Latam Airlines Group SaBCS: LTM

First Quarter 2026 Financial Statements

May 5, 2026 at 10:40 PM UTC · Issued by Latam Airlines Group Sa

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LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES INTERIM CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2026

CONTENTS

Interim Consolidated Statements of Financial Position Interim Consolidated Statements of Income by Function Interim Consolidated Statements of Comprehensive Income Interim Consolidated Statements of Changes in Equity

Interim Consolidated Statements of Cash Flows - Direct Method Notes to the Interim Consolidated Financial Statements

CLP - CHILEAN PESO

UF - CHILEAN UNIDAD DE FOMENTO ARS - ARGENTINE PESO

US$ - UNITED STATES DOLLAR

THUS$ - THOUSANDS OF UNITED STATES DOLLARS MUS$ - MILLIONS OF UNITED STATES DOLLARS COP - COLOMBIAN PESO

BRL/R$ - BRAZILIAN REAL

THR$ - THOUSANDS OF BRAZILIAN REAL PYG - PARAGUAYAN GUARANI

INDEPENDENT AUDITOR'S REVIEW REPORT

(A free translation from the original in Spanish) Santiago, May 5, 2026

To the Shareholders and Directors of LATAM Airlines Group S.A.

Introduction

We have reviewed the accompanying interim consolidated statement of financial position of LATAM Airlines Group S.A. and subsidiaries as of March 31, 2026, and the related interim consolidated statements of income by function, consolidated interim statements of comprehensive income, consolidated interim statements of changes in equity, and consolidated interim statements of cash flows - direct method, for the three month period then ended, and the notes to the interim consolidated financial statements, which include material accounting policy information. Management is responsible for the preparation and fair presentation of this consolidated interim financial information in accordance with IAS 34 "Interim Financial Reporting" as incorporated into the Accounting Standards of the International Financial Reporting Standards (IFRS Accounting Standards). Our responsibility is to express a conclusion on these interim consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Chilean Generally Accepted Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Santiago, May 5, 2026 LATAM Airlines Group S.A. 2

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial information do not present fairly, in all material respects, the consolidated interim financial position of the entity as of March 31, 2026, and its results and cash flows for the three month period then ended, in accordance with IAS 34 "Interim Financial Reporting" as incorporated into the IFRS Accounting Standards.

Other Matters

The audit of the consolidated financial statements of LATAM Airlines Group S.A. and subsidiaries as of December 31, 2025, for which we issued an unqualified opinion dated February 3, 2026, includes the consolidated statement of financial position as of December 31, 2025, included in the accompanying interim consolidated financial statements. The review of the interim consolidated financial statements of LATAM Airlines Group S.A. and subsidiaries as of March 31, 2025, for which we issued an unqualified conclusion dated April 28, 2025, includes the interim consolidated statements of income by function, consolidated interim statements of comprehensive income, consolidated interim statements of changes in equity and consolidated interim statements of cash flows - direct method, for the three month period then ended, which are presented for comparative purposes in the accompanying interim consolidated financial statements.

Jonathan Yeomans Gibbons

RUT: 13.473.972-K

Contents of the Notes to the interim consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries.

Notes Page 1 - General information 1

- Summary of significant accounting policies 5
1. Basis of Preparation 5
2. Basis of Consolidation 6
3. Foreign currency transactions 7
4. Property, plant and equipment 8
5. Intangible assets other than goodwill 8
6. Borrowing costs 9
7. Losses for impairment of non-financial assets 9
8. Financial assets 9
9. Derivative financial instruments and embedded derivatives 10
10. Inventories 11
11. Trade and other accounts receivable 11
12. Cash and cash equivalents 11
13. Capital 11
14. Trade and other accounts payables 11
15. Interest-bearing loans 11
16. Current and deferred taxes 12
17. Employee benefits 13
18. Provisions 13
19. Revenue from contracts with customers 14
20. Leases 15
21. Non-current assets (or disposal groups) classified as held for sale 16
22. Maintenance 16
23. Environmental costs 16
- Financial risk management 17
1. Financial risk factors 17
2. Capital risk management 29
3. Estimates of fair value 29
- Accounting estimates and judgments 31
- Segment information 34
- Cash and cash equivalents 35
- Financial instruments 36
- Trade and other accounts receivable current, and non-current accounts receivable 37
- Accounts receivable from/payable to related entities 39
- Inventories 40
- Other financial assets 41
- Other non-financial assets 42
- Non-current assets and disposal group classified as held for sale 43
- Investments in subsidiaries 44
- Intangible assets other than goodwill 47
- Property, plant and equipment 49
- Current and deferred tax 56
- Other financial liabilities 60
- Trade and other accounts payables 69
- Other provisions 70
- Other non financial liabilities 71
- Employee benefits 73
- Accounts payable, non-current 77
- Equity 77
- Revenue 86
- Costs and expenses by nature 86
- Other income, by function 88
- Foreign currency and exchange rate differences 89
- Earnings per share 95
- Contingencies 96
- Commitments 120
- Transactions with related parties 123
- Share based payments 124
- Statement of cash flows 129
- The environment 132
- Events subsequent to the date of the financial statements 134

ASSETS

Note

As of March 31,

2026

As of December 31,

2025

ThUS$ ThUS$ Unaudited

Current Assets

Cash and cash equivalents	6 - 7	2,540,752	2,150,113
Other financial assets	7 - 11	128,268	70,544
Other non-financial assets	12	250,135	236,071
Trade and other accounts receivable	7 - 8	1,475,230	1,381,869
Accounts receivable from related entities	7 - 9	17	7
Inventories	10	524,000	458,566
Current tax assets	17	122,587	75,704
Total current assets other than non-current assets (or disposal groups)
classified as held for sale		5,040,989		4,372,874
Non-current assets (or disposal groups) classified as held for sale	13	10,338		10,338

Total current assets 5,051,327 4,383,212

Non-current assets

Other financial assets	7 - 11	47,721	52,139
Other non-financial assets	12	97,639	93,517
Accounts receivable	7 - 8	13,671	13,950
Intangible assets other than goodwill	15	1,190,530	1,129,961
Property, plant and equipment	16	12,286,964	11,947,014
Deferred tax assets	17	21,345	21,098
Total non-current assets		13,657,870	13,257,679
Total assets		18,709,197	17,640,891

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

LIABILITIES AND EQUITY
LIABILITIES	Note	As of March 31, 2026	As of December 31, 2025
		ThUS$	ThUS$
		Unaudited
Current liabilities
Other financial liabilities	7 - 18	857,830	745,303
Trade and other accounts payables	7 - 19	2,678,881	2,684,846
Accounts payable to related entities	7 - 9	6,538	7,707
Other provisions	20	7,470	8,413
Current tax liabilities	17	65,200	31,950
Other non-financial liabilities	21	3,903,864	3,816,175
Total current liabilities		7,519,783	7,294,394

Non-current liabilities

Other financial liabilities	7 - 18	7,541,914	7,343,223
Accounts payable	7 - 23	486,132	471,208
Other provisions	20	702,995	674,611
Deferred tax liabilities	17	352,721	338,674
Employee benefits	22	178,949	181,579
Other non-financial liabilities	21	-	-
Total non-current liabilities		9,262,711	9,009,295
Total liabilities		16,782,494	16,303,689

EQUITY

Share capital	24	4,418,110	4,418,110
Retained earnings	24	2,573,472	2,170,280
Other equity	24	39	39
Other reserves	24	(5,057,155)	(5,242,835)
Parent's ownership interest		1,934,466	1,345,594
Non-controlling interest	14	(7,763)	(8,392)
Total equity		1,926,703	1,337,202
Total liabilities and equity		18,709,197	17,640,891

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

For the period ended March 31,

Note 2026 2025

ThUS$ ThUS$ Unaudited

Revenue	5 - 25	4,080,617	3,348,478
Cost of sales	26	(2,803,375)	(2,399,882)
Gross margin		1,277,242	948,596
Other income	27	70,175	62,123
Distribution costs	26	(166,853)	(135,030)
Administrative expenses	26	(216,045)	(191,777)
Other expenses	26	(146,184)	(131,520)
Other gains/(losses)	26	(7,012)	5,903
Income from the operational activities		811,323	558,295
Financial income	26	36,991	33,057
Financial costs	26	(164,006)	(151,725)
Foreign exchange gains (losses)		(54,146)	(75,145)
Result of indexation units		340	(239)
Income before taxes		630,502	364,243
Income Tax (expense)	17	(52,811)	(7,606)
NET INCOME FOR THE PERIOD		577,691	356,637
Income attributable to owners of the parent company		575,989	355,288
Income attributable to non-controlling interest	14	1,702	1,349
NET INCOME FOR THE PERIOD		577,691	356,637
EARNING PER SHARE Basic earning per share (US$)	29	0.001003	0.000588
Diluted earning per share (US$)	29	0.001003	0.000588

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

For the period ended at March 31,

Note 2026 2025

ThUS$ ThUS$ Unaudited

NET INCOME FOR THE PERIOD 577,691 356,637

Components of other comprehensive income (loss) that will not be reclassified to income before taxes

Other comprehensive (loss), before taxes, gains (losses) by new measurements on defined

benefit plans	24	6,133	(7,596)
Total other comprehensive income (loss) that will not be reclassified to income before taxes		6,133	(7,596)
Income (loss) components of other comprehensive income that will be reclassified to income before taxes
Gains/(losses) on currency translation, before tax		116,215	127,791
Other comprehensive income (loss), before taxes, currency translation differences		116,215	127,791
Cash flow hedges
Income (loss) on cash flow hedges before taxes	24	127,017	26,978
Reclassification adjustment on cash flow hedges before tax	24	(28,656)	(7,923)
Other comprehensive income (losses), before taxes, cash flow hedges		98,361	19,055
Change in value of time value of options
Income (losses) on change in value of time value of options before tax	24	(45,657)	(16,641)
Reclassification adjustments on change in value of time value of options before tax	24	11,074	10,727
Other comprehensive income (loss), before taxes, changes in the time value of the options		(34,583)	(5,914)
Total other comprehensive income (losses) that will be reclassified to losses before taxes		179,993	140,932
Other components of other comprehensive income (loss), before taxes		186,126	133,336
Income tax relating to other comprehensive income that will not be reclassified to income
Income tax relating to new measurements on defined benefit plans	17	(441)	321
Income tax relating to other comprehensive income that will not be reclassified to income		(441)	321
Total Other comprehensive income (loss)		185,685	133,657
Total comprehensive income (loss)		763,376	490,294
Comprehensive income (loss) attributable to owners of the parent company		761,669	489,296
Comprehensive income (loss) attributable to non-controlling interests		1,707	998
TOTAL COMPREHENSIVE INCOME (LOSS)		763,376	490,294

