LATAM Airlines Group S.A.

Hello everyone. Thank you for joining us and welcome to the second quarter 2026 Latham Airlines Group earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. Before I turn the call over to the 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 Latham 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 the call, please note that for the media this is a listen-only call. I will now hand the conference over to Ricardo Bottas, CFO. Mr. Bottas, please go ahead.

Thank you. Hello, everyone, and good morning. Welcome to our second quarter 2026 conference. And thank you all for joining us today. Here with me is Roberto Alvo, our CEO, Andrés del Valle, Corporate Finance Director, and Tori Creighton, Head of Investor Relations. And we will present the highlights and results for the second quarter 2026. I'll hand it over to Roberto to share his opening remarks. Roberto.

Good morning. Thank you, Ricardo. The second quarter of 2026 was an important demonstration of the resilience of LATAM Group's business model. During this period, the industry faced one of the sharpest increases in jet fuel prices in recent years, creating a significant cost headwind across the sector. As we estimated back in May alongside our first quarter publication, the impact of higher jet fuel prices was in excess of $700 million in addition to in the second quarter alone. Yet, despite this environment, LATAM delivered profitable results, reflecting an adjusted operating margin of 5.4%, which was also on the higher end of the estimate that we had made of mid to low single digits back then. These results are not explained by a single initiative. They are the outcome of a business that has been consistently strengthened over the last several years to perform across different environments, which starts with a dedicated effort to care for our customers, constantly improving their experience and making them willing to experience LATAM. In addition to this, a diversified business structure integrating our passenger, cargo, and LATAM Pass businesses Together with an effective commercial strategy, a competitive cost structure, a strong balance sheet, and above all, the commitment of more than 43,000 employees across the group, enable ATAM's agile response while maintaining a focus on profitability. Throughout the quarter, this ecosystem delivered exactly what it was designed to deliver. Customer preference remains strong across the network, particularly in the premium segment, which now accounts for 29% of the passenger revenues, allowing the group to partially offset higher fuel costs through deferred adjustments while preserving healthy demand. At the same time, cargo, loyalty, and other ancillary sources of revenue diversification reinforce the resilience of the model during a particularly challenging period. Diversification only becomes an asset when it's supported by effective execution, and LATAM has consistently demonstrated that capability. During the period, the group rapidly activated multiple commercial operation initiatives to mitigate the impact of higher fuel prices while continuing to invest in customer experience, operational reliability, and the long-term competitiveness of the business. Financial strength also remained a key enabler, particularly in such a volatile environment. A strong balance sheet and healthy liquidity over 26% of last month's revenues provided LATAM with the flexibility to navigate a period of heightened uncertainty without losing focus on its long-term strategy and value-creating objectives. As we enter the second half of 2026, the environment remains highly dynamic. The significant swings in jet fuel prices we have seen over the last few weeks are a clear reminder of that volatility continues to be present. The second quarter provided us with one of the most severe fuel crises in the industry has experienced in recent years, and we believe we have navigated it well. We don't expect that price volatility to decrease during the remainder of the current quarter. In this sense, we remain cautious, although this quarter also reinforced our confidence in the group's ability to navigate this challenging environment. As we now enter what is seasonally a stronger half of the year for the business, we do so with the confidence that comes from having demonstrated the resilience of our business model. LATAM Group has commercial and financial tools Operational flexibility, and most importantly, the people and the mindset to continue adapting effectively, navigating volatility and creating long-term value. Finally, regarding guidance, given the information we gathered in the past quarter, and therefore better visibility, we are reinstating our full list of parameters, and we have improved our outlook for the year. However, it is important to note that because of the high fuel price volatility, these numbers should not will be only seen as our expectations given the stated assumptions, but also as an understanding of the resilience of the model in the current environment. With that said, I'll hand it over to Ricardo to go over specifics of LATAM's performance during the quarter.