Financial Data and Key Metrics Changes - Total revenues reached almost $4 billion, increasing 16.3% year-over-year, driven by a 20.3% rise in the passenger segment [10] - Adjusted EBITDA for the quarter was $1.1 billion, representing a 30.4% increase compared to 4Q 2024, while net income totaled $484 million, increasing 78.1% year-over-year [10] - Adjusted operating margin improved to 16.7% for the quarter and 16.2% for the full year, reflecting a 3.5 percentage point margin expansion [10][19] Business Line Data and Key Metrics Changes - The group transported over 87 million passengers in 2025, with 23 million in the 4th quarter, supported by an 8.2% capacity increase for the year [5][6] - Passenger RASC increased by 11.7%, indicating strong demand and effective pricing strategies [11] - Cargo revenues declined 9.6% in the 4th quarter due to a high comparison base from 2024, but full-year cargo revenues increased year-over-year [10] Market Data and Key Metrics Changes - Domestic capacity in Brazil expanded by 12%, with passenger RASC growth of 14% in U.S. dollars [12] - In domestic Spanish-speaking markets, passenger RASC grew by 23% in dollars, driven by disciplined capacity allocation [13] - International segment capacity and passenger volumes grew at a high single-digit pace, maintaining a healthy load factor of 85% [13][14] Company Strategy and Development Direction - LATAM's strategy focuses on enhancing customer experience, operational efficiency, and disciplined cost control, supported by a strong balance sheet [4][8] - The company plans to invest in customer experience improvements, fleet renewal, and digital transformation initiatives [22][26] - LATAM aims for continued profitable growth in 2026, projecting capacity growth of 8%-10% and an adjusted operating margin between 15%-17% [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand outlook for 2026, with no significant concerns noted for the first quarter [33] - The company highlighted the importance of a strong local currency for its operations, as most revenues are in local currency while a significant portion of costs is in dollars [36] - LATAM enters 2026 with solid momentum and a strong foundation to create long-term value, despite potential fuel and currency volatility [8][29] Other Important Information - LATAM generated $1.4 billion in cash after covering business-related commitments, with a total of $605 million in dividends distributed for the year [22][29] - The company received 26 aircraft in 2025 and expects to receive 41 aircraft in 2026, with a CapEx plan of $1.7 billion net of financing [26][39] Q&A Session Summary Question: Can you provide additional details on how yields are tracking across the regions? - Management noted strong and stable demand across all business areas, with a slight slowdown in domestic Chilean demand towards the end of 2025, but recovery is expected in early 2026 [32] Question: How should we think about the impact of a weaker US dollar on LATAM's performance? - A stronger local currency is generally more positive for LATAM, as most revenue is in local currency while costs are in dollars, benefiting domestic markets [36] Question: Can you clarify the impact of the $400 million dividend on net debt? - The dividend distribution was not included in previous guidance, leading to a net debt increase above expectations [48] Question: What is the expected deployment strategy for the new Embraer E2 aircraft? - The E2s will be deployed in Brazil's domestic market, targeting new routes and increasing frequency on existing routes [52] Question: How do you see cargo yields evolving in 2026? - Management does not foresee significant issues in cargo demand, with expectations for stable unit revenues despite seasonal fluctuations [60]

Financial Data and Key Metrics Changes - Total revenues reached almost $4 billion, increasing 16.3% year-over-year, driven by a 20.3% rise in the passenger segment [11] - Adjusted EBITDA for the quarter was $1.1 billion, representing a 30.4% increase compared to Q4 2024 [11] - Net income totaled approximately $484 million, increasing 78.1% compared to the same quarter last year [11] - Adjusted operating margin improved to 16.7% for the quarter, with a full-year adjusted operating margin of 16.2%, reflecting a 3.5 percentage point increase year-over-year [11][19] Business Line Data and Key Metrics Changes - The passenger segment saw a revenue increase of 20.3%, while cargo revenues declined by 9.6% due to a high comparison base from Q4 2024 [11] - LATAM Airlines Brazil's domestic capacity expanded by 12%, with passenger RASC growing by 14% in U.S. dollars [13] - In domestic Spanish-speaking affiliate markets, passenger RASC grew by 23% in dollars, driven by disciplined capacity allocation [14] - International segment capacity and passenger volumes grew at a high single-digit pace, with unit revenues increasing by 6% [14] Market Data and Key Metrics Changes - The group transported more than 87 million passengers during 2025, with 23 million in Q4 alone, supported by an 8.2% capacity increase for the year [6][11] - The Net Promoter Score reached a record 54 points, a three-point increase from 2024, indicating strong customer satisfaction [6] - The Organizational Health Index reached 83 points, placing LATAM Group in the top decile of the global benchmark for the first time [6] Company Strategy and Development Direction - LATAM's strategy focuses on people, customer experience, disciplined cost control, and a resilient balance sheet, which has led to consecutive years of margin expansion [9][19] - The company plans to continue investing in customer experience, fleet renewal, and efficiency-focused innovations in 2026 [26] - LATAM aims to grow capacity by 8%-10% in 2026 while maintaining an adjusted operating margin between 15%-17% [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite fuel and currency volatility, expecting strong performance in 2026 [9][20] - The booking curve for early 2026 looks healthy, with no concerns regarding demand across all segments [33] - The company anticipates stable corporate demand and continued market share growth in the corporate sector [78] Other Important Information - LATAM generated $3.3 billion in adjusted operating cash flow during 2025, enabling significant capital allocation initiatives [20] - The company distributed $400 million in interim dividends in Q4, bringing total dividends for the year to approximately $605 million [21] - LATAM's liquidity reached $3.7 billion by the end of 2025, with adjusted net leverage at 1.5 times, below the maximum policy level [24] Q&A Session Summary Question: Can you provide additional details on how yields are tracking across the regions? - Management noted strong and stable demand across all business areas, with a slight slowdown in domestic Chilean demand towards the end of 2025, but recovery is expected in early 2026 [31][33] Question: How should we think about the impact of a weaker US dollar on LATAM's performance? - A stronger local currency is generally more positive for LATAM, as most revenue is in local currency while a significant portion of costs is in dollars [36] Question: Can you refresh us on how we should think about CapEx in 2026? - LATAM expects to receive 41 aircraft in 2026, with CapEx projected at $1.7 billion net of financing [38] Question: Can you elaborate on the net debt coming in at $5.9 billion, which was above guidance? - The difference was primarily due to the $400 million dividend distribution, which was not included in the previous guidance [50][51] Question: What is the breakdown of LATAM's debt? - Almost 100% of LATAM's debt is in U.S. dollars, with only a small portion in local currency [87]

