[Form 6-K Filing Overview](index=1&type=section&id=Form%206-K%20Filing%20Overview) This section provides an overview of LATAM Airlines Group S.A.'s Form 6-K filing, detailing administrative information and a material fact exhibit [Filing Details](index=1&type=section&id=Filing%20Details) This section outlines the administrative details of the Form 6-K filing by LATAM Airlines Group S.A., a foreign private issuer, indicating its compliance with SEC reporting requirements - LATAM Airlines Group S.A. filed a Form 6-K as a foreign private issuer[1](index=1&type=chunk) Filing Information | Detail | Value | | :----- | :---- | | Registrant Name | LATAM Airlines Group S.A. | | Commission File Number | 1-14728 | | Filing Type | Form 20-F | | Filing Date | June 2025 | [Exhibit 99.1 Material Fact](index=2&type=section&id=Exhibit%2099.1%20Material%20Fact) The Form 6-K includes Exhibit 99.1, which is identified as a 'Material Fact,' indicating the disclosure of significant information to investors Exhibit Details | Exhibit No. | Description | | :---------- | :---------- | | 99.1 | Material Fact | [Signatures](index=4&type=section&id=Signatures) This section confirms the official authorization and signatory details for the Form 6-K filing [Authorization and Signatory Details](index=4&type=section&id=Authorization%20and%20Signatory%20Details) This section confirms the due authorization and signing of the Form 6-K report by an authorized representative of LATAM Airlines Group S.A - The report was duly signed on behalf of LATAM Airlines Group S.A. by an authorized individual[6](index=6&type=chunk) Signatory Information | Detail | Value | | :----- | :---- | | Date | June 27, 2025 | | Name | Juan Carlos Menció | | Title | Legal and Compliance Vice President |

Core Insights - The article highlights the importance of the Zacks Rank system in identifying winning stocks through earnings estimates and revisions [1] - Value investing is emphasized as a popular strategy for finding undervalued stocks that offer profit potential [2] - The Style Scores system is introduced as a tool for investors to identify stocks with specific traits, particularly in the "Value" category [3] Company Analysis: Japan Airlines (JAPSY) - Japan Airlines has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating strong investment potential [4] - The stock's current P/E ratio is 8.22, significantly lower than the industry average of 10.57, suggesting it may be undervalued [4] - JAPSY's P/B ratio is 1.26, compared to the industry's average of 3.15, further indicating attractive valuation [5] - The P/CF ratio for JAPSY is 4.88, which is lower than the industry average of 6.56, highlighting its strong cash flow outlook [6] Company Analysis: LATAM Airlines Group (LTM) - LATAM Airlines Group also holds a Zacks Rank of 1 (Strong Buy) and an A for Value, making it another strong candidate for value investors [7] - The Forward P/E ratio for LATAM is 8.46, which is favorable compared to the industry average of 10.57, indicating potential undervaluation [7] - The PEG ratio for LATAM is 0.57, significantly lower than the industry average of 1.00, suggesting strong growth potential relative to its valuation [7] - LATAM's P/B ratio is 12.23, which is much higher than the industry average of 3.15, indicating a different valuation perspective [8] Investment Outlook - Both Japan Airlines and LATAM Airlines Group are identified as likely undervalued stocks based on their financial metrics and earnings outlook [9]

Company Overview - Flex LNG (FLNG) is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating strong analyst sentiment and an improving earnings outlook [3] - The Zacks Consensus Estimate for FLNG's full-year earnings has increased by 12.1% over the past three months, reflecting positive revisions in earnings estimates [3] Performance Comparison - Year-to-date, Flex LNG has gained approximately 6.4%, outperforming the average loss of 7.8% in the Transportation sector [4] - In comparison, LATAM (LTM), another outperforming stock in the Transportation sector, has returned 37.8% year-to-date [4] Industry Context - Flex LNG is part of the Transportation - Shipping industry, which consists of 36 companies and currently holds a Zacks Industry Rank of 186, with an average gain of 0.5% this year [5] - In contrast, LATAM belongs to the Transportation - Airline industry, which has seen a decline of 10.7% this year and is ranked 57 [6]

