LATAM Airlines S A : 2Q 2026 Results Presentation

About this update from Latam Airlines Group Sa

Results Presentation Second Quarter 2026 August 4, 2026 Business model strength reflected in solid second quarter results Commercial execution Financial delivery Other updates 8.9% capacity growth, with load factor of 81.8%. Passenger unit revenue increasing 17.5% year-over-year. Premium revenues represent 29% of passenger revenues. LATAM Pass reached 56 million members. Revenues grew +28% YoY to US$4.2 billion, supported by both passenger and cargo business. Adjusted operating margin reached 5.4%. Net income came in at US$125 million, with an EPADS 1 of US$0.44. Adj. Operating cash flow of US$476 million. Updating full year 2026 guidance: Adj. EBITDA to US$4.1 - 4.4 billion. A new share repurchase program was approved by shareholders for up to 5% of the outstanding shares in five years. Announcement of the Embraer fleet initial deployment in LATAM Airlines Brazil's domestic market, including 8 new routes and 4 new Received 9 aircraft during the quarter, including 2 wide-body, ending the period with 383 aircraft. Liquidity at US$4.2 billion and Adj. Net leverage at 1.5x. destinations. 3 LATAM remained profitable despite the unprecedented fuel environment Revenues Adj. Operating Margin Net Income US$4.2 B 5.4% US$125 M Revenues 4,183 3,279 +27.6% Passenger 3,613 2,824 +27.9% Cargo 510 419 +21.8% Total Adjusted Expenses (3,956) (2,856) +38.5% Adjusted Costs ex-fuel (2,244) (1,969) +14.0% Fuel costs (1,712) (887) +93.1% Adj. EBITDA 713 850 (16.1)% Adj. Operating Income 227 423 (46.3)% Net Income 125 242 (48.2)% Passenger RASK (US$ cents) 8.1 6.9 +17.5% Passenger CASK ex-fuel (US$ cents) 4.5 4.3 +5.6% Fuel Price (with hedge) 1 (US$ per barrel) 194.5 107.1 +81.3% Income Statement (US$ million) 2Q-2026 2Q-2025 Change 1. All in fuel cost is not comparable with Guidance assumptions as assumptions do not include into wing cost. 4 Combining capacity growth with solid unit revenue increase ASK (billion) Load Factor (%) Passengers (million) PRASK (US$ cent) Consolidated 40.9 44.5 2Q-25 2Q-26 Domestic Brazil 12.7 13.4 2Q-25 2Q-26 Domestic SSC 6.5 6.9 2Q-25 2Q-26 International 21.6 24.2 2Q-25 2Q-26 +8.9% +5.7% +5.3% +11.8% 83.5% 81.8% 2Q-25 2Q-26 82.6% 80.7% 2Q-25 2Q-26 80.4% 78.8% 2Q-25 2Q-26 84.8% 83.3% 2Q-25 2Q-26 -1.7 pp -2.0 pp -1.6 pp -1.6 pp 20.6 21.1 8.1 +2.5% 6.9 +17.5% 2Q-25 2Q-26 2Q-25 9.3 9.5 2Q-26 8.9 +2.0% 7.2 +23.7% USD +12.2% BRL 2Q-25 2Q-26 2Q-25 7.9 8.1 2Q-26 9.6 +1.3% 8.0 2Q-25 2Q-26 2Q-25 2Q-26 7.2 +20.2% USD +14.9% Local Currencies 4.2 4.4 +5.5% 6.4 +12.7% 2Q-25 2Q-26 2Q-25 2Q-26 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. Revenue quality supported by premium passengers and the LATAM Pass program Premium segment Premium segment that positively responds to the differentiated value proposition Deepens customer engagement and loyalty supporting a more resilient and higher-quality revenue base 29% Premium revenue share 1 Premium revenue growth Premium NPS +9 p.p. vs main cabin vs passenger NPS of 56 points +3 points 67% Passenger revenues generated by LATAM Pass members LATAM Pass elite members Elite member Third Party sales +26% YoY +48% YoY 1. Premium revenue share calculated upon passenger revenues. Premium Revenue includes Premium Cabins, Ancillaries & Upsell, LATAM Travel & Corporate revenues. Note: LATAM Pass elite members include Gold, Platinum, Black and Black Signature categories. 6 Announcement of the first Embraer 195-E2 aircraft deployment in Brazil Including Premium Economy Offering Maintaining a consistent customer experience across aircraft types. New destinations New routes Existing destinations 7 Initial operation between November 2026 and March 2027: 42 routes served with the Embraer aircraft 8 Combination of new destinations and already established bases. New routes New destinations 4 Cabo Frio Ji-Paraná Rondonópolis Macaé 67 domestic destinations in Brazil vs 44 in 2019 Reaching LATAM generated US$476 million in Adj. Operating Cash Flow 476 Adj. Cash Flow 2Q 2026 (US$ million) Cash variation +110 2,541 (168) (85) (75) 2,689 +148 (38) 2,651 Initial Cash Adj. CapEx Net of Financial Adj. Financial Cash Before Dividend Ending Cash 2Q 2026 Operating Financing Interest Amortization Dividends Payment 2Q 2026 Cash Flow Expense & others 1. Remaining dividend to be paid to complete the mandatory distribution of 30% of 2025 net income, following the US$400 million interim dividend already paid. 8 Continued strengthening of the balance sheet 1.7x 1.5x 1.5x Liquidity (US$ million) 27.1% 26.2% Net leverage (x) Financial Policy Target <2.0x Financial Policy Top Range 25% 25.7% 3,533 3,725 4,226 1,958 2,150 2,651 1,575 1,575 1,575 2024 2025 2Q26 RCF Cash and cash equivalents Liquidity 2024 2025 2Q26 9 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 EBITDA for the last twelve months. Updating 2026 full year guidance under adjusted improved jet fuel scenario Indicator Guidance Updated 2026E Guidance (August 4, 2026) Operating Indicators Total ASK Growth vs 2025 9.0 % - 10.0% Domestic Brazil ASK Growth vs 2025 8.0 % - 9.0% Domestic Spanish Speaking Countries ASK Growth vs 2025 4.0 % - 5.0% International ASK Growth vs 2025 11.0 % - 12.0% Total ATK Growth vs 2025 5.0 % - 6.0% Financial Indicators Revenues (US$ billion) 17.3 - 17.7 Adjusted CASK ex fuel (US$ cents) 5.00 - 5.20 Adjusted Passenger CASK ex fuel (US$ cents) 4.50 - 4.70 Adjusted Operating Income (US$ billion) 2.10 - 2.30 Adjusted Operating Margin 12.0% - 13.0% Adjusted EBITDA (US$ billion) 4.10 - 4.40 Adjusted EBITDA Margin 23.0% - 25.0% Assumptions Adjusted Levered Free Cash Flow (US$ billion) Liquidity (US$ billion) ≥1.3 ≥4.7 ≤6.8 ≤1.6x Total Net Debt (US$ billion) Total Net Debt/Adjusted EBITDA (x) Average exchange rate (BRL/USD) 5.15 Jet fuel price 5 (US$/bbl) Q3:147 | Q4:130 10 Note: For the full version of the updated guidance, please refer to the Earnings Release document, where a detailed description of the indicators is provided. Takeaways Business model validated through effective execution under an unprecedented fuel environment. Diversified ecosystem and commercial flexibility enabled effective mitigation of higher fuel costs. Premium customers and LATAM Pass continue strengthening revenue quality and long-term competitiveness. Updated 2026 guidance supported by improved jet fuel prices and consistent execution. 11 Results Presentation Second Quarter 2026 August 4, 2026 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

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