Results Presentation Fourth Quarter and Full Year 2025 February 4, 2026 Disclaimer Neither the United States Securities and Exchange Commission ("SEC") nor the Chilean Comisión para el Mercado Financiero (the "CMF") nor any securities commission of any other U.S. or non- U.S. jurisdiction has reviewed, approved or disapproved of this Presentation, or determined that this Presentation is truthful or complete. No representations or warranties, express or implied, are given in, or in respect of, this Presentat ...

Core Insights - LATAM Airlines Group (LTM) reported a year-over-year increase in revenue passenger-kilometers (RPK) for December 2025, indicating solid air traffic growth across its network [1][8]. Capacity and Operations - LATAM Airlines experienced a 10.9% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 13.9% increase in international operations and an 11.9% growth in domestic capacity in Brazil [2]. - The airline launched 10 new routes in December, including two long-haul international routes: Santiago–Buenos Aires (Ezeiza)–Miami and Guayaquil–New York [2]. Traffic and Passenger Metrics - Consolidated traffic, measured in RPK, increased by 10.5% year-over-year in December, with LATAM Airlines Brazil's domestic market reporting a 12.4% growth [3]. - LATAM Airlines transported 7.9 million passengers in December 2025, reflecting a 7.6% year-over-year increase, and a total of 87.4 million passengers across its network in 2025, marking a 6.6% increase year-over-year [4][8]. Market Presence - In 2025, LATAM Airlines launched eight new destinations, bringing its total to 160 passenger destinations across 27 countries [5]. - The five routes with the highest number of daily flights included Cusco–Lima and Sao Paulo (Congonhas)–Rio de Janeiro (Santos Dumont) [5]. Financial Performance - LATAM Airlines holds a Zacks Rank 1 (Strong Buy), with shares gaining 38.8% in the past six months, outperforming the Zacks Airline industry, which increased by 22.8% [6].

Core Viewpoint - LATAM (LTM) is identified as a promising momentum stock, currently holding a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy) [3][4][12] Price Performance - Over the past week, LTM shares have increased by 4.21%, outperforming the Zacks Transportation - Airline industry, which rose by 1.79% [6] - In a longer time frame, LTM's monthly price change is 5.51%, compared to the industry's 5.15% [6] - Over the past quarter, LTM shares have risen by 27.59%, and over the last year, they have increased by 113.27%, while the S&P 500 has only moved 3.7% and 19.07% respectively [7] Trading Volume - LTM's average 20-day trading volume is 605,016 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for LTM have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $4.73 to $4.93 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions [10] Conclusion - Given the positive price performance, trading volume, and earnings outlook, LTM is positioned as a strong buy and a solid momentum pick for investors [12]

Group 1 - Dollar General Corporation (DG) has seen a 5.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.7%, compared to the industry average of 0.9% [1] - LATAM Airlines Group S.A. (LTM) has experienced a 4.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 1.6%, compared to the industry average of 0.0% [2] - The Estée Lauder Companies Inc. (EL) has seen a 1.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Company Performance - JB Hunt (JBHT) has returned 5.8% year-to-date, outperforming the average return of 4.4% for Transportation companies [4] - The Zacks Consensus Estimate for JBHT's full-year earnings has increased by 4.2% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] Industry Comparison - JB Hunt is part of the Transportation - Truck industry, which includes 12 companies and is currently ranked 184 in the Zacks Industry Rank. The average return for this group is -0.3% year-to-date, showing JBHT's superior performance [6] - LATAM (LTM), another Transportation stock, has returned 4.7% year-to-date and belongs to the Transportation - Airline industry, which has seen a return of +20.1% this year [5][6] Zacks Rank - JB Hunt holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] - LATAM also has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 4.5% over the past three months [5]