Group 1 - The analyst has over 20 years of experience covering airlines, specifically LATAM Airlines (NYSE: LTM), and anticipated that many airlines would seek Chapter 11 protection during the Covid pandemic due to high debt and fixed costs impacting cash flow [1] - The analyst has a diverse background in analyzing various industries including airlines, oil, retail, mining, fintech, and e-commerce, along with macroeconomic, monetary, and political factors [1] - The analyst has lived through multiple crises, including the tequila crisis, the dot-com bubble, 9/11, the Great Recession, and the Covid-19 pandemic, which has contributed to a robust base of experience applicable across multiple disciplines [1] Group 2 - The analyst holds a beneficial long position in the shares of LTM through stock ownership, options, or other derivatives, indicating a personal investment in the company [2] - The article expresses the analyst's own opinions and is not influenced by compensation from any company mentioned [2]

Company Performance - LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) for May 2025 [1] - LATAM Airlines experienced a 7.2% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 13% increase in Brazil's domestic capacity [2][10] - The consolidated traffic for LATAM Airlines increased by 9.6% year over year, leading to a consolidated load factor rise of 1.8 percentage points to 83.1% in May 2025 [3][10] Industry Comparison - Other airlines, such as Ryanair and Volaris, also reported traffic increases for May 2025, indicating a positive trend in air travel demand [4][8] - Ryanair transported 19.6 million passengers in May 2025, reflecting a 4% year-over-year increase, with a load factor of 95% [5][6] - Volaris reported a 9% year-over-year increase in consolidated capacity, with a 4.2% increase in passengers transported, although its load factor decreased by 4.3 percentage points to 81.8% [9]

Core Viewpoint - LATAM Airlines Group (LTM) is experiencing strong demand and operational growth, leading to positive share performance and investment opportunities [1]. Upsides for LTM - Earnings estimates for LTM have been revised upward by 33.3% for the current quarter and 22.3% for 2025, indicating broker confidence [2]. - The company's share price has significantly outperformed the Zacks Transportation – Airline industry's growth of 20.4% over the past year [3]. Growth Factors - In Q1 2025, LATAM Group expanded its consolidated capacity by 7.3%, driven by a 10.7% increase in international operations, and transported nearly 21 million passengers, a 3.6% increase from Q1 2024 [6]. - LATAM achieved a record Net Promoter Score (NPS) of 56, reflecting improved customer satisfaction, particularly among premium travelers who rated their experience with an NPS of 61 [7]. Solid Zacks Rank - LATAM Airlines Group currently holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [5].

Market Overview - Wall Street experienced significant gains in May, with the S&P 500 increasing by 6.2% and the Nasdaq rising by 9.6%, marking the best month for both indices since late 2023 [1] - Investor optimism was fueled by a temporary pause on new trade tariffs announced by Trump, alleviating fears regarding trade tensions with China and the EU [1] Geopolitical Risks - Despite the temporary relief, the threat of tariffs remains, as China accused the U.S. of violating their trade truce by tightening controls on AI chip exports and student visas, which has raised tensions again [2] - The interconnectedness of the U.S. and Chinese economies means that even minor disputes can significantly impact market stability [2] Investment Strategy - In uncertain times, investors are turning to value investing, focusing on companies with strong fundamentals that are undervalued [3] - Value stocks with high earnings yield can provide attractive returns, especially during periods of market volatility [4] Earnings Yield - Earnings yield is calculated by dividing a company's annual earnings per share (EPS) by its current stock price, indicating potential returns for investors [5] - A higher earnings yield suggests a stock may be undervalued compared to its peers, while a lower yield may indicate overvaluation [5][7] Stock Screening Criteria - A primary screening criterion for selecting stocks is an earnings yield greater than 10%, supplemented by estimated EPS growth, average daily volume, and current price thresholds [8][9][10] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform their peers [10] Selected Value Stocks - Five value stocks with earnings yields exceeding 10% have been identified as appealing options amid rising U.S.-China tensions: AngloGold Ashanti (AU), Orchid Island Capital (ORC), LATAM Airlines (LTM), Priority Technology (PRTH), and Allianz (ALIZY) [11] - All five stocks show strong projected EPS growth through 2026 and meet liquidity, price, and growth criteria [11] Company Highlights - **AngloGold Ashanti (AU)**: Expected earnings growth of 95% in 2025 and 6.7% in 2026, with a Zacks Rank of 1 and a Value Score of A [12] - **Orchid Island Capital (ORC)**: Projected earnings growth of 394% in 2025 and 24.5% in 2026, Zacks Rank 1, Value Score B [13] - **LATAM Airlines (LTM)**: Anticipated earnings growth of 27.5% in 2025 and 20% in 2026, Zacks Rank 1, Value Score A [14] - **Priority Technology (PRTH)**: Expected earnings growth of 108% in 2025 and 34% in 2026, Zacks Rank 1, Value Score A [15] - **Allianz (ALIZY)**: Projected earnings growth of 16.4% in 2025 and 9% in 2026, Zacks Rank 1, Value Score B [16]

