LATAM Airlines Group S.A.

Hello and welcome everyone to the 1Q2026 LATAM Airlines Group Earnings Conference call. My name is Becky and I will be your operator today. 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-2026 guidance, 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 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.

Hello, everyone. Good morning. Welcome to our first quarter 2026 conference call and thank you all for joining us today. My name is Ricardo and I'm CFO of the LATAM Airlines Group. Here with me is Roberto Alvo, our CEO, Andres Del Valle, Corporate Finance Director, and Tory Creighton, Head of Investor Relations. And we will present the highlights and results for the first quarter of 2026. I'll hand it over to Roberto to share his opening remarks.

Good morning, everyone, and thank you, Ricardo. Let me begin. LATAM began delivering a very strong set of results, which reflect the consistency of the execution and the structural strengths of the model built over the past years. During the first quarter, LATAM grew capacity by 10.4% and transported close to 23 million passengers, while maintaining a solid load factor of 85.3%, demonstrating once again its ability to grow efficiently and capture demand across the network. The strong operational performance translated into record financial results. Revenue reached $4.1 billion, adjusted EBITDA was $1.3 billion, and the adjusted operating margin was close to 20%. The highest quarterly figure in the company's history, resulting in a net income of $576 million, reflecting both revenue strength and disciplined cost execution. These results were supported by continued progress in revenue quality, doing also by solid execution, well tailored product differentiation, strong customer preference, and a continuous increase in the contribution of premium revenues. This reflects a trend that has been building consistency over the recent quarters as LATAM's business model is delivering on the expected results. Even though the conflict in the Middle East pushed up jet fuel prices sharply starting in March, given the timing of fuel consumption, price lagging mechanisms and partial hedges, this increase did not materially impact the first quarter financial results. LATAM expects, however, these higher fuel prices to be reflected in the second quarter of this year. As fueling prices increased, LATAM Group began implementing fair adjustments in most of its network, as well as executing targeted capacity reductions. To date, the demand environment remains strong and stable, and these commercial actions are partially mitigating the higher fuel expenses. Looking forward, we face the upcoming months with a combination of optimism and caution. Optimism because, over the last years, LATAM has built a very resilient model. Its passengers and cargo business integration, together with the presence of LATAM's group, has in most markets operates. The strength of the loyalty program, the design and delivery of the passenger experience, both on board and throughout the journey. The focus on premium traffic and less elastic segments of demand. Its competitive cost. the strength of its balance sheet and liquidity, and most importantly, the quality and commitment of its people, are all features that are unique to LATAM in the region and provide a true advantage and a potential source of future opportunity. Caution, on the other side, because the environment remains extremely uncertain and variables that significantly affect the business are outside of LATAM's control. However, LATAM's track record in navigating complex environments is well proven at this time, and the group really trusts its abilities. In this volatile context, LATAM has taken a prudent approach to its guidance, as will be discussed in more detail later in the presentation. Extraordinarily, given the circumstances, the company has decided to replace its full year 2026 guidance with a more focused set of metrics. With that said, I'll hand it over to Ricardo, who will walk us through the performance of the first quarter together with a look into LATAM's group relative and absolute strengths.