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

Note	Share capital	Other equity	Treasury shares	Currency translation reserve	Cash flow hedging reserve	changes in the time value of the options	defined benefit plans reserve	Shares based payments reserve	Other sundry reserve	Total other reserve	Retained earnings/ (losses)	Parent's ownership interest	Non-controlling interest	Total equity
Equity as of January 1,	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
2026	4,418,110	39	- (3,991,394)		(59,140)	45,439	(85,964)	37,235	(1,189,011)	(5,242,835)	2,170,280	1,345,594	(8,392)	1,337,202
Total increase (decrease) in equity Net income for the period 24	-	-	- -		-	-	-	-	-	-	575,989	575,989	1,702	577,691
Other comprehensive income (loss)	-	-	- 116,211		98,361	(34,583)	5,691	-	-	185,680	-	185,680	5	185,685
Total comprehensive income	-	-	- 116,211		98,361	(34,583)	5,691	-	-	185,680	575,989	761,669	1,707	763,376
Transactions with shareholders Dividends 24 Increase (decrease) by	-	-	- -		-	-	-	-	-	-	(172,797)	(172,797)	-	(172,797)
transaction with treasury shares in portfolio 24 (d) Increase (decrease)	-	-	- -		-	-	-	-	-	-	-	-	-	-
through transfers and other changes, equity 24-34	-	-	- -		-	-	-	-	-	-	-	-	(1,078)	(1,078)
Total transactions with shareholders	-	-	- -		-	-	-	-	-	-	(172,797)	(172,797)	(1,078)	(173,875)
Closing balance as of March 31, 2026 (Unaudited)	4,418,110	39	- (3,875,183)		39,221	10,856	(80,273)	37,235	(1,189,011)	(5,057,155)	2,573,472	1,934,466	(7,763)	1,926,703

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

Note	Share capital	Other equity	Treasury shares	Currency translation reserve	Cash flow hedging reserve	changes in the time value of the options	defined benefit plans reserve	Shares based payments reserve	Other sundry reserve	Total other reserve	Retained earnings/ (losses)	Parent's ownershi p interest	Non-controlling interest	Total equity
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$
	5,003,534	39	-	(4,209,660)	(52,896)	35,644	(69,414)	37,235	(1,169,506)	(5,428,597)	1,148,291	723,267	(11,938)	711,329
24	-	-	-	-	-	-	-	-	-	-	355,288	355,288	1,349	356,637
	-	-	-	128,140	19,055	(5,914)	(7,273)	-	-	134,008	-	134,008	(351)	133,657
	-	-	-	128,140	19,055	(5,914)	(7,273)	-	-	134,008	355,288	489,296	998	490,294
24	-	-	-	-	-	-	-	-	-	-	(106,586)	(106,586)	-	(106,586)
24 -33	-	-	-	-	-	-	-	-	(155,899)	(155,899)	-	(155,899)	32	(155,867)
	-	-	-	-	-	-	-	-	(155,899)	(155,899)	(106,586)	(262,485)	32	(262,453)
	5,003,534	39	-	(4,081,520)	(33,841)	29,730	(76,687)	37,235	(1,325,405)	(5,450,488)	1,396,993	950,078	(10,908)	939,170

Equity as of January 1, 2025

Total increase (decrease) in equity

Net income/(loss) for the period

Other comprehensive income

Total comprehensive income

Transactions with shareholders

Dividends Increase (decrease)

through transfers and other changes, equity

Total transactions with shareholders

Closing balance as of March 31, 2025 (Unaudited)

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS - DIRECT METHOD

For the period ended March 31,

Note 2026 2025

ThUS$ ThUS$ Unaudited

Cash flows from operating activities Cash collection from operating activities

Proceeds from sales of goods and services	4,337,759		3,458,397
Other cash receipts from operating activities	66,815		49,260
Payments for operating activities
Payments to suppliers for the supply goods and services		(2,622,467)	(2,205,100)
Payments to and on behalf of employees		(661,012)	(473,786)
Other payments for operating activities		(145,103)	(117,481)
Income taxes (paid)		(53,407)	(21,993)
Other cash inflows (outflows)	34	10,570	(10,952)

Net cash (outflow) inflow from operating activities 933,155 678,345 Cash flows from investing activities

Amounts raised from sale of property, plant and equipment		-	27,031
Purchases of property, plant and equipment	34	(319,981)	(370,271)
Purchases of intangible assets	34	(25,038)	(25,105)
Interest received		34,212	31,028
Other cash inflows (outflows)	34	23,591	14,129

Net cash (outflow) inflow from investing activities (287,216) (323,188) Cash flows inflow (out flow) from financing activities

Amounts raised from long-term loans	34	114,000	49,500
Loans repayments	34	(61,796)	(67,223)
Payments of lease liabilities	34	(117,796)	(90,120)
Dividends paid	34	(89,293)	(304)
Interest paid	34	(132,681)	(90,669)
Other cash (outflows) inflows	34	(3,118)	(880)
Net cash inflow (outflow) from financing activities		(290,684)	(199,696)
Net (decrease) increase in cash and cash equivalents before effect of exchanges rate change		355,255	155,461
Effects of variation in the exchange rate on cash and cash equivalents		35,384	33,050
Net (decrease) increase in cash and cash equivalents		390,639	188,511
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	6	2,150,113	1,957,788
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	6	2,540,752	2,146,299

The accompanying Notes 1 to 36 form an integral part of these interim consolidated financial statements.

‌LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2026 (UNAUDITED)

NOTE 1 - GENERAL INFORMATION

LATAM Airlines Group S.A. ("LATAM" or the "Company") is an open stock company which holds the values inscribed in the Registro de Valores of the Commission for the Financial Market, whose shares are listed in Chile on the Electronic Stock Exchange of Chile - Stock Exchange and the Santiago Stock Exchange. Additionally, during the third quarter of 2024, it relisted its American Depositary Receipts ("ADRs") on the New York Stock Exchange ("NYSE") in the United States of America.

Its main business is the air transport of passengers and cargo, both in the domestic markets of Chile, Peru, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe, Africa, Asia and Oceania . These businesses are developed directly or by its subsidiaries in Chile, Ecuador, Peru, Brazil, Colombia and Paraguay. In addition, the Company has subsidiaries that operate in the cargo business in Chile, Brazil and Colombia.

The Company is located in Chile, in the city of Santiago, on Avenida Presidente Riesco No. 5711, Las Condes commune.

As of March 31, 2026, the Company's statutory capital is represented by 574,219,895,457 ordinary shares without nominal value. As of that date, 574,215,983,709 shares were subscribed and paid. The foregoing, considering the capital increase approved by the shareholders of the company at an extraordinary meeting held on July 5, 2022, in the context of the implementation of its reorganization plan approved and confirmed in the Chapter 11 Proceedings, as well as the Capital decrease required for the Chilean Capital Markets law that appears in a public deed dated September 6, 2023, granted at the Notary of Santiago of Mr. Eduardo Javier Diez Morello, and the modification of the Company's by laws to account for said full capital reduction, agreed at an Extraordinary Shareholders meeting dated April 25, 2024, reduced to a public deed dated April 25, 2024, granted in the Notary of Santiago of Mr. Luis Eduardo Rodriguez Burr, an extract of which was registered in the Commercial Registry of the Registrar of Real Estate of Santiago on page 44,323 number 18,314 corresponding to the year 2024, and was published in the Official Gazette dated May 29, 2024. In addition, the current share capital structure reflects the early cancellation of 30,221,893,878 treasury shares previously issued by the Company and acquired under the share repurchase programs approved at the Extraordinary Shareholders' Meetings held on March 17 and June 26, 2025. This capital optimization transaction, together with the corresponding reduction of share capital in the amount of US$585,424,212, was approved at the Extraordinary Shareholders' Meeting held on October 17, 2025, the minutes of which were executed as a public deed dated October 17, 2025, granted before the Notary Public of Santiago, Mr. Eduardo Diez Morello. An excerpt thereof was registered in the Commercial Registry of the Santiago Real Estate Registrar under page 105,884, number 39,532, corresponding to the year 2025, and was published in the Official Gazette on November 15, 2025. As a result of such early cancellation of shares and the corresponding reduction of share capital, the Company's share capital was adjusted from US$5,003,576,326.78 (represented by 604,441,789,335 shares of a single class without par value) to a final amount of US$4,418,152,114.78, divided into 574,219,895,457 shares of a single class, without par value.

The major shareholders of the Company, considering the total amount of subscribed and paid shares, are Banco de Chile on behalf of State Street which owns 15.83%, Delta Air Lines with 10.57% and Qatar Airways with 10.56% ownership interest.

As of March 31, 2026, the Company had a total of 2,048 shareholders in its registry. At that date, approximately 8.98% of the Company's capital stock was in the form of ADRs.

As of March 31, 2026, the Company had an average of 41,718 employees, ending this year with a total of 42,082 collaborator, distributed in 5,516 Administration employees, 21,251 in Operations, 10,294 Cabin Crew and 5,021 Command crew.

The main subsidiaries included in these consolidated financial statements are as follows:

Percentage ownership

Tax No.	Company	of origin	Currency	Direct	Indirect	Total	Direct	Indirect	Total
				%	%	%	%	%	%
96.969.680-0	Lan Pax Group S.A. and Subsidiaries	Chile	US$	99.9959	Unaudited 0.0041	100.0000	99.9959	0.0041	100.0000
Foreign	Latam Airlines Perú S.A.	Peru	US$	23.6200	76.1900	99.8100	23.6200	76.1900	99.8100
93.383.000-4	Lan Cargo S.A.	Chile	US$	99.8940	0.0041	99.8981	99.8940	0.0041	99.8981
76.717.244-3	Prime Cargo SpA.	Chile	CLP	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
Foreign	Connecta Corporation	U.S.A.	US$	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
Foreign	Prime Airport Services Inc. and Subsidiary	U.S.A.	US$	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
96.951.280-7	Transporte Aéreo S.A.	Chile	US$	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
96.631.520-2	Fast Air Almacenes de Carga S.A.	Chile	CLP	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary	Chile	US$	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
96.575.810-0	Inversiones Lan S.A.	Chile	US$	99.9000	0.1000	100.0000	99.9000	0.1000	100.0000
96.847.880-K	Technical Training LATAM S.A.	Chile	CLP	99.8300	0.1700	100.0000	99.8300	0.1700	100.0000
Foreign	Latam Finance Limited	Cayman Island	US$	100.0000	0.0000	100.0000	100.0000	0.0000	100.0000
Foreign	Peuco Finance Limited (*)	Cayman Island	US$	100.0000	0.0000	100.0000	100.0000	0.0000	100.0000
Foreign	Professional Airline Services INC.	U.S.A.	US$	100.0000	0.0000	100.0000	100.0000	0.0000	100.0000
Foreign	Jarletul S.A.	Uruguay	US$	0.0000	100.0000	100.0000	0.0000	100.0000	100.0000
Foreign	Latam Travel S.R.L.	Bolivia	US$	99.0000	1.0000	100.0000	99.0000	1.0000	100.0000
76.262.894-5	Latam Travel Chile II S.A.	Chile	US$	99.9900	0.0100	100.0000	99.9900	0.0100	100.0000
Foreign	Latam Travel S.A.	Argentina	ARS	94.0100	5.9900	100.0000	94.0100	5.9900	100.0000
Foreign	Faisán Finance DAC (*)	Ireland	US$	100.0000	0.0000	100.0000	100.0000	0.0000	100.0000
Foreign	TAM S.A. and Subsidiaries (**)	Brazil	BRL	63.0987	36.9013	100.0000	63.0987	36.9013	100.0000

Country

Functional

As March 31, 2026 As December 31, 2025

(*) These subsidiaries have no operations.