Core Investment Strategy - Value investing is highlighted as a reliable strategy during market volatility, allowing investors to purchase stocks at discounted prices when others sell [1][2] Value Investment Drawbacks - The concept of "value traps" is introduced, where stocks may underperform due to persistent issues rather than temporary problems [3] - Common metrics for value investing include dividend yield, P/E, and P/B ratios, which help identify discounted stocks [3] Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is emphasized as a crucial metric for assessing a stock's intrinsic value [4][5] - A low PEG ratio is preferred, but it has limitations, such as not accounting for changing growth rates over time [5] Screening Criteria for Value Stocks - Effective screening criteria for value stocks include: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of less than or equal to B [6] Selected Stocks - Urban Outfitters (URBN) is a lifestyle retailer with a Zacks Rank 1 and a five-year historical growth rate of 20% [9][8] - Dentsply Sirona (XRAY) is a leader in dental products with a Zacks Rank 2 and a long-term expected growth rate of 7.4% [10][11] - LATAM Airlines (LTM) offers extensive air transportation services with a Zacks Rank 1 and a five-year expected growth rate of 14.8% [11][12] - Exelixis (EXEL) focuses on cancer therapies with a long-term expected earnings growth rate of 21% and a Zacks Rank of 2 [12][13]

Company Performance - Knot Offshore (KNOP) has gained approximately 15.6% year-to-date, significantly outperforming the Transportation sector, which has returned an average of -8.3% [4] - The Zacks Consensus Estimate for KNOP's full-year earnings has increased by 34% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] Industry Comparison - Knot Offshore is part of the Transportation - Shipping industry, which consists of 36 individual stocks and currently ranks 173 in the Zacks Industry Rank. This industry has experienced an average loss of 6.3% year-to-date, further highlighting KNOP's superior performance [5] - In contrast, LATAM (LTM), another stock in the Transportation sector, has achieved a year-to-date return of 37% and belongs to the Transportation - Airline industry, which is ranked 136 and has declined by 10.6% year-to-date [4][6] Zacks Rank - Knot Offshore currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock in the near term [3] - LATAM has a Zacks Rank of 1 (Strong Buy), with its current year EPS consensus estimate increasing by 22% over the past three months [5]

Core Insights - LATAM Airlines Group S.A. has experienced a significant resurgence, driven by strong financial performance and strategic enhancements, positioning it as an attractive investment opportunity [1] Financial Performance - In Q1 2025, LATAM reported revenues of $3.41 billion, a 2.7% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.38 billion [2] - The airline's earnings for the period were $1.18, significantly exceeding the Zacks Consensus Estimate of 61 cents [2] - LATAM transported 21 million passengers during this period, reflecting a 3.6% increase from the previous year [3] Growth Projections - The airline has revised its available seat kilometer (ASK) growth forecast for 2025 to between 7.5% and 9.5%, up from the previous estimate of 7% to 9% [4] - In April, LATAM transported over 6.7 million passengers, marking a 7.6% increase compared to the same month last year [4] Infrastructure and Market Developments - Significant infrastructure investments in Latin America, such as upgrades to São Paulo-Guarulhos International Airport and new airports in Mexico City and Tulum, are enhancing connectivity and operational efficiency [5] - The World Travel & Tourism Council projects that Latin America's travel and tourism sector could contribute nearly $260 billion to the region's economy over the next decade, benefiting LATAM through increased passenger volumes [5] Competitive Positioning - LATAM holds a Zacks Rank 1 (Strong Buy) and has outperformed its Zacks Peer Group with a 36.8% growth over the past six months [6] - The airline is enhancing customer experience through fleet upgrades, expanded Wi-Fi capabilities, and the introduction of premium economy and new business class cabins, achieving a Net Promoter Score (NPS) of 56, the highest in its history [6] Sustainability Commitment - LATAM has been recognized in the S&P Global Sustainability Yearbook for its strong environmental, social, and governance (ESG) practices, reinforcing its commitment to sustainable growth [7] Strategic Outlook - The airline's strategic network expansion, fleet modernization, enhanced customer service, and operational efficiency position it as a leader in the Latin American aviation market, presenting a promising opportunity for investors [10]