LATAM Airlines Group SA · BCS:LTM
LATAM Airlines Group SA — Q2 2024 Earnings Presentation
22 slides from LATAM Airlines Group SA's earnings presentation, August 2024
Slide 1: Corporate Update Second Quarter 2024
Corporate Update Second Quarter 2024 August 2024
Slide 2: Disclaimer
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
Slide 3: LATAM group is the undisputed largest airline group in South America
LATAM group is the undisputed largest airline group in South America One of the world's ten largest airline groups and largest in South America, located in one of the LATAM group is a world's best performing and fastest growing aviation regions. leading airlines in South LATAM group is the only Sout
Slide 4: LATAM group has an unparalleled and expansive network
LATAM group has an unparalleled and expansive network 146 Destinations 8 Europe + Commercial agreements with 12 North/ 57 airlines Central America + Codeshare agreements with 27 airlines 122 Lima South America Sao Paulo Santiago 3 1 Oceania Africa (1) Destinations information as of June 30, 2024, an
Slide 5: LATAM is the unquestioned leading group in South America
LATAM is the unquestioned leading group in South America Passengers Transported in LTM Q2 2024 (millions) >2x 79.2 36.0 30.3 29.5 13.2 1 1 Source: Companies filings 1. Azul and GOL updated up to 1Q-24 5
Slide 6: LATAM group is more important to the South American region than any other full service carrier
LATAM group is more important to the South American region than any other full service, global carrier in its home market Q2 2024 Regional Market Share1 >2x 42% 18% 17% 9% 10% 3 4 (Intra-South America) 2 (Intra-North America) (Intra-Middle East) (Intra-Europe) (Intra-Asia Pacific) (1) Source: Diio.n
Slide 7: LATAM group affiliates are leaders in their domestic markets
LATAM group affiliates are leaders in their domestic markets and continued to gain market share in 2Q-24 Domestic Affiliates Market Shares Q2 2023 vs Q2 2024 Airlines Brazil Airlines Chile Airlines Peru Airlines Colombia Airlines Ecuador 1 1 1 # 2 # 2 40% 62% 65% 28% 45% # # # 38% 57% 61% 33% 40% Ma
Slide 8: Leading passenger airline group connecting South America to the world
Leading passenger airline group connecting South America to the world through a unique network International Capacity Shares Q2 2023 vs Q2 2024 Within South South America - South America - South America - America North America Oceania/ Asia Pacific Europe # 1 #1 #1 42% 23% 80% 17% 43% 19% 72% 17% Ma
Slide 9: Joint Venture Agreement
Joint Venture Agreement Capacity share1 Q2 2023 Q2 2024 # 1 • Access to more than 300 destinations between the 32% 39% US/Canada and South America. • First profit sharing agreement between North American and South American carriers. New route launched this quarter • In February 2024, the inclusion o
Slide 10: South America is an underpenetrated aviation market
South America is an underpenetrated aviation market Passenger Growth (CAGR 2025E – 2031E) 2019 Trips per Capita ~1,000 million trips upside 2.8 5.0% 2.0 2.5% 2.1% 0.5 South America Western Europe 1 North America South America Western Europe 1 North America Source :Airbus Global Market Forecast, Worl
Slide 11: LATAM group continues investing in its clients, receiving record high performance results
LATAM group continues investing in its clients, receiving record high performance results Customer satisfaction (NPS): Passenger operations (points) 2024 Best Airline in South America 54 48 50 2024 Best 2024 Five Sustainability Star Global 33 Onboard Airline 2019 2023 Q1-24 Q2-24 Highest NPS Premium
Slide 12: LATAM group has diversified revenue streams
