LATAM Airlines Group S.A.

Hello and welcome everyone to the 2Q 2025 LATAM Airlines Group earnings conference call. My name is Becky and I'll be your operator today. During the presentation, you can register a question by pressing star followed by one on your keypad. If you change your mind, please press star followed by two. 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, and expected 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 published 20F-2025 updated guidance earning 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. If there are any members of the press on this call, please note that for the media this is a listen-only call. I will now hand over to your host. Ricardo Bottas, CFO, to begin. Please go ahead.

Thank you. Hello, everyone, and good morning. Welcome to our second quarter 2025 conference call, and thank you all for joining us today. My name is Ricardo Bottas, and I am the CFO of Latam Airlines Group. Here with me is Roberto Alvo, our CEO, Andres Del Valle, the Corporate Finance Director, and Tory Creighton, Head of Investors Relations. and we will present our highlights and results for the second quarter. I've handed over to Roberto to share opening remarks about the quarter highlights. Once finished, I will present them in more detail alongside the financial results. Roberto.

Thank you, Ricardo. Good morning, everyone, and thank you for joining us today. I'm pleased to open our second quarter 2025 earnings call. by saying that LATAM Group continues to sustain growth and profitability once again, delivering robust results, a clear indication of the strength of the group's operating model, its commercial strategy, and above all, the extraordinary commitment of its people and the relentless dedication to improve the customer experience every day. Let me start with a few headline numbers. During the second quarter, LATAM Group transported over 20.5 million passengers, Eduardo Ochoa- expanded capacity by 8.3% year over year and reach consolidated low factor of 83.5% all while maintaining operations stability and growing customer preference across all markets. Eduardo Ochoa- In terms of the time group product and experience the focus is on strengthening the value proposition in every flight every interaction and every decision that is made. Eduardo Ochoa- This quarter, we have a few updates in investments we're making customer experience that Ricardo will comment on which are supporting improved levels of customer satisfaction. During the quarter, LATAM Group's net promoter score matched the record high achieved in the first quarter of 2025. Additionally, in June, at the 2025 Skytrax World Airline Awards, LATAM was named the best airline in South America for the sixth year in a row and best airline staff in South America for the fourth consecutive year. These awards are based on over 22 million passenger votes from more than 100 nationalities, and they reflect not just operational excellence, but trust, service, and consistency. From a financial standpoint, LATAM delivered another quarter of strong and balanced performance. Total revenues grew by 8.2% year over year, supported by healthy trends in both passenger and cargo segments. This top line expansion, combined with disciplined cost control and a favorable fuel environment growth, and adjusted EBITDA of $850 million with a margin of 25.9%, reflecting a strong 5.5 percentage point improvement from the same period last year. LATAM also reached a record second quarter adjuster operating margin with 12.9%, a 3.9 percentage point improvement from the second quarter 2024, a clear sign of how strategy and execution are delivering results. Net income reached to 242 million, marking a 66% increase year over year, That figure brings first half net income to nearly $597 million. These results are particularly significant when considering the context of ongoing macroeconomic volatility across several of our key markets. They highlight the strength of the group's diversified and flexible business model, the ability to adapt to shifting external conditions, and the discipline focused on both operational execution and financial strength. This performance also supported a robust capital structure with $3.6 billion in liquidity and a 1.6 times adjusted net leverage, even after returning $445 million to shareholders through dividends and the repurchase of 1.6% of Latam's capital on the Santiago Stock Exchange. Looking ahead, current booking trends remain solid across both domestic and international markets, providing additional confidence in the demand environment for the coming quarters and reinforcing the outlook for the second half of the year. This is expressed in its improvements in most dimensions of LATAM's group full-year 2025 guidance, narrowing the ranges given improved visibility for the year. This revision reflects the strength of the group's commercial momentum, driving more high-quality traffic through its network, the flexibility of its operating model, and the disciplined approach to cost and investment that continues to guide the decision-making. Ricardo will later elaborate a little bit more on these changes. During the quarter, the group incorporated 12 aircraft, including 10 A320neos, one A321neo, and one wide-body Airbus 330 operating under a short-term lease. With this, LATAM Group is on track with its fleet plan and has received 14 of the 26 aircraft scheduled for delivery in 2025. At the same time, and consistent with the strategy, business development, and demand growth currently being experienced, medium-term opportunities for incremental growth have been identified in most markets where LATAM Group affiliates operate. In this context, during the quarter, 11 additional A320neo family aircraft were secured for delivery in 2026, along with a decision to delay the progressive retirement of four of our 319 aircraft. Moreover, there may be potential opportunities for further growth over the next two to three years. In this context, LATAM Group is analyzing the acquisition of additional aircraft from various manufacturers and the source. This includes additions to its wide-body and narrow-body fleet, the latter including aircraft from the A320 family as well as other similar jets from manufacturers such as Airbus and Embraer. The primary focus of these additions will be to serve and grow passenger transportation within the region and cargo traffic in regional markets. As might be expected, the materialization of these options depends, of course, on several factors, including aircraft availability and the evolution of the markets in which the group operates. The group continues nonetheless to maintain significant flexibility to adjust capacity if we need to. Building on LATAM's strong results, in June, shareholders approved a broader repurchase program of up to 3.4% of total shares. As part of that program, a second share repurchase for up to 2.4% of the company's outstanding shares is currently being executed through a 30-day pro rata mechanism on the Santiago Stock Exchange and is expected to conclude by the end of this month. We also carried out the final step in optimizing our non-fleet financial debt. In June, we fully eliminated our interest debt from 2022, high interest debt, I may recall, refinancing 700 million of high-cost notes with a new $800 million issuance at significantly low rates. This is expected to generate $33 million in annual interest savings. In summary, we're very pleased to share with you the strong second quarter, the results, and the confident and positive view on the remainder of 2025. Thank you again for being here today. I'll hand it over to Ricardo for the operational and financial review. Thank you, Roberto.