LATAM Airlines Group S.A.

Good day and thank you for standing by. Welcome to first quarter LATAM Airlines group earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. Before I turn the call over to management, I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations. and as such constitute forward-looking statements any matters discussed today that are not historical facts particularly comments regarding the company's future plans objectives unexpected performance or guidance are forward-looking statements These statements are based on a range of assumptions that LATAM believes are reasonable but are subject to uncertainties and risks that are discussed in detail in the recently published 20F Earnings Release, Financial Statements, and Related CMF and SEC Filings. The company's actual results may differ significantly from those projected or suggested and any forward-looking statements due to a variety of factors which are discussed in detail in our SEC filings. And if there are any members of the press on the call, please note that for the media, this is a listen-only call. I would now like to hand the conference over to your speaker today, Ramiro Alfonsín, CFO of LATAM Airlines Group. Please go ahead. Thank you, Gigi. Hello, everyone, and good morning.

Welcome to our first quarter 2024 conference call, and thank you for joining us today. My name is Ramiro Alfonso, and I'm the CFO of Latam Airlines Group. Here with me today is Mr. Roberto Albo, CEO of Latam Airlines Group, Mr. Andres Del Valle, VP of Corporate Finance, and Tori Creighton, all of the industrial relations, and we will present our highlights and results for the first quarter of 2024. I'd like to pass the presentation to Roberto to set the stage for our first quarter results.

Thank you, Ramiro, and good morning, everyone. Yesterday, we made our first quarter results public, which were strong, reflecting not only our unique network footprint, the strength of our frequent flyer program, our solid financial foothold, and good operational execution, but also with growing clarity, a strong customer preference for LATAM. Before continuing, I want to take a moment to express my gratitude to the more than 35,000 people in our group. They are LATAM's most valuable asset, and it is they who make really things happen. Their passion, dedication, and commitment are what drives and will drive LATAM's success. Every day we strive to make traveling a more distinctive experience by not only offering our customers a unique value proposition, but also ensuring that they are properly served at every touchpoint of their journey in a caring and dependable way. Certainly, this is a demanding task as the group transports over 220,000 passengers per day, 100,000 bags, and 2,500 tons of cargo day in, day out. But we have set ourselves ambitious goals to make sure we succeed in making customers feel that we meet all their traveling needs and we enable their destination dreams to become true as they decide to travel every day. During this quarter, we have seen solid operational performance. The group transported a record-breaking number of 20.2 million passengers, achieving a robust load factor of 84.4%. These numbers were accompanied by a complete recovery of LATAM's group capacity as compared to 2019. The affiliates of Latam Group continue to rank first in three of the five domestic markets. Notably, Latam Airlines Brazil reached a record domestic market share of 41% in March, the highest on the last 11 years. However, it is important to acknowledge that the industry is still facing important challenges. Significant issues related to aircraft and engine durability, persistent aircraft delivery delays, parts and high and volatile fuel prices due to global geopolitical factors, among other issues, define a complex operating environment. Despite these obstacles, Latam revenues continue to show positive figures, and our passenger ex-fuel cost remains contained at a stable 4.3 cents per ESK, the same figure as for the full year of 2023. In the light of these achievements, revenues for the quarter reached $3.3 billion, with solo double-digit adjusted EBIT marking of 13.9%. Our adjusted EBITDA was just shy of $800 million, and our net income reached $258 million. Furthermore, we have continued to make improvements in our capital structure. For the fifth consecutive quarter, we had a positive increase in cash, achieving a cash generation of $137 million and bringing total liquidity to approximately US $3 billion with an adjusted net leverage of 1.9 times. I would like to highlight that our consistent positive results have been recognized by the rating agencies. Moody has upgraded the Tamarin Group to BA3 with a stable outlook, and S&P has given the company a B-plus rating with a positive outlook. Fenner, who is one of our local rating agencies, has upgraded us to triple B with a positive outcome. This is an important recognition in my view of the solid track records in Chapter 11 emergence that happened on this day 18 months ago. Looking into the second quarter, we see healthy booking figures. However, it is important to remember that second quarter is our seasonally slower period for the year. And unlike last year where the post-pandemic demand recovery overshadowed seasonality, we see good figures for the second quarter of 2024. Taking all these factors into consideration, we're providing new guidance for the full year 2024. This guidance includes higher ranges for adjusted EBITDA with improved growth prospects in different segments, stable costs, and better capital structures. Regarding some of our most important recent announcements, on April 25th, our shareholders approved a dividend distribution of approximately $175 million, which will be paid on May 16th. Finally, last month, Latam's board approved the initiation of the reopening and relisting process for the New York Stock Exchange, subject to market and other conditions. The company has started this process and is actively engaged, and it will be certain to keep the market informed of advances. These improvements and these advancements are the result of years of effort. We're proud of our results, and Natambu continues trading each of its defined areas, ensuring safety, quality, customer service, dependability, care, and seeking efficiency, environmental care, and social well-being. I look forward to discussing progress on these and other areas in the upcoming course. Thank you for your time. I'd like to turn the call over to Ramiro to further discuss our financial and operational results.