(**) As of March 31, 2026, the indirect participation percentage of TAM S.A. and its Subsidiaries is from Holdco I S.A., a company which LATAM Airlines Group S.A. has a 100% share on economic rights and 51.04% of political rights. Its percentage arose as a result of the provisional measure No. 863 of the Brazilian government implemented in December of 2018 that allows foreign capital to have up to 100% of the share ownership of a Brazilian Airline.

Financial Information

Statement of financial position Net Income

For the period ended March 31,

As of March 31, 2026 As of December 31, 2025 2026 2025

Tax No.	Company	Assets	Liabilities	Equity	Assets	Liabilities	Equity	Gain /(loss)
		ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$ ThUS$
			Unaudited					Unaudited
96.969.680-0	Lan Pax Group S.A. and Subsidiaries (*)	455,567	1,984,044	(1,138,417)	549,409	2,048,197	(1,117,168)	(18,608)	(15,131)
Foreign	Latam Airlines Perú S.A.	559,395	414,797	144,598	529,475	418,988	110,487	34,111	22,617
93.383.000-4	Lan Cargo S.A.	586,578	330,465	256,113	578,756	318,492	260,264	(3,687)	(9,170)
76.717.244-3	Prime Cargo SpA.	15,945	11,399	4,546	16,818	12,333	4,485	170	(124)
Foreign	Connecta Corporation	37,535	11,770	25,765	37,884	10,717	27,167	(1,403)	(1,409)
Foreign	Prime Airport Services Inc. and Subsidiary (*)	20,100	15,328	4,772	19,264	15,291	3,973	799	356
96.951.280-7	Transporte Aéreo S.A.	233,968	142,065	91,903	234,376	141,333	93,043	(2,323)	(7,653)
96.631.520-2	Fast Air Almacenes de Carga S.A.	29,584	17,883	11,701	30,055	18,951	11,104	875	564
96.969.690-8	Lan Cargo Inversiones S.A. and Subsidiary (*)	284,142	149,567	(32,979)	264,655	145,918	(45,855)	12,875	11,685
96.575.810-0	Inversiones Lan S.A.	1,198	45	1,153	1,208	48	1,160	(8)	14
96.847.880-K	Technical Training LATAM S.A.	1,300	991	309	1,485	1,060	425	(242)	76
Foreign	Latam Finance Limited	111	208,620	(208,509)	111	208,620	(208,509)	-	-
Foreign	Professional Airline Services INC.	11,977	1,911	10,066	11,382	2,084	9,298	769	648
Foreign	Jarletul S.A.	7	1,101	(1,094)	9	1,101	(1,092)	(1)	-
Foreign	Latam Travel S.R.L.	95	-	95	95	-	95	-	-
76.262.894-5	Latam Travel Chile II S.A.	338	1,224	(886)	338	1,225	(887)	-	(1)
Foreign	Latam Travel S.A.	4,236	2,238	1,998	4,323	1,807	2,516	(317)	(194)
Foreign	TAM S.A. and Subsidiaries (*)	5,443,966	3,385,144	2,058,935	4,963,316	3,167,385	1,794,199	210,153	34,263

(*) The Equity reported corresponds to Equity attributable to owners of the parent company, it does not include Non-controlling participation.

In addition, the following special purpose entities have been consolidated: (1) Chercán Leasing Limited, intended to finance advance payments of aircraft; (2) Yamasa Sangyo Aircraft LA1 Kumiai, Yamasa Sangyo Aircraft LA2 Kumiai; (3) Jin Shan 16; and (4) Star Rising Aviation 45 Limited, earmarked for aircraft financing. These companies have been consolidated as required by IFRS 10.

All entities over which LATAM has control have been included in the consolidation. The Company has analyzed the control criteria in accordance with the requirements of IFRS 10.

Changes occurred in the consolidation perimeter between January 1, 2025 and March 31, 2026, are detailed below:

Incorporation or acquisition of companies
- On January 27, 2025, Transportes Aéreos del Mercosur S.A. approved the distribution of total dividends for an amount of ThUS$6,056 (ThUS$5,752 paid to TAM S.A. and ThUS$304 paid to a non-controlling interest), corresponding to profits for the 2024 financial year. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.
- On February 3, 2025, a capital increase was made in Americonsult de Costa Rica S.A., through a the contribution of Americonsult, S.A. de C.V. of accounts receivable for ThUS$489; consequently, there were no significant changes in the shareholding composition, and therefore, did not generate any effect within the Consolidated Financial Statements.
- On February 28, 2025, a capital reduction was carried out at TAM S.A. through the absorption of accumulated losses and legal reserves, in the amount of ThUS$670,075. This transaction did not generate any impact effect within the Consolidated Financial Statements.
- On February 28, 2025, a capital reduction was carried out at TAM Linhas Aéreas S.A. through the absorption of accumulated losses and legal reserves, in the amount of ThUS$695,701. This transaction did not generate any impact effect within the Consolidated Financial Statements.
- On March 17, 2025, a capital reduction was carried out at Inversora Cordillera S.A. through the absorption of losses in the amount of ThUS$4,542. Consequently, there were no significant changes in the shareholding composition, and therefore, did not generate any impact effect within the Consolidated Financial Statements.
- On March 31, 2025, the clousure of Laser Cargo S.R.L.and Consorcio Fast Air Laser Cargo UTE, did not generate any impact effect within the Consolidated Financial Statements.
- On April 25, 2025, the Company Atlantic Aviation Investment LLC. was liquidated and its controller Lan Pax Group S.A. acquired all its assets, liabilities, rights and obligations, as a result of the liquidation. These transactions were carried out between entities under common control of LATAM Airlines Groups S.A. and, therefore, did not generate any effect within the Consolidated Financial Statements.
- On August 5, 2025, Americonsult de Guatemala was legally dissolved, did not generate any impact effect within the Consolidated Financial Statements.
- On August 28, 2025, Americonsult de Costa Rica S.A. was legally dissolved, did not generate any impact effect within the Consolidated Financial Statements.
- On September 9, 2025, TAM S.A. approved the distribution of a total dividend amounting to ThUS$105,376 (of whichThUS$95,684 was paid to LATAM Airlines Group S.A. and ThUS$9,692 was paid to Holdco I S.A.), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.
- On October 29, 2025, Multiplus Corretora de Seguros Limitada and Prismah Fidelidade Limitada merged with TAM Linhas Aéreas S.A., did not generate any impact effect within the Consolidated Financial Statements.
- On October 29, 2025, TP Franchising Limitada was absorbed by Fidelidade Viagens e Turismo S.A., which acquired all of its assets, liabilities, rights, and obligations. This transaction was carried out between entities of the LATAM Airlines Group S.A. and, therefore, had no effect on the Consolidated Financial Statements.
- On November 14,2025, Lan Cargo S.A., as sole shareholder, increased its capital in Prime Cargo SpA. by ThUS$4,077. This transaction did not generate any effect on the Consolidated Financial Statements.
- On December 16, 2025, TAM S.A. approved the distribution of a total dividend amounting to ThUS$366,788 (of which ThUS$323,578 was paid to LATAM Airlines Group S.A. and ThUS$43,210 was paid to Holdco I S.A.), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.
- On January 26, 2026, Transportes Aéreos del Mercosur S.A. approved the distribution of a total dividend amounting to ThUS$21,476 (of which ThUS$20,398 was paid to LATAM Airlines Group S.A. and ThUS$1,078 was paid to a non-controlling interest), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.
- On January 27, 2026, TAM S.A. approved the distribution of a total dividend amounting to ThUS$61,849 (of which ThUS$58,762 was paid to LATAM Airlines Group S.A. and ThUS$3,087 allocated to legal reserve), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.
- On February 19, 2026, the Company Línea Aérea Carguera del Ecuador S.A. was incorporated, which is 100% owned by Latam Airlines Ecuador S.A whose purpose is to carry out international air cargo transport services and the development of related activities.
- On March 2, 2026, Holdco I S.A. approved the distribution of a total dividend amounting to ThUS$40,000 (of which ThUS$39,999 was paid to LATAM Airlines Group S.A. and ThUS$1 was paid to a non-controlling interest), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.
- On March 6, 2026, Latam Travel S.A. approved the distribution of a total dividend amounting to ThUS$514 (of which ThUS$483 was paid to LATAM Airlines Group S.A., ThUS$20 was paid to Lan Pax Group S.A. and ThUS$2 was paid to Inversora Cordillera S.A.), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.

‌NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following describes the principal accounting policies adopted in the preparation of these consolidated financial statements.

‌Basis of Preparation

These consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries as of March 31, 2026 and for the three months ended March 31, 2026 and 2025, have been prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting, as issued by the International Accounting Standards Board.

The consolidated financial statements have been prepared under the historic-cost criterion, although modified by the valuation at fair value of certain financial instruments.

The preparation of the consolidated financial statements in accordance with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to use its judgment in applying the Company's accounting policies. Note 4 describe the areas that imply a greater degree of judgment or complexity or the areas where the assumptions and estimates are significant to the consolidated financial statements.

These consolidated financial statements have been prepared in accordance with the accounting policies used by the Company in the preparation of the 2025 consolidated financial statements, except for the standards and interpretations adopted as of January 1, 2026.