Core Insights - LATAM Airlines Group (LTM) shares have surged 28.8% over the past three months, outperforming the Zacks Transportation sector's 19.3% rise [1][9] Growth Strategy - LTM targets 8-10% passenger capacity growth for 2026 while maintaining operating margins of 15-17% [3][9] - The company emphasizes expansion in faster-growing international markets and selective domestic increases while controlling unit costs [3] Financial Performance - LTM aims to lift adjusted EBITDA to $4.2-4.6 billion and generate over $1.7 billion in levered free cash flow, keeping net leverage at or below 1.4x [4] - The company maintains ample liquidity above US$5 billion and continues to invest in technology and customer experience for long-term growth [4] Fleet Expansion - LATAM Airlines plans to expand its fleet from 363 aircraft at the end of 2025 to 371 in 2026, with a focus on narrow-body aircraft growth [5] - The narrow-body fleet is expected to increase from 284 to 291, 329, and 343 aircraft, driven by an increase in Airbus Neo aircraft [5] - Wide-body capacity will expand more selectively, while the cargo fleet remains stable at 20 aircraft [6] Earnings Estimates - The Zacks Consensus Estimate for Q4 2025, full-year 2025, and full-year 2026 has been revised upward by 3.05%, 4.23%, and 4.5% respectively over the past 60 days [10]

Core Viewpoint - LATAM Airlines Group S.A. (NYSE:LTM) is recognized as a promising investment opportunity with strong earnings growth projected for 2026, supported by positive performance metrics and favorable analyst ratings [1][4]. Group 1: Performance Metrics - In November 2025, LATAM Airlines transported 7.4 million passengers, marking a 4.9% year-over-year increase, and a total of 79.6 million passengers from January to November [1]. - The company expanded its consolidated capacity by 4.6% year-over-year, driven by an 11.4% increase in domestic capacity in LATAM Airlines Brazil and a 4.0% growth in international operations [2]. - Consolidated traffic, measured in revenue passenger-kilometers (RPK), grew by 3.6% in November, with LATAM Airlines Brazil's domestic market showing a significant 12.1% year-over-year increase, resulting in a load factor of 85.4% [3]. Group 2: Analyst Ratings and Price Targets - Barclays reaffirmed a Buy rating for LATAM Airlines and set a price target of $60.00 on December 10, following the positive monthly statistics [1]. - Goldman Sachs raised its price target for LATAM Airlines to $58.50 from $50.90 on December 5, maintaining a Buy rating and indicating potential for a 14% dividend yield in 2026 [4].

Core Insights - The transportation sector in 2025 has faced challenges due to tariff issues, supply-chain crises, and low freight demand, compounded by geopolitical tensions and a prolonged U.S. government shutdown. However, declining oil prices and cost-cutting measures have positively impacted profitability [1]. Industry Overview - Oil prices are expected to remain low in 2026, benefiting transportation stocks as fuel costs are a significant expense for these companies. The average price of West Texas Intermediate crude is projected at $65.32 per barrel in 2026, down from $76.60 in 2025. Jet fuel costs are also expected to decrease to $88 per barrel in 2026 from $90 in 2025, with the total fuel bill anticipated to be $252 billion in 2026 [2][3]. Macroeconomic Factors - The macroeconomic environment is showing signs of improvement as inflation in the U.S. is declining, despite remaining above the Federal Reserve's 2% target. The Fed has implemented three rate cuts in 2025, which may support the transportation sector [4]. Shipping Industry Insights - The shipping industry is expected to benefit from a supportive macro backdrop, with capsize bulk carriers positioned well due to strong demand for iron ore and bauxite. The recent increase in dry bulk rates is likely to continue into the next year [5]. Cost Control and E-commerce - Ongoing cost-control efforts amid soft freight demand are expected to enhance profitability. The strength of e-commerce continues to be a significant tailwind for the sector, while steady air travel demand is encouraging for airlines despite economic headwinds [6]. Stock Recommendations - Three transportation stocks are highlighted for potential investment: Expeditors International of Washington (EXPD), Global Ship Lease (GSL), and LATAM Airlines (LTM). These stocks carry Zacks Rank 1 (Strong Buy) or 2 (Buy) and are expected to deliver healthy returns [6]. Company Performance - Expeditors is benefiting from cost cuts and e-commerce strength, with a 7.6% EPS estimate increase for 2026. The company has a strong earnings surprise history, with an average surprise of 13.9% over the last four quarters [9][11]. - Global Ship Lease has a diversified fleet and has consistently outperformed earnings estimates, with a 16.8% average earnings beat and a 3.1% upward revision to its 2026 EPS view [9][12]. - LATAM Airlines is experiencing growth due to its lean cost structure and improved air travel demand, with a 4.5% upward revision to its 2026 EPS estimates and an average earnings surprise of 29.8% over the last four quarters [9][14].