aircraft, CapEx $1.7 billion net of financing, with investments in cabin retrofit, renovation, new premium content.

Q: On net debt above guidance, why?

A: Ricardo Dourado said difference due to distribution of $400 million dividend before guidance disclosure.

Q: On E2s deployment, plan?

A: Roberto Alvo said first 12 E2s deployed in Brazil domestic, based out of hubs, for new destinations and increased frequencies.

Q: On 2026 costs, one-offs vs structural?

A: Ricardo Dourado said 4Q costs had 0.2 from weak dollar and 0.2 one-offs, guidance for 2026 well aligned with no structural issues.

Q: On cargo yields 2026, outlook?

A: Roberto Alvo said no significant issues seen, mix may change due to currency but no material concerns.

Q: On premium revenues 2026 target, A: Roberto Alvo said premium revenue will still grow faster than total revenue and capacity.

Q: On corporate side and premium growth, A: Roberto Alvo said corporate demand recovered, gaining market share, LATAM strong in premium with people-driven approach.

Q: On net debt and currency breakdown of debt?

A: Roberto Alvo said $400 million dividend advanced in December, Ricardo Dourado said almost 100% of debt in U.S. dollar with one local bond close to $160 million