Application of new standards for the year 2026:
Accounting pronouncements with implementation effective from January 1, 2026:
Issuance Date Effective Date:
(i) Standards and amendments
Amendment to IFRS 9 and IFRS 7: Classification and Measurement of
Financial Instruments May 2024 01/01/2026
The adoption of the IFRS 9 amendment did not impact the classification or measurement of the Company's financial instruments. Regarding amendment related to the electronic settlement of liabilities, the Company did not apply the early derecognition option, maintaining the accounting records of the obligations until their actual settlement.
Accounting pronouncements not in force for the financial year beginning on January 1, 2026:

	Issuance Date	Effective Date:
(i) Standards and amendments
IFRS 18: Presentation and disclosures in the financial statements	April 2024	01/01/2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures	May 2024	01/01/2027
Amendments to IAS 21: Translation to a Hyperinflationary Presentation Currency	November 2025	01/01/2027

The Company's management is currently evaluating the potential impact of applying IFRS 18 Presentation and disclosure in Financial Statements on the consolidated financial statements. Furthermore, it is estimated that the adoption of the amendment to IFRS 19 Non-Publicly Owned Subsidiaries: Disclosures, and the amendment to IAS 21, will not have a significant effect on the company's consolidated financial statements in the year of their initial adoption.

‌Basis of Consolidation
1. Subsidiaries
  Subsidiaries are all the entities (including special-purpose entities) over which the Company has the power to control the financial and operating policies, which are generally accompanied by a holding of more than half of the voting rights. In evaluating whether the Company controls another entity, the existence and effect of potential voting rights that are currently exercisable or convertible at the date of the consolidated financial statements are considered. The subsidiaries are consolidated from the date on which control is passed to the Company and they are excluded from the consolidation on the date they cease to be so controlled. The results and cash are incorporated from the date of acquisition.
  Balances, transactions and unrealized gains on transactions between the Company's entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment loss of the asset transferred. When necessary, in order to ensure uniformity with the policies adopted by the Company, the accounting policies of the subsidiaries are modified.
  To account for and identify the financial information to be disclosed when carrying out a business combination, such as the acquisition of an entity by the Company, the acquisition method provided for in IFRS 3: Business combinations is used.
2. Transactions with non-controlling interests
  The Group applies the policy of considering transactions with non-controlling interests, when not related to the loss of control, as equity transactions without an effect on income.
3. Sales of subsidiaries
When a subsidiary is sold and a percentage of participation is not retained, the Company derecognizes the assets and liabilities of the subsidiary, the non-controlling interest and other components of equity related to the subsidiary. Any gain or loss resulting from the loss of control is recognized in the consolidated income statement by function within Other gains/(losses).
If LATAM Airlines Group S.A. and Subsidiaries retain an ownership of participation in the disposed subsidiary which does not represent control, this is recognized at fair value on the date that control is lost and the amounts previously recognized in Other comprehensive income are accounted as if the Company had
disposed directly the assets and related liabilities, which can cause these amounts to be reclassified to profit or loss. The percentage retained valued at fair value is subsequently accounted using the equity method.
‌Foreign currency transactions
1. Presentation and functional currencies
  The items included in the financial statements of each of the entities of LATAM Airlines Group S.A. and its Subsidiaries are valued using the currency of the main economic environment in which the entity operates (the functional currency). The functional currency of LATAM Airlines Group S.A. is the United States Dollar, which is also the presentation currency of the consolidated financial statements of LATAM Airlines Group
  S.A. and Subsidiaries.
2. Transactions and balances
  Foreign currency transactions are translated to the functional currency using the exchange rates on the transaction dates. When there is no exchangeability between two currencies on the measurement date, the spot exchange rate on that date will be estimated. Foreign currency gains and losses resulting from the liquidation of these transactions and from the translation at the closing exchange rates of the monetary assets and liabilities denominated in foreign currency are shown in the consolidated statement of income by function except when deferred in Other comprehensive income as qualifying cash flow hedges.
3. Adjustment due to hyperinflation
  After July 1, 2018, the Argentine economy was considered, for purposes of IFRS Accounting Standards, hyperinflationary. The consolidated financial statements of the subsidiaries whose functional currency is the Argentine Peso have been restated.
  The non-monetary items of the statement of financial position as well as the income statement, comprehensive income and cash flows of the group's entities, whose functional currency corresponds to a hyperinflationary economy, are adjusted for inflation and re-expressed in accordance with the variation of the consumer price index ("CPI"), at each presentation date of its financial statements. The re-expression of non-monetary items is made from the date of initial recognition in the statements of financial position and considering that the financial statements are prepared under the historical cost criterion.
  Net losses or gains arising from the re-expression of non-monetary ítems and income and costs are recognized in the consolidated income statement under "Result of indexation units".
  Net gains and losses on the re-expression of opening balances due to the initial application of IAS 29 were recognized in the consolidated "Retained earnings/(losses)".
  Re-expression due to hyperinflation will be recorded until the period or exercise in which the economy of the entity ceases to be considered as a hyperinflationary economy. At that time, the adjustments made by hyperinflation will be part of the cost of non-monetary assets and liabilities.
  The comparative amounts in the consolidated financial statements of the Company are presented in a stable currency and are not adjusted for subsequent changes in the price level or exchange rates.
4. Group entities
  The results and the financial situation of the Group's entities, whose functional currency is different from the presentation currency of the consolidated financial statements, of LATAM Airlines Group S.A., which does not correspond to the currency of a hyperinflationary economy, are converted into the currency of presentation as follows:
  1. Assets and liabilities of each consolidated statement of financial position presented are translated at the closing exchange rate on the consolidated statement of financial position date;
  2. The revenues and expenses of each income statement account are translated at the exchange rates prevailing on the transaction dates, and
  3. All the resultant exchange differences by conversion are shown as a separate component in other comprehensive income, within "Gains/(losses) on currency translation, before tax".
For those subsidiaries of the group whose functional currency is different from the presentation currency and corresponds to the currency of a hyperinflationary economy; its restated results, cash flow and financial situation are converted to the presentation currency at the closing exchange rate on the date of the consolidated financial statements.
The exchange rates used correspond to those fixed in the country where the subsidiary is located, whose functional currency is different to the U.S. dollar.
‌Property, plant and equipment
The land of LATAM Airlines Group S.A. and its Subsidiaries, are recognized at cost less any accumulated impairment loss. The rest of the Property, plant and equipment are recorded, both at their initial recognition and their subsequent measurement, at their historical cost, restated for inflation when appropriate, less the corresponding depreciation and any loss due to impairment.
The amounts of advances paid to the aircraft manufacturers are capitalized by the Company under Construction in progress until they are received.
Subsequent costs (replacement of components, improvements, extensions, etc.) are included in the value of the initial asset or are recognized as a separate asset, only when it is probable that the future economic benefits associated with the elements of property, plant and equipment, will flow to the Company and the cost of the item can be determined reliably. The value of the replaced component is written off. The rest of the repairs and maintenance are charged to income when they are incurred.
The depreciation of the Property, plant and equipment is calculated using the linear method over their estimated technical useful lives; except in the case of certain technical components which are depreciated on the basis of cycles and hours flown. This charge is recognized in the captions "Cost of sales" and "Administrative expenses".
The residual value and the useful life of assets are reviewed and adjusted, if necessary, once a year. Useful lives are detailed in Note 16 (d).
When the value of an asset exceeds its estimated recoverable amount, its value is immediately reduced to its recoverable amount.
Losses and gains from the sale of property, plant and equipment are calculated by comparing the consideration with the book value and are included in the consolidated statement of income.
‌Intangible assets other than goodwill
1. Airport slots and Loyalty program
  Airport slots and the Loyalty program correspond to intangible assets with indefinite useful lives and are annually tested for impairment as an integral part of the CGU Air Transport.
  Airport Slots correspond to an administrative authorization to carry out operations of arrival and departure of aircraft, at a specific airport, within a certain period of time.
  The Loyalty program corresponds to the system of accumulation and exchange of miles that is part of TAM Linhas Aereas S.A.
2. Computer software
Licenses for computer software acquired are capitalized on the basis of the costs incurred in acquiring them and preparing them for using the specific software. These costs are amortized over their estimated useful lives, for which the Company has defined useful lives between 3 and 10 years.
Expenses related to the development or maintenance of computer software which do not qualify for capitalization, are shown as an expense when incurred. The personnel costs and other costs directly related to the production of unique and identifiable computer software controlled by the Company, are shown as intangible Assets other than Goodwill when they have met all the criteria for capitalization.
‌Borrowing costs
Interest costs incurred for the construction of any qualified asset are capitalized over the time necessary for completing and preparing the asset for its intended use. Other interest costs are recognized in the consolidated statement of income by function when accrued.
‌Losses for impairment of non-financial assets
Intangible assets that have an indefinite useful life and IT projects under development are not subject to amortization and are subject to annual impairment testing or if there are indications of impairment, as an integral part of the Air Transport CGU. Assets subject to amortization are tested for impairment losses whenever any event or change in circumstances indicates that the carrying amount may not be recoverable. An impairment loss is recognized for the excess of the carrying amount of the asset over its recoverable amount. The recoverable amount is the fair value of an asset less the costs of sale or the value in use, whichever is greater. For the purpose of evaluating impairment losses, assets are grouped at the lowest level for which there are largely independent cash inflows (cash generating unit. Non-financial assets, other than goodwill, that would have suffered an impairment loss are reviewed if there are indicators of reversal of losses. Impairment losses are recognized in the consolidated statement of income by function under "Other gains (losses)".
‌Financial assets
The Company classifies its financial assets in the following categories: at fair value (either through other comprehensive income, or through gains or losses), and at amortized cost. The classification depends on the business model of the entity to manage the financial assets and the contractual terms of the cash flows.
The group reclassifies debt investments when, and only when, it changes its business model to manage those assets.
In the initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset classified at amortized cost, the transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets accounted for at fair value through profit or loss are recorded as expenses in the consolidated statement of income by function.
1. Debt instruments
  The subsequent measurement of debt instruments depends on the group's business model to manage the asset and cash flow characteristics of the asset. The Company has two measurement categories in which the group classifies its debt instruments:
  Amortized cost: the assets held for the collection of contractual cash flows where those cash flows represent only payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in income when the asset is derecognized or impaired. Interest income from these financial assets is included in financial income using the effective interest rate method.
  Fair value through profit or loss: assets that do not meet the criteria of amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and is presented net in the consolidated statement of income by function within other gains / (losses) in the period or exercise in which it arises.
2. Equity instruments
Changes in the fair value of financial assets at fair value through profit or loss are recognized in Other gains/ (losses) in the consolidated statement of income by function as appropriate.
The Company evaluates in advance the expected credit losses associated with its debt instruments recorded at amortized cost. The applied impairment methodology depends on whether there has been a significant increase in credit.
‌Derivative financial instruments and embedded derivatives Derivative financial instruments and hedging activities
Initially at fair value on the date on which the derivative contract was made and are subsequently valued at their fair value. The method to recognize the resulting loss or gain depends on whether the derivative designated as a hedging instrument and, if so, the nature of the item being hedged.
The Company designates certain derivatives as:
1. Hedge of an identified risk associated with a recognized liability or an expected highly- probable transaction (cash-flow hedge), or
2. Derivatives that do not qualify for hedge accounting.
At the beginning of the transaction, the Company documents the economic relationship between the hedged items existing between the hedging instruments and the hedged items, as well as its objectives for risk management and the strategy to carry out various hedging operations. The Company also documents its assessment, both at the beginning and on an ongoing basis, as to whether the derivatives used in the hedging transactions are highly effective in offsetting the changes in the fair value or cash flows of the items being hedged.
The total fair value of the hedging derivatives is booked as Other non-current financial asset or liability if the remaining maturity of the item hedged is over 12 months, and as an Other current financial asset or liability if the remaining term of the item hedged is less than 12 months. Derivatives not booked as hedges are classified as Other financial assets or liabilities.
1. Cash flow hedges
  The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is shown in the statement of other comprehensive income. The loss or gain relating to the ineffective portion is recognized immediately in the consolidated statement of income by function under other gains (losses). Amounts accumulated in equity are reclassified to profit or loss in the periods or exercise when the hedged item affects profit or loss. When these amounts correspond to hedging derivatives of highly probable items that give rise to non-financial assets or liabilities, in which case, they are recorded as part of the nonfinancial assets or liabilities.
  For fuel price hedges, the amounts shown in the statement of other comprehensive income are reclassified to results under the line-item Cost of sales to the extent that the fuel subject to the hedge is used.
  Gains or losses related to the effective part of the change in the intrinsic value of the options are recognized in the cash flow hedge reserve within equity. Changes in the time value of the options related to this part are recognized within Other Consolidated Comprehensive Income in the costs of the hedge reserve within equity.
  When a hedging instrument matures, is sold, or fails to meet the requirements to be accounted for as a hedge, any gain or loss accumulated in the statement of Other comprehensive income until that moment, remains in the statement of other comprehensive income and is reclassified to the consolidated statement of income when the hedged transaction is finally recognized.
  When it is expected that the hedged transaction is no longer going to occur, the gain or loss accumulated in the statement of other comprehensive income is taken immediately to the consolidated statement of income by function as "Other gains (losses)".
2. Derivatives not booked as a hedge
The changes in fair value of any derivative instrument that is not booked as a hedge are shown immediately in the consolidated statement of income in "Other gains (losses)".
Embedded derivatives
The Company assesses the existence of embedded derivatives in financial instrument contracts. Derivatives embedded in non-derivative host contracts are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the contracts are not measured at FVTPL as a whole. LATAM Airlines Group S.A. has determined that no embedded derivatives currently exist.