LATAM group has diversified revenue streams, providing higher exposure to stable currencies and mitigating financial risks LTM Revenues by Business LTM Passengers Revenues by Segment (% of LTM revenues) (% of LTM revenues) Domestic SSC; 19% Other; 1% International; 47% Cargo; 11% Passengers; 87% Dom
Slide 13: 1H-24 with strong growth and healthy load factors
LATAM group reported a 1H-24 with strong growth and healthy load factors in its operations, delivering a solid financial performance Operational performance (1H-24) Financial results (1H-24) 39.4 million Net income Total passengers US$405 million +15.5% vs.1H-23 +53% vs. 1H-23 Revenues +24.9% US$6,3
Slide 14: LATAM group's unit cost advantage continues to grow vs other carriers
LATAM group's unit cost advantage continues to grow vs other carriers Adj. CASK ex-fuel LATAM evolution Global Full Service Carriers CASK ex-fuel evolution +1.4¢ / +20.9% Passenger CASK Ex-fuel Cargo CASK Ex-fuel 8.1¢ +0.3¢ / +6.7% 6.7¢ 4.8¢ 4.5¢ 0.3¢ 0.6¢ 4.2¢ 4.2¢ 2019 LTM Q2 2024 2019 LTM Q2 2024
Slide 15: LATAM has a conservative, leading Balance Sheet
LATAM has a conservative, leading Balance Sheet Adj. Net Leverage as of 2Q-24 3 Liquidity as a % of 27.1% 26.9% 11.9% 27.4% 18.2% 14.4%1 22.0% LTM Revenue 2 5.0 4.3 3.3 2.6 2.1 1.9 0.6 Copa LATAM Delta United Avianca Azul American Source: Companies filings. 1. Azul updated up to 1Q-24. 2.Liquidity i
Slide 16: Opportunity to refinance emergence debt in 4Q-24
Opportunity to refinance LATAM Airlines Group S.A. emergence debt in 4Q-24 is expected to increase earnings Emergence debt coupon vs current trading yield1 Emergence debt coupon vs current trading yield (%) (US$ million) LTM 2Q-24 Over US$2.2 billion of high-cost emergence debt available for refinan
Slide 17: Ownership structure changed after July's relisting and secondary offering
LATAM Airlines Group S.A. ownership structure changed after July's relisting and secondary offering1 LATAM relisted on the New York Stock Exchange on July 25th, Sixth Street Partners; 24.5% alongside a secondary offering of 19,000,000 ADSs (with ratio 2,000 Strategic Value Partners; 14.0% shares to
Slide 18: Takeaways
Takeaways Unique Value LATAM group is the leading airline group in South America and a global player. Its 1 Proposition unparalleled network, its unique value proposition and its commitment to sustainability are the key drivers to its success. LATAM group affiliates have increased or maintained mark
Slide 19: Corporate Update Second Quarter 2024
Corporate Update Second Quarter 2024 August 2024
Slide 20: Strong capacity growth along with healthy demand has led to an increase in the load factor
Strong capacity growth along with healthy demand has led to an increase in the load factor ASK (billion) Load Factor (%) Passengers (million) RASK (US$ cent) 37.7 32.5 80.4% 82.2% 17.1 19.1 7.0 Consolidated +16.2% +1,8pp +11.7% 6.9 -1.6% 77.3% 79.8% 7.7 8.1 Domestic Brazil 10.7 11.5 7.3 7.5 +3.2% US
Slide 21: LATAM reports a net income of US$146 million in Q2-24
LATAM group reports a net income of US$146 million in Q2-24 driven by healthy operational growth and contained costs Capacity (ASK) Adj. Pax CASK ex-fuel Adj. EBITDAR (US$) 37.7Bn +16.2% 4.1 cents -4.7% 619 Mn +10.7% vs.Q2-23 vs.Q2-23 vs.Q2-23 P&L (US$ million) Q2-24 Q2-23 Change Revenues 3,030 2,67
Slide 22: Significantly lower cost base vs global full-service carrier peers
Significantly lower cost base vs global full-service carrier peers LTM Q2 2024 Adj. CASK ex-fuel Passenger CASK Ex-fuel Cargo CASK Ex-fuel 10.1¢ 9.5¢ Average: 8.1¢ 8.5¢ 7.9¢ 6.6¢ 6.2¢ 4.8¢ 0.6¢ 4.2¢ LATAM IAG Air France - KLM United American Delta Lufthansa Source: Companies filings 22