LATAM Airlines S A : 1Q 2026 Results Presentation

About this update from Latam Airlines Group Sa

Results Presentation First Quarter 2026 May 5, 2026 Solid start to the year supported by strong fundamentals Operational performance Financial execution Structural advantages 10.4% capacity growth, transporting almost 23 million passengers. Load factor of 85.3%. Unit revenue increasing 12.7% year-over-year. Received 4 aircraft during the quarter, ending the period with 375 aircraft. 4-star Skytrax rating. Only airline in Latin American history to achieve this important global recognition. Premium revenues grew 28% vs 1Q25, 14% faster than main cabin revenues. Adjusted operating margin reached 19.8%, best quarterly result in history. Adj. EBITDA of US$1.3 billion, a 36.7% increase vs 1Q25. Net income came in at US$576 million, with an EPADS 1 of US$2.01. Liquidity at US$4.1 billion and Adj. Net leverage at 1.3x. Strong and lean balance sheet provides flexibility to navigate external macro and geopolitical challenges. Unique value proposition enabling the capture of premium revenues and more resilient, high-margin demand. Proactive and route-specific revenue management actions and targeted capacity adjustments through strategic allocation of assets. Fuel hedging policy providing partial mitigation. 3 Record operating margin driven by disciplined execution Adj. EBITDA Margin Adj. Operating Margin Net Margin 31.7% +3.5 p.p vs 1Q 2025 19.8% +3.0 p.p. 13.9% +3.5 p.p vs 1Q 2025 vs 1Q 2025 Income Statement (US$ million) 1Q-2026 1Q-2025 Change Revenues 4,151 3,411 +21.7% Passenger 3,661 2,943 +24.4% Cargo 419 406 +3.4% Total Adjusted Expenses (3,328) (2,837) +17.3% Adj. EBITDA 1,315 962 +36.7% Adj. Operating Income 823 573 +43.5% Net Income 576 355 +62.1% Passenger RASK (US$ cents) 8.0 7.1 +12.7% Passenger CASK ex-fuel (US$ cents) 4.5 4.0 +12.0% Fuel Price (with hedge) 1 (US$ per barrel) 113.8 117.6 -3.3% 1. Fuel price paid is not comparable with Guidance assumptions as assumptions do not include into wing cost. 4 Capturing yield growth through strategic revenue management and customer preference ASK (billion) Load Factor (%) Passengers (million) PRASK (US$ cent) Consolidated 45.5 41.3 1Q-25 1Q-26 Domestic Brazil 12.4 13.9 1Q-25 1Q-26 Domestic SSC 7.3 7.3 1Q-25 1Q-26 International 24.4 21.5 1Q-25 1Q-26 +10.4% +11.9% (0.7)% +13.3% 83.3% 85.3% 1Q-25 1Q-26 80.8% 82.5% 1Q-25 1Q-26 85.8% 82.9% 1Q-25 1Q-26 86.8% 85.0% 1Q-25 1Q-26 +2.0 pp +1.7 pp +3.0 pp +1.8 pp 21.0 22.9 1Q-25 1Q-26 8.8 9.9 1Q-25 1Q-26 7.9 8.1 1Q-25 1Q-26 4.3 4.9 1Q-25 1Q-26 +9.1% +13.2% +2.6% +12.9% 8.0 7.1 1Q-25 1Q-26 8.6 7.3 1Q-25 1Q-26 9.8 7.9 1Q-25 1Q-26 6.8 7.2 1Q-25 1Q-26 +12.7% +17.1% USD +8.0% BRL +24.7% USD +18.8% Local Currency +6.3% 5 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. 1Q26 vs 1Q25 Wide body Wi-Fi in 2026 São Paulo and Miami Lounges vs 2019 Premium Comfort in 2027 4-star Skytrax rating Only airline in Latin American history to achieve this prestigious recognition. 55 million members Upcoming 2027 The Airbus A321XLR will include Premium Business Cabin Full-flat seats 2.6 million elite members 1. Premium revenue share calculated upon passenger revenues. Suite doors Direct aisle access Wi-Fi and Bluetooth connection ~60% of LATAM's passenger revenues are generated by LATAM PASS members 6 + premi 3 um un x ique travelers 2 prem 7 ium r % evenue share 1 2 prem 8 ium re % venue growth Premium passenger offering and value proposition driving revenue resilience LATAM generated US$391 million in cash during the quarter Adj. Cash Flow 1Q 2026 (US$ million) 2,150 858 (291) (58) (30) 2,630 +480 (89) Cash generation +391 2,541 Initial Cash Adj. CapEx Net of Financial Adj. Financial Cash Before Interim Ending Cash 2026 Operating Financing Interest Amortization Dividends Dividend 1Q 2026 Cash Flow Expense & others Payment 1. Interim dividend approved in December for a total of US$400 million. Given operational payment timings, US$89 million was executed in January. 7 Strong balance sheet position with flexibility for the future Liquidity US$4.1 bn 27.0% of LTM revenues Adj. Net leverage 1.3x Weighted average cost of debt WACD 6.6% Unencumbered assets 1 US$1.5 bn More than Non-fleet financial debt amortization profile (US$ million) October 2026 Callable as of July 2027 800 275 2026 2027 2028 2029 2030 2031 2032 2033 All international credit ratings with BB/Ba2 and Positive Outlook 1,400 Callable as of 8 1. As of December 31, 2025. Replacing 2026 full year guidance New 2026 Guidance Adj. Passenger CASK ex fuel 4.50 - 4.70 US$ cents Adj. Net Leverage ≤1.8x times Adj. EBITDA 3.80 - 4.20 US$ billion Liquidity ≥4.5 US$ billion Assumptions: Jet fuel price US$170 - US$170 - US$150 2Q26 3Q26 4Q26 Exchange rate BRL 5.15 per USD 9 Takeaways Differentiated and increasingly premium offering, combined with network strength, enabling effective revenue management. Strong first quarter performance supported by a healthy and resilient demand environment, providing a solid foundation for the year. Lean and strengthened balance sheet with high liquidity, low leverage, no short-term maturities, with assets and flexibility to navigate macro volatility. LATAM group operating from the strongest financial and operational position in its history, entering the current environment with momentum. 10 Results Presentation First Quarter 2026 May 5, 2026 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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