‌Inventories
Inventories, are shown at the lower of cost and their net realizable value. The cost is determined on the basis of the weighted average cost method (WAC). The net realizable value is the estimated selling price in the normal course of business, less estimated costs necessary to make the sale.
‌Trade and other accounts receivable
Commercial accounts receivable are initially recognized at their fair value and subsequently at their amortized cost in accordance with the effective rate method, less the provision for impairment according to the model of the expected credit losses. The Company applies the simplified approach permitted by IFRS 9, which requires that expected lifetime losses be recognized upon initial recognition of accounts receivable.
In the event that the Company transfers its rights to any financial asset (generally accounts receivable) to a third party in exchange for a cash payment, the Company evaluates whether all risks and rewards have been transferred, in which case the account receivable is derecognized.
The existence of significant financial difficulties on the part of the debtor, the probability that the debtor goes bankrupt or financial reorganization are considered indicators of a significant increase in credit risk.
The carrying amount of the asset is reduced as the provision account is used and the loss is recognized in the consolidated income statement under "Cost of sales". When an account receivable is written off, it is regularized against the provision account for the account receivable.
‌Cash and cash equivalents
Cash and cash equivalents include cash and bank balances, time deposits in financial institutions, and other short-term and highly liquid investments and a low risk of loss of value.
‌Capital
The common shares are classified as net equity.
Incremental costs directly attributable to the issuance of new shares or options are shown in net equity as a deduction from the proceeds received from the placement of shares.
‌Trade and other accounts payables
Trade payables and other accounts payable are initially recognized at fair value and subsequently at amortized cost.
‌Interest-bearing loans
Financial liabilities are shown initially at their fair value, net of the costs incurred in the transaction. Later, these financial liabilities are valued at their amortized cost; any difference between the proceeds obtained (net of the necessary arrangement costs) and the repayment value, is shown in the consolidated statement of income during the term of the debt, according to the effective interest rate method.
Financial liabilities are classified in current and non-current liabilities according to the contractual payment dates of the nominal principal and compliance with contractual agreements at the closing date of these financial statements.
Convertible Notes
The component parts of the convertible notes issued by LATAM Airlines Group S.A. are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The conversion option classified as equity is determined by the deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in other equity, net of income tax effects. and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in other equity until the conversion option is exercised, in which case, the balance recognized in other equity will be transferred to share capital. Where the conversion option remains unexercised at maturity date of the convertible bond, the balance recognized in other equity will be transferred to "Retained earnings". No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option.
Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are charged directly to equity.
‌Current and deferred taxes
The tax expense for the period or exercise comprises income and deferred taxes.
The current income tax expense is calculated based on tax laws enacted at the date of the statement of financial position, in the countries in which the subsidiaries and associates operate and generate taxable income.
Deferred taxes are calculated according to the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. When deferred taxes arise from the initial recognition of a liability or an asset in a transaction other than a business combination, which at the time of the transaction does not affect either the accounting result or the tax profit or loss, they are recorded. Deferred tax is determined using the tax rates (and laws) that have been enacted or substantially enacted at the date of the consolidated statements of financial position and are expected to apply when the related deferred tax asset is realized or the deferred tax liability discharged.
Deferred tax assets are recognized only to the extent it is probable that the future taxable profit will be available against which the temporary differences can be utilized.
The tax (current and deferred) is recognized in the statement of income by function, unless it relates to an item recognized in other comprehensive income, directly in equity or arises from a business combination. In this case the tax is also recognized in other comprehensive income or, directly in the statement of income by function, respectively.
Deferred tax assets and liabilities are offset if, and only if:
1. there is a legally enforceable right to set off current tax assets and liabilities, and
2. the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either:
(i) the same taxable entity, or (ii) different taxable entities which intend to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
LATAM Airlines Group S.A. has assessed the potential impact arising from the implementation of the so-called "GloBE Rules" or "Pillar Two", which aim to ensure that multinational groups are subject to a minimum effective tax rate of 15%.
Based on the analyses performed, the Group has concluded that, with the exception of Brazil, Ireland and Uruguay, no entity, permanent establishment or vehicle within the LATAM Group is expected to have a financial impact arising from the application of the GloBE Rules as of March 31, 2026, based on the information available at that date. This is either because such entities fall outside the scope of the GloBE Rules
(as they do not meet the criteria to be considered "Constituent Entities") or because they are located in jurisdictions that, as of that date, have not implemented the Pillar Two rules.
With respect to Brazil, Ireland and Uruguay, although the local entities fall within the scope of Pillar Two and are therefore subject to compliance obligations, the analyses performed to date - including the application of the Transitional Safe Harbours and preliminary GloBE modelling - indicate that no material impact on the Group's consolidated results is expected. Accordingly, no income tax expense related to Pillar Two has been recognized as of the reporting date.
Uruguay has enacted legislation introducing a Qualified Domestic Minimum Top-up Tax (QDMTT), the effective application of which is subject to the conditions established under local law. The Group will continue to monitor its implementation and potential impact.
Given the complexity and evolving nature of this new legislation, LATAM Group continues to monitor and assess potential impacts on an ongoing basis, particularly in the event that jurisdictions which have not yet implemented Pillar Two decide to do so, or if further analysis becomes necessary with respect to legal entities and permanent establishments classified as "Constituent Entities".
LATAM Airlines Group S.A. and its Subsidiaries have adopted the exception set out in paragraph 4A of IAS 12, incorporated in the amendment published on May 23, 2023, and therefore have not recognized deferred tax assets or liabilities related to Pillar Two income taxes.
‌Employee benefits
1. Personnel vacations
  The Company recognizes the expense for personnel vacations on an accrual basis.
2. Share-based compensation
  The compensation plans implemented based on the value of the shares of the Company are recognized in the consolidated financial statements in accordance with IFRS 2: Share-based payments, for cash settled awards the fair value, updated as of the closing date of each reporting period or exercise, is recorded as a liability with charge to remuneration.
3. Post-employment
  Provisions are made for these obligations by applying the method of the projected unit credit method, and considering estimates of future permanence, mortality rates and future wage increases determined on the basis of actuarial calculations. The discount rates are determined by reference to market interest-rate curves. Actuarial gains or losses are shown in other comprehensive income.
4. Incentives
  The Company has an annual incentives plan for its personnel for compliance with objectives and individual contribution to the results. The incentives eventually granted consist of a given number or portion of monthly remuneration and the provision is made on the basis of the amount estimated for distribution.
5. Termination benefits
The group recognizes termination benefits at the earlier of the following dates: (a) when the group terminates the employee relationship; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 and involves the payment of terminations benefits.
‌Provisions
Provisions are recognized when:
1. The Company has a present legal or constructive obligation as a result of a past event;
2. It is probable that payment is going to be required to settle an obligation; and
3. A reliable estimate of the obligation amount can be made.
‌Revenue from contracts with customers
1. Transportation of passengers and cargo
  The Company recognizes the sale for the transportation service as a deferred income liability, which is recognized as income when the transportation service has been provided or expired. In the case of air transport services sold by the Company and that will be made by other airlines, the liability is reduced when they are remitted to said airlines. The Company periodically reviews whether it is necessary to make an adjustment to deferred income liabilities, mainly related to returns, changes, among others.
  Compensations granted to clients for changes in the levels of services or billing of additional services such as additional baggage, change of seat, among others, are considered modifications of the initial contract, therefore, they are deferred until the corresponding service is provided.
2. Expiration of air tickets
  The Company estimates on a monthly basis the probability of expiration of air tickets, with refund clauses, based on their history of use. Air tickets without a refund clause expire on the date of the flight in case the passenger does not show up.
3. Costs associated with the contract
  The costs related to the sale of air tickets are capitalized and deferred until the moment of providing the corresponding service. These assets are included under the heading "Other non-financial assets" on "Current Assets" in the Consolidated Classified Statement of Financial Position.
4. Frequent passenger program
The Company maintains the following loyalty programs: LATAM Pass and LATAM Pass Brazil, whose objective is building customer loyalty through the delivery of miles.
These programs give their frequent passengers the possibility of earning LATAM Pass miles, which grant the right to a selection of both air and non-air awards. Additionally, the Company sells the LATAM Pass miles to financial and non-financial partners through commercial alliances to award miles to their customers.
To reflect the miles earned, the loyalty program mainly includes two types of transactions that are considered revenue arrangements with multiple performance obligations: (1) Passenger Ticket Sales Earning miles (2) miles sold to financial and non-financial partner.
1. Passenger Ticket Sales Earning Miles.
  In this case, the miles are awarded to customers at the time that the company performs the flight.
  To value the miles earned with travel, we consider the quantitative value a passenger receives by redeeming miles for a ticket rather than paying cash, which is referred to as Equivalent Ticket Value ("ETV"). Our estimate of ETV is adjusted for miles that are not likely to be redeemed ("breakage").
  The balance of miles that are pending to redeem are included within deferred revenue.
2. Miles sold to financial and non-financial partners
To value the miles earned through financial and non-financial partners, the performance obligations with the client are estimated separately. To calculate these performance obligations, different components that add value in the commercial contract must be considered, such as marketing, advertising and other benefits, and finally the value of the miles awarded to customers based on our ETV. The value of each of these components is finally allocated in proportion to their relative prices. The performance obligations associated with the valuation of the miles earned become part of the Deferred Revenue, and the remaining performance obligations are recorded as revenue when the miles are delivered to the client.
When the miles are exchanged for products and services other than the services provided by the Company, the income is recognized immediately; when the exchange is made for air tickets of any airline of LATAM Airlines Group S.A. and Subsidiaries, the income is deferred until the air transport service is provided.
The miles that the Company estimates will not be exchanged are recognized in the results based on the consumption pattern of the miles effectively exchanged by customers. The Company uses statistical models to estimate the probability of exchange, which is based on historical patterns and projections.
‌Leases
The Company recognizes contracts that meet the definition of a lease as a right of use asset and a lease liability on the date when the underlying asset is available for use.
Right of use assets are measured at cost including the following:
- The amount of the initial measurement of the lease liability;
- Lease payment made at or before commencement date;
- Initial direct costs, and
- Restoration costs.
  The right of use assets are recognized in the statement of financial position in Property, plant and equipment. Lease liabilities include the net present value of the following payments:
- Fixed payments including in substance fixed payment.
- Variable lease payments that depend on an index or a rate;
- The exercise price of a purchase option, if it is reasonably certain that the option will be exercised.
  The discount rate that LATAM Airlines Group S.A. and Subsidiaries uses is the interest rate implicit in the lease, if that rate can be readily determined. This is the rate of interest that causes the present value of (a) lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor.
  LATAM Airlines Group S.A. and Subsidiaries uses its incremental borrowing rate if the interest rate implicit in the lease cannot be readily determined.
  Lease liabilities are recognized in the statement of financial position under "Other financial liabilities, current or non-current".
  Interest accrued on financial liabilities is recognized in the consolidated statement of income in "Financial costs".
  Principal and interest are present in the consolidated cash flow as "Payments of lease liability" and "Interest paid", respectively, within financing cash flows.
  Payments associated with short-term leases without purchase options and leases of low-value assets are recognized on a straight-line basis in profit or loss at the time of accrual. Those payments are presented within operating cash flows.
  The Company analyzes the financing agreements of aircraft, mainly considering characteristics such as:
  1. That the Company initially acquired the aircraft or took an important part in the process of direct acquisition with the manufacturers.
  2. Due to the contractual conditions, it is virtually certain that the Company will execute the purchase option of the aircraft at the end of the lease term.
  Since these financing agreements are "substantially purchases" and not leases, the related liability is considered as a financial debt classified under IFRS 9 and continues to be presented within the "Other financial liabilities" described in Note 18. On the other hand, the aircraft are presented in Property, Plant and Equipment, as described in Note 16, as "own aircraft".
  The Group qualifies as sale and lease transactions, operations that lead to a sale according to IFRS 15. More specifically, a sale is considered as such if there is no option to purchase the goods at the end of the lease term.
  If the sale by the seller-lessee is classified as a sale in accordance with IFRS 15, the underlying asset is derecognized, and a right-of-use asset equal to the portion retained proportionally of the amount of the asset is recognized.
  If the sale by the seller-lessee is not classified as a sale in accordance with IFRS 15, the transferred assets are kept in the financial statements and a financial liability equal to the sale price is recognized (received from the buyer-lessor).
‌Non-current assets or disposal groups classified as held for sale
Non-current assets (or disposal groups) classified as assets held for sale are shown at the lesser of their book value and the fair value less costs to sell.
‌Maintenance
The costs incurred for scheduled heavy maintenance of the aircraft's fuselage and engines are capitalized and depreciated until the next maintenance. The depreciation rate is determined on technical grounds, according to the use of the aircraft expressed in terms of cycles and flight hours.
In case of aircraft include in property, plant and equipment, these maintenance cost are capitalized as Property, plant and equipment, while in the case of aircraft on right of use, a liability is accrued based on the use of the main components is recognized, since a contractual obligation with the lessor to return the aircraft on agreed terms of maintenance levels exists. These are recognized as Cost of sales.
Additionally, some contracts that comply with the definition of lease establish the obligation of the lessee to make deposits to the lessor as a guarantee of compliance with maintenance and return conditions. These deposits, often called maintenance reserves, accumulate until a major maintenance is performed; and once done, recovery is requested to the lessor. At the end of the contract period, there is comparison between the reserves that have been paid and required return conditions, and compensation between the parties are made if applicable.
The unscheduled maintenance of aircraft and engines, as well as minor maintenance, are charged to results as incurred.
‌Environmental costs

