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]

LATAM Airlines Group (NYSE:LTM) 2025 Investor Day Summary Company Overview - **Company**: LATAM Airlines Group - **Event**: 2025 Investor Day - **Date**: December 09, 2025 Key Industry Insights - **Market Position**: LATAM is the largest airline group in South America, holding a significant market share of 30% in the region and over 40% in international flights within South America [23][24] - **Growth Potential**: South America has a population of approximately 436 million, with a low trips per capita of 0.5 compared to 4 in the U.S., indicating substantial growth potential in air travel [40][56] - **Revenue Forecast**: LATAM is forecasting $14.5 billion in revenues for 2025, with an 8% growth in capacity [55] Core Business Strategies - **Integrated Value Proposition**: LATAM focuses on combining people, product, premium revenues, cost efficiency, financial strength, and digitalization to drive sustainable growth [2][3] - **Customer-Centric Approach**: The company emphasizes dependability, care, and choice in its customer value proposition, aiming to enhance customer loyalty and satisfaction [41][42] - **Network Strategy**: LATAM is enhancing its presence in key airports, leading in four out of five major airports in South America, which concentrate 60% of the traffic [58][61] Financial Performance - **EBITDA and Margins**: LATAM reported over $4 billion in EBITDA with close to 30% EBITDA margins, and expects operating margins above 16% [10] - **Cost Management**: The company has achieved a 68% lower cost ex-fuel per available seat kilometer (ASK) compared to major competitors in Europe and the U.S. [30] - **Financial Strength**: LATAM has a solid financial structure with $1.5 billion in free cash flow and liquidity close to 30% of its last 12-month revenue [19] Customer Experience Enhancements - **NPS Improvement**: LATAM has a net promoter score (NPS) in the mid-50s, with premium travelers scoring 59 points, indicating strong customer loyalty [27] - **Service Innovations**: The introduction of exclusive services for top-tier customers, such as personalized check-ins and enhanced lounge experiences, has been well received [46][48] - **Sustainability Initiatives**: LATAM has received recognition for sustainability efforts, including the removal of single-use plastics on board [45] Digital Transformation - **Technology Integration**: LATAM is transforming its operations by integrating technology into its organizational structure, focusing on improving customer journeys and operational efficiency [31][32] - **AI Utilization**: The company has implemented AI in customer service, with 31% of calls now handled by AI, leading to improved customer satisfaction and reduced costs [33] Future Outlook - **Premium Revenue Growth**: LATAM's premium revenues grew by 14% in 2025, outpacing total revenue growth, driven by an expanding loyalty program and enhanced service offerings [59] - **Market Expansion**: The airline plans to expand its international network, adding new routes to Europe and increasing frequencies in key markets [63] Conclusion - LATAM Airlines Group is positioned for continued growth through a focus on customer experience, operational efficiency, and strategic market expansion, leveraging its strong financial foundation and commitment to sustainability.