Disbursements related to environmental protection are charged to results when incurred or accrue.

‌NOTE 3 - FINANCIAL RISK MANAGEMENT

‌Financial risk factors

The Company is exposed to different financial risks: (a) market risk, (b) credit risk, and (c) liquidity risk. The risk management of the Company aims to minimize the adverse effects of financial risks affecting the company.

Market risk

Due to the nature of its operations, the Company has exposure to market factors such as: (i) fuel-price risk, (ii) exchange -rate risk (FX), and (iii) interest -rate risk.

The Company has developed manuals and procedures to manage the market risk, which goal is to identify, quantify, monitor and mitigate the adverse effects of changes in market factors mentioned above.

For the foregoing, Management monitors the evolution of fuel price levels, exchange rates and interest rates, quantifies their exposures and their risk, and develops and executes hedging strategies.

Fuel-price risk Exposure:

For the execution of its operations, the Company purchases a fuel called Jet Fuel grade 54 USGC, which is subject to the fluctuations of international fuel prices.

Mitigation:

To hedge the fuel-price risk exposure, the Company operates with derivative instruments (swaps and options) whose underlying assets may be different from Jet Fuel, such as West Texas Intermediate ("WTI") crude, Brent ("BRENT") crude and distillate Heating Oil ("HO"), which may have a high correlation with Jet Fuel and greater liquidity.

Fuel Hedging Results:

During the period ended March 31, 2026, the Company recognized gains of US$24.5 million for fuel hedging net of premiums in the costs of sales for the year. During the year ended March 31, 2025, the Company recognized losses of US$2.2 million for fuel hedging net of premiums in the costs of sales for the year.

As of March 31, 2026, the market value of the fuel positions amounted to US$77.3 million (positive). At the end of December 2025, this market value was US$14.0 million (positive).

The following tables show the level of hedge for different periods:

Positions as of March 31, 2026 (*) (Unaudited) Maturities

Q226 Q326 Q426 Q127 Total

Percentage of coverage over the expected volume of consumption

44% 31% 22% 5% 25%

Positions as of December 31, 2025 (*) Maturities

Q126 Q226 Q326 Q426 Total

Percentage of coverage over the expected volume of

consumption 48% 39% 26% 17% 32%

(*) The percentage shown in the table considers all the hedging instruments (swaps and options).

Sensitivity analysis

A drop in fuel price positively affects the Company through a reduction in costs. However, also negatively affects contracted positions as these are acquired to protect the Company against the risk of a rise in price. Therefore, the strategy is to maintain a hedge-free percentage in order to be competitive in the event of a drop in price.

The current hedge positions are booked as cash flow hedge contracts, so a variation in the fuel price has an impact on the Company's net equity.

The following table shows the sensitivity of financial instruments according to reasonable changes in the price of fuel and their effect on equity.

The calculations were made considering a parallel movement of US$5 per barrel in the underlying reference price curve at the end of March 2026 and the end of December 2025. The projection period was defined until the end of the last fuel hedging contract in force, being the last business day of the first quarter of 2027.

Benchmark price (US$ per barrel)

Positions as of March 31, 2026 effect on Equity

(MUS$)

Positions as of December 31, 2025 effect on Equity

(MUS$)

Unaudited

+1.5

+17.6

-5

-1.8

-15.1

Given the fuel hedging structure as of the first quarter of 2026, which considers a portion free of hedges, a vertical drop of 5 dollars in the JET reference price (considered as the monthly daily average), would have meant an impact of approximately US$35.7 million lower fuel cost in that quarter. For the same period, a vertical rise of 5 dollars in the JET reference price (considered as the monthly daily average), would have meant an approximate impact of US$40.4 million in higher fuel costs.

Foreign exchange rate risk:

Exposure:

The functional currency of the financial statements of the parent company is the US dollar, so that the risk of the Transactional and Conversion exchange rate arises mainly from the Company's business, strategic and accounting operating activities that are expressed in a monetary unit other than the functional currency.

The subsidiaries of LATAM are also exposed to foreign exchange risk whose impact affects the Company's Consolidated Income.

The largest operational exposure to LATAM's exchange risk comes from the concentration of businesses in Brazil, which are mostly denominated in Brazilian real (R$), and are actively managed by the Company.

At a lower concentration, the Company is also exposed to the fluctuation of other currencies, such as: Euro, Pound sterling, Australian dollar, Colombian peso, Chilean peso, Argentine peso, Paraguayan guarani, Mexican peso, Peruvian Sol and New Zealand dollar.

Mitigation:

The Company mitigates currency risk exposures by contracting hedging or non-hedging derivative instruments or through natural hedges or execution of internal operations.

Exchange Rate Hedging Results (FX):

As of March 31, 2026, the Company recognized losses of US$6.9 million for FX hedging derivatives net of premiums reflected in exchange rate. At the end of March of 2025, the Company recognized losses for US$0.5 million for FX hedging derivatives in exchange rate.

As of March 31, 2026, the market value of hedging FX derivative positions is US$1.6 million (negative). As of December 31, 2025, the market value of the hedging FX derivative positions was US$2.7 million (positive). As

of March 31, 2026, the Company has current hedging FX derivatives for US$490 million. As of December 31, 2025, the Company held hedging FX derivatives of US$355 million.

Sensitivity analysis:

A depreciation of the R$/US$ exchange rate, negatively affects the Company's operating cash flows, however, also positively affects the value of the positions of derivatives contracted.

The following table shows the sensitivity of current hedging FX derivative instruments according to reasonable changes in the exchange rate and its effect on equity.

Appreciation (depreciation) of R$/US$

Effect on equity as of March 31, 2026 (MUS$)

Effect on equity as of December 31, 2025 (MUS$)

-10%

Unaudited

-6.5

-7.9

+10%

+15.6

+10.9

Impact of Exchange rate variation in the Consolidated Income Statements (Foreign exchange gains/losses).

In the case of TAM S.A., whose functional currency is the Brazilian real, a large part of its assets and liabilities is expressed in US dollars. Therefore, when converting financial assets and liabilities, from US dollar to Brazilian reais, they have an impact on the result of TAM S.A., which is consolidated in the Company's Income Statement.

In order to reduce the impact on the Company's result caused by appreciations or depreciations of R$/US$, the Company carries out internal operations to reduce the net exposure in US$ for TAM S.A.

The following table shows the impact of the Exchange Rate variation on the Consolidated Income Statement when the R$/US$ exchange rate appreciates or depreciates by 10%:

Appreciation (depreciation) of R$/US$

Effect on Income Statement

for the period ended March 31, 2026 (MUS$)

Effect on Income Statement

for the period ended March 31, 2025 (MUS$)

Unaudited Unaudited

-10% -73.4 -58.6

+10% +73.4 +58.6

Impact of the exchange rate variation in the Equity, from translating the subsidiaries financial statements into US Dollars (Cumulative Translate Adjustment).

Since the functional currency of TAM S.A. and Subsidiaries is the Brazilian real, the Company presents the effects of the exchange rate fluctuations in Other comprehensive income (Cumulative Translation Adjustment) by converting the Statement of financial position and Income statement of TAM S.A. and Subsidiaries from their functional currency to the U.S. dollar, which is the presentation currency of the consolidated financial statement of LATAM Airlines Group S.A. and Subsidiaries.

The following table shows the impact on the Cumulative Translation Adjustment included in Other comprehensive income recognized in Total equity in the case of an appreciation or depreciation of 10% in the exchange rate R$/US$:

Appreciation (depreciation) of R$/US$

Effect at March 31, 2026 MUS$

Effect at December 31, 2025 MUS$

-10%

Unaudited

+407.12

+368.74

+10%

-333.10

-301.70

Interest -rate risk:

Exposure:

The Company has exposure to fluctuations in interest rates affecting the future cash flows of the assets, and current and future financial liabilities.

The Company is mainly exposed to the Secured Overnight Financing Rate ("SOFR") and other less relevant interest rates such as Brazilian Interbank Certificates of Deposit ("CDI") .

Of the company's financial debt subject to variable rates, all of the contracts maintain exposure to the SOFR reference rate.

Mitigation:

Currently, 64% (66% as of December 31, 2025) of the debt is fixed against fluctuations in interest rates. The variable debt is indexed to the reference rate based on SOFR.

Likewise, most of the company's liquidity is denominated in US dollars and indexed to a return rate similar and with a similar fluctuation to the SOFR rate, which helps reduce exposure.

Rate Hedging Results:

During the period ended March 31, 2026, the Company did not recognize any losses for premiums paid. At the end of March of 2025, the Company did not recognize any losses for premiums paid.

As of March 31, 2026, the Company does not hold interest rate derivative positions corresponding to operating leases to fix the income of future plane arrivals. (US$4.68 million as of December 31, 2025).

As of March 31, 2026, the Company did not recognize an decrease in the right-of-use asset due to the expiration of derivatives associated with certain aircraft leases. As of December 31, 2025, the Company recognized an increase in the right-of-use asset due to the expiration of derivatives for US$2.2 million associated with the aircraft lease. On this same date, a lower depreciation expense of the right-of-use asset for US$0.5 million was recognized. At the end of March of 2025, the Company recognized US$0.5 million for this same concept.

As of March 31, 2026, the Company did not recognize maturities of derivatives associated with aircraft leases. As of December 31, 2025, the Company settled derivatives associated with hedges of leased aircraft for US$2.2 million.

Sensitivity analysis:

The following table shows the sensitivity of changes in financial obligations that are not hedged against interest-rate variations. These changes are considered reasonably possible, based on current market conditions each date.

Increase (decrease) of future curve SOFR rate

Positions as of March 31, 2026 effect on Income (Loss) before taxes

(MUS$)

Positions as of March 31, 2025 effect on Income (Loss) before tax

(MUS$)

Unaudited Unaudited

+100 basis points -15.66 -15.66

-100 basis points +15.66 +15.66

A large part of the derivatives of current rates are recorded as cash flow hedge contracts, therefore, a variation in interest rates has an impact on the market value of the derivatives, whose changes affect the equity of the entity.

Increase (decrease) interest rate curve	effect on equity (MUS$)	effect on equity (MUS$)
	Unaudited
+100 basis points	-	-
-100 basis points	-	-

Positions as of March 31, 2026 Positions as of December 31, 2025

The calculations were made by vertically increasing (decreasing) 100 basis points of the interest rate curve, both scenarios being reasonably possible according to historical market conditions.

The sensitivity calculation hypothesis must assume that the forward curves of interest rates will not necessarily reflect the real value of the compensation of the flows. In addition, the interest rate structure is dynamic over time.

During the period ended March 31, 2026, the Company did not record any losses for ineffectiveness in the consolidated income statement for this type of coverage.

Credit risk
Credit risk occurs when the counterparty does not comply with its obligations to the Company under a specific contract or financial instrument, resulting in a loss in the market value of a financial instrument (only financial assets, not liabilities). The customer portfolio as of March 31, 2026 has experienced an increase of 7% compared to the balance as of December 31, 2025, mainly due to an increase in passenger transportation operations (travel agencies and corporate) which increased by 31% in its sales, mainly affecting the payment methods credit card 32%, and cash sales 30%. In relation to the cargo business, its operations increased by 5% compared to December 2025. There was special consideration for the Expected Credit Loss calculation for the clients with balance at the year end that management considered risky. The Expected Credit Loss at the end of March 2026 had a decrease of 9% compared to the end of December 2025, due to the reduction of the portfolio resulting from recoveries and the application of write-offs during the quarter.
The Company is exposed to credit risk due to its operational activities and its financial activities, including deposits with banks and financial institutions, investments in other types of instruments, exchange rate transactions and derivatives contracts.
To reduce the credit risk related to operational activities, the company has implemented credit limits to limit the exposure of its debtors, which are permanently monitored for the LATAM network, when deemed necessary, agencies have been blocked for cargo and passenger businesses.
1. Financial activities
  Cash surpluses that remain after the financing of assets necessary for the operation are invested according to credit limits informed to the Company's Board, mainly in time deposits with different financial institutions, private investment funds and short-term mutual funds. These investments are booked as Cash and cash equivalents.
  In order to reduce counterparty risk and to ensure that the risk assumed is known and managed by the Company, investments are diversified among different banking institutions (both local and international). The Company evaluates the credit standing of each counterparty and the levels of investment, based on (i) its credit rating, and (ii) investment limits according to the Company's level of liquidity. According to these two parameters, the Company chooses the most restrictive parameter of the previous two and based on this, establishes limits for operations with each counterparty.
  The Company has no guarantees to mitigate this exposure.
2. Operational activities
  The Company has four large sales "clusters": travel agencies, cargo agents, airlines and credit-card administrators. The first three are governed by International Air Transport Association ("IATA"), international organization comprising most of the airlines that represent over 90% of scheduled commercial traffic and one of its main objectives is to regulate the financial transactions between airlines and travel agents and cargo. When an agency or airline does not pay their debt, it is excluded from operating with IATA's member airlines. In the case of credit-card administrators, they are fully guaranteed by 100% by the issuing institutions.
  Under certain of the Company's credit card processing agreements, the financial institutions have the right to require that the Company maintain a reserve equal to a portion of advance ticket sales that have been processed by that financial institution, but for which the Company has not yet provided the air transportation. Additionally, the financial institutions have the ability to require additional collateral reserves or withhold payments related to receivables to be collected if increased risk is perceived related to liquidity covenants in these agreements or negative balances occur.
  The exposure consists of the term granted, which fluctuates between 1 and 45 days.
  One of the tools the Company uses for reducing credit risk is to participate in global entities related to the industry, such as IATA, Billing Settlement Plan ("BSP"), Cargo Account Settlement Systems ("CASS"), IATA Clearing House ("ICH") and banks (credit cards). These institutions fulfill the role of collectors and distributors between airlines and travel and cargo agencies. In the case of the Clearing House, it acts as an offsetting entity between airlines for the services provided between them. A reduction in term and implementation of guarantees has been achieved through these entities.
  The sales invoicing of TAM Linhas Aéreas S.A. related with cargo agents for domestic transportation in Brazil is done directly by TAM Linhas Aereas S.A.
  Credit quality of financial assets
  The external credit evaluation system used by the Company is provided by IATA. Internal systems are also used for particular evaluations or specific markets based on trade reports available on the local market. The internal classification system is complementary to the external one, i.e. for agencies or airlines not members of IATA, the internal demands are greater.
  To reduce the credit risk associated with operational activities, the Company has established credit limits to mitigate the exposure of their debtors which are monitored permanently . The bad-debt rate in the principal countries where the Company has a presence is insignificant.
Liquidity risk

Liquidity risk represents the risk that the Company does not have sufficient funds to pay its obligations.

Due to the cyclical nature of its business, the operation and investment needs, along with the need for financing, the Company requires liquid funds, defined as Cash and cash equivalents plus other short-term financial assets, to meet its payment obligations.

The balance of liquid funds, future cash generation and the ability to obtain financing, provide the Company with alternatives to meet future investment and financing commitments.

As of March 31, 2026, the balance of liquid funds is US$2,541 million (US$2,150 million as of December 31, 2025), which are invested in short-term instruments through financial entities with a high credit rating classification.

As of March 31, 2026, LATAM maintains three Revolving Credit Facility for a total of US$1,850 million, one for an amount of US$800 million, another for an amount of US$750 million and the last one for US$300 million. The first two are fully available whilst the third has US$25 million undrawn and available. With this, the sum of the three committed credit lines amounts to a total of US$1,575 million. The first of these lines is secured by and subject to the availability of certain collateral (i.e. aircraft, engines and spare parts). The second one, is secured by certain intangibles assets of the Company, which are shared with both international bonds. The third is collateralized by spare engines. (See Note 31)

Class of liability for the analysis of liquidity risk ordered by date of maturity as of March 31, 2026 (Unaudited) Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2 Chile.

Up to

More than 90 days

More than one to

More than three to

More than

Annual

Obligations with	the public
97.036.000-K	SANTANDER	Chile	UF	-	3,254	6,457	6,457	196,891	213,059	161,422	To the expiration	2.00	2.00
0-E	WILMINGTON TRUST COMPANY	U.S.A.	US$	55,125	116,125	342,500	2,487,375	-	3,001,125	2,200,000	To the expiration	8.46	7.78
97.036.000-K	SANTANDER	Chile	US$	-	-	-	-	6	6	3	To the expiration	1.00	1.00

Tax No.

Creditor

Creditor country

Currency

days

to one year

three years

five years

Total

Nominal value

Amortization

Effective rate

Nominal rate

ThUS$

Guaranteed obligations

0-E 0-E	BNP PARIBAS WILMINGTON TRUST	U.S.A. U.S.A.	US$ US$	5,320	15,867	41,289	40,933	76,162	179,571	143,163	Quarterly	5.28	5.28
	COMPANY			5,316	15,774	40,757	47,857	-	109,704	95,712	Quarterly/Monthly	4.96	4.96
0-E	CCB	Ireland	US$	6,015	17,802	46,301	44,809	329,170	444,097	283,021	Quarterly	5.66	5.66
0-E	BOCOMM	Ireland	US$	6,128	18,103	46,647	44,172	242,942	357,992	239,583	Quarterly	5.79	5.79

Other guaranteed obligation

0-E	EXIM BANK	U.S.A.	US$	5,444	16,356	43,572	11,042	-	76,414	73,862	Quarterly	2.03	1.79
0-E 0-E	NATIXIS CREDIT	France France	US$ US$	14,617	42,763	100,816	49,903	28,745	236,844	206,709	Quarterly	5.41	5.41
AGRICOLE				3,882	12,134	302,309	-	-	318,325	275,012	To the expiration	5.71	5.71
Financial lease 0-E NATIXIS France			US$	9,276	27,605	71,041	87,944	-	195,866	160,482	Quarterly	6.02	6.02
0-E EXIM BANK U.S.A.			US$	25,661	67,653	143,203	52,998	7,589	297,104	282,190	Quarterly	3.50	2.63
0-E BOC AVIATION U.S.A.			US$	2,769	8,441	22,450	22,444	98,253	154,357	104,408	Monthly	6.03	6.03
0-E BANK OF UTAH U.S.A.			US$	5,963	17,969	58,688	41,998	65,264	189,882	149,188	Monthly	10.46	10.46
TOTAL				145,516	379,846	1,266,030	2,937,932	1,045,022	5,774,346	4,374,755

Class of liability for the analysis of liquidity risk ordered by date of maturity as of March 31, 2026 (Unaudited) Debtor: TAM S.A. Tax No. 02.012.862/0001-60, Brazil.

Up to

More than 90 days

More than one to

More than three to

More than

Annual

Tax No.

Creditor

Creditor country

Currency

days

to one year

three years

five years

Total

Nominal value

Amortization

Effective rate

Nominal rate

ThUS$

Financial leases 0-E

NATIXIS

France

US$

510

1,530

9,376

- -

11,416

Quarterly

TOTAL

510

1,530

9,376

- -

11,416

Class of liability for the analysis of liquidity risk ordered by date of maturity as of March 31, 2026 (Unaudited) Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2, Chile.

Up to

More than 90 days

More than one to

More than three to

More than

Annual

Trade and other accounts payables

Accounts payable to related parties currents

Total

consolidated 3,028,650 1,005,636 2,656,554 4,149,607 3,113,024 13,953,471 11,055,025

Tax No.	Creditor	Creditor country	Currency	90 days	to one year	three years	five years	five years	Total	Nominal value	Amortization	Effective rate	Nominal rate
				ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		%	%
Lease Liability
AIRCRAFT OTHERS US$				204,256	573,611	1,310,526	1,159,374	1,941,385	5,189,152	3,763,503	- - -
OTHER OTHERS US$ ASSETS				5,215	15,123	38,579	27,360	92,450	178,727	130,605	- - -
CLP				291	852	2,273	2,273	19,033	24,722	24,358	- - -
UF				1,564	4,470	10,748	7,749	5,376	29,907	21,989	- - -
COP				509	1,356	1,024	-	-	2,889	2,406	- - -
EUR				8	25	26	-	-	59	53	- - -
BRL				3,523	10,531	17,898	14,916	9,758	56,626	40,324	- - -
MXN				37	94	74	3	-	208	197	- - -
- OTHERS OTHERS US$				1,202,465	5,951	-	-	-	1,208,416	1,208,416	- - -
CLP				190,499	1,603	-	-	-	192,102	192,102	- - -
BRL				1,063,291	50	-	-	-	1,063,341	1,063,341	- - -
Other currency				210,966	4,056	-	-	-	215,022	215,022	- - -
Foreign Qatar Airways Qatar US$				-	1,807	-	-	-	1,807	1,807	- - -
Foreign Delta Air Lines, U.S.A US$ Inc.				-	4,731	-	-	-	4,731	4,731	- - -
Total				2,882,624	624,260	1,381,148	1,211,675	2,068,002	8,167,709	6,668,854

Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2025 Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2 Chile.

Tax No. Creditor	Creditor country	Currency	Up to 90 days	More than 90 days to one year	More than one to three years	More than three to five years	More than five years	Total	Nominal value	Amortization	Annual
											Effective rate	Nominal rate
			ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		%	%
Obligations with the public
97.036.000-K SANTANDER	Chile	UF	-	3,159	6,266	6,266	202,439	218,130	164,600	To the expiration	2.00	2.00
0-E WILMINGTON TRUST	U.S.A.	US$								To the
COMPANY			30,500	140,750	342,500	1,687,375	830,500	3,031,625	2,200,000	expiration	8.46	7.78
97.036.000-K SANTANDER	Chile	US$	-	-	-	-	-	0.006	3	To the expiration	1.00	1.00

Guaranteed obligations

0-E 0-E	BNP PARIBAS WILMINGTON	U.S.A. U.S.A.	US$ US$	5,370	15,576	40,835	40,993	81,342	184,116	146,535	Quarterly	5.38	5.38
	TRUST COMPANY			5,307	15,611	40,740	52,876	-	114,534	99,775	Quarterly/ Monthly	5.81	5.81
0-E	CCB	Ireland	US$	3,670	10,686	27,597	26,849	199,000	267,802	170,208	Quarterly	5.75	5.75
0-E	BOCOMM	Ireland	US$	6,149	18,209	46,836	44,371	248,051	363,616	242,188	Quarterly	5.83	5.83
Other guaranteed obligation
0-E	EXIM BANK	U.S.A.	US$	5,463	16,383	43,668	16,557	-	82,071	78,956	Quarterly	2.03	1.79
0-E	NATIXIS	France	US$	14,707	43,262	108,256	50,467	34,705	251,397	218,473	Quarterly	5.39	5.39
0-E	CREDIT AGRICOLE	France	US$	4,378	13,063	310,081	-	-	327,522	275,012	To the expiration	5.94	5.94
Financial lease
0-E	NATIXIS	France	US$	9,409	27,399	70,797	96,349	-	203,954	166,742	Quarterly	6.12	6.12
0-E	US BANK	U.S.A.	US$	25,763	73,206	148,595	61,763	13,355	322,682	305,863	Quarterly	3.54	2.68
0-E	EXIM BANK	U.S.A.	US$	1,438	4,175	11,172	11,187	49,887	77,859	52,500	Quarterly	6.31	6.31
0-E	BANK OF UTAH	U.S.A.	US$	5,952	17,928	54,357	48,204	69,393	195,834	149,983	Monthly	10.46	10.46
	TOTAL			118,106	399,407	1,251,700	2,143,257	1,728,672	5,641,142	4,270,838

Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2025 Debtor: TAM S.A. Tax No. 02.012.862/0001-60, Brazil.

Up to

More than 90 days

More than one to

More than three to

More than

Annual

Tax No.

Creditor

Creditor country

Currency

days

to one year

three years

five years

Total

Nominal value

Amortization

Effective rate

Nominal rate

Financial leases

ThUS$

0-E

NATIXIS

France

US$

510

1,530

9,886

- -

11,926

Quarterly

- -

TOTAL

510

1,530

9,886

- -

11,926

Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2025 Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2, Chile.

Tax No.	Creditor	Creditor country	Currency	Up to 90 days	More than 90 days to one year	More than one to three years	More than three to five years	More than five years	Total	Nominal value	Amortization	Annual Effective Nominal rate rate
				ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		%	%
Lease Liability
AIRCRAFT		OTHERS	US$	174,401	577,354	1,272,385	1,027,954	1,829,616	4,881,710	3,574,027	-	-	-
OTHER ASSETS OTHERS			US$	4,726	13,773	36,544	27,416	95,744	178,203	127,549	- - -
			CLP	300	878	2,325	2,325	19,758	25,586	22,433	- - -
			UF	1,508	4,261	9,817	7,852	6,143	29,581	25,862	- - -
			COP	493	1,431	1,305	-	-	3,229	3,028	- - -
			EUR	28	24	29	1	-	82	75	- - -
			BRL	3,289	9,858	17,971	14,020	10,827	55,965	39,675	- - -
			MXN	38	101	84	2	-	225	212	- - -
Trade and other accounts payables
- OTHERS OTHERS			US$	1,328,751	2,383	-	-	-	1,331,134	1,331,134	- - -
			CLP	200,784	1,806	-	-	-	202,590	202,590	- - -
			BRL	973,006	649	-	-	-	973,655	973,655	- - -
			Other currency	173,295	4,172	-	-	-	177,467	177,467	- - -
Accounts payable to related parties currents
Foreign Qatar Airways		Qatar	US$	-	2,375	-	-	-	2,375	2,375	- - -
Foreign Delta Air Lines, Inc.		U.S.A	US$	-	5,332	-	-	-	5,332	5,332	- - -
Total				2,860,619	624,397	1,340,460	1,079,570	1,962,088	7,867,134	6,485,414

Total consolidated 2,979,235 1,025,334 2,602,046 3,222,827 3,690,760 13,520,202 10,768,178

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