Financial Data and Key Metrics Changes - LATAM Airlines Group reported total revenues of $3.9 billion, an increase of 17.3% year over year, driven by growth in both passenger and cargo segments [16] - Passenger revenues rose by 18.5%, with premium traveler revenues increasing by more than 15% compared to the same period last year [17] - Adjusted operating margin expanded to 18.1%, while adjusted EBITDA reached $1.15 billion during the quarter, and net income totaled $379 million, up 26% year over year [8][18] Business Line Data and Key Metrics Changes - LATAM transported over 22.9 million passengers, with a consolidated load factor of 85.4% [8] - In Brazil, LATAM Airlines Brazil grew capacity by over 12% year over year, launching six new domestic routes [11] - The Spanish-speaking affiliates saw passenger RASC increase by 18% year over year, indicating strong performance in these markets [11] Market Data and Key Metrics Changes - The international segment showed stable demand, although the South America to the U.S. route experienced softer demand, primarily in leisure travel [27][30] - Domestic markets remained healthy, except for Chile, where industry traffic figures were stable compared to last year [12] - LATAM's international operations from Colombia were noted to be small and not significantly impacting overall international traffic [50] Company Strategy and Development Direction - LATAM is focused on maintaining disciplined execution and controlling costs while enhancing customer experience through product improvements [5][14] - The company announced the launch of a new Premium Comfort Class, set to roll out in 2027, to provide more choices for passengers [15] - LATAM's strategy includes a commitment to sustainability, as evidenced by the acquisition of 74 Embraer E2 aircraft, which will improve fuel efficiency by 30% per seat [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the prospects for the remainder of the year, despite softer demand in certain international segments [28] - The company anticipates high single-digit consolidated capacity growth for the next year, supported by a focus on efficiency and a robust fleet delivery schedule [14][21] - LATAM's financial strength and disciplined approach to capital allocation are seen as strategic assets that will enable the company to pursue growth opportunities [20] Other Important Information - LATAM executed a share repurchase program totaling $433 million, reflecting its disciplined capital allocation strategy [9][20] - The company ended the quarter with a liquidity level of 25.8% and an adjusted net leverage ratio of 1.5 times, aligning with its financial policy [20] Q&A Session Summary Question: International performance compared to Brazil and Spanish-speaking countries - Management noted stable and healthy demand in most international segments, with softer demand observed in South America to the U.S. primarily affecting leisure travel [27][30] Question: Update on the Brazilian law regarding free baggage - The law allowing passengers to carry a bag without charge has passed the lower chamber and is pending in the Senate, affecting both domestic and international flights [32][33] Question: Relevance of premium experience investments on revenue growth - Premium revenue is growing faster than capacity, contributing significantly to the improvement in RASC, driven by better execution and product enhancements [45][46] Question: Impact of international traffic slowdown in October - The slowdown is attributed to softer demand into the U.S. for leisure travel, not fundamentally affecting overall demand [51] Question: Order book and booking curve for next year - LATAM expects high single-digit ASK growth for 2026, with a total fleet of around 410 aircraft by year-end [60][62] Question: Lower percentage of hedge fuel this quarter - The current hedge fuel coverage is standard and consistent with past practices, with expectations for increases as the quarters progress [66][68] Question: Potential impact of the pallet strike in Chile - Management currently has no clarity on the potential impact of the strike and will provide updates as necessary [73]

Financial Data and Key Metrics Changes - LATAM Airlines Group reported total revenues of $3.9 billion, an increase of 17.3% year over year, driven by growth in both passenger and cargo segments [15][16] - Adjusted operating margin expanded to 18.1%, with adjusted EBITDA reaching $1.15 billion during the quarter, and net income totaling $379 million, up 26% year over year [8][17] - Passenger revenues rose by 18.5%, with premium traveler revenues increasing by more than 15% compared to the same period last year [16] Business Line Data and Key Metrics Changes - LATAM transported over 22.9 million passengers, with a consolidated load factor of 85.4% [8] - Passenger RASC increased by 8.4% year over year in US dollars, reflecting strong operational performance [11] - Cargo revenues grew by 6.3%, contributing to the overall revenue increase [16] Market Data and Key Metrics Changes - LATAM Airlines Brazil grew capacity by over 12% year over year, launching six new domestic routes [11] - In Spanish-speaking countries, LATAM's affiliates saw passenger RASC increase by 18% year over year [11] - The international segment maintained high load factors, although demand to the U.S. was noted to be softer, particularly in leisure travel [24][36] Company Strategy and Development Direction - LATAM is focused on profitable growth, operational excellence, and maintaining cost control as key pillars of its strategy [16][18] - The company is committed to enhancing customer experience through initiatives like the new Premium Comfort Class and the inauguration of a new lounge in Lima [14][13] - LATAM's fleet modernization strategy includes the acquisition of up to 74 Embraer E2 aircraft, which will improve regional connectivity and fuel efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue improving and delivering on its purpose of elevating customer journeys [6] - The outlook for 2025 includes a focus on high single-digit consolidated capacity growth, supported by a healthy demand environment [21][22] - Management acknowledged external factors affecting international traffic, particularly leisure travel to the U.S., but remained optimistic about overall demand [24][36] Other Important Information - LATAM executed a share repurchase program totaling $433 million, reflecting a disciplined approach to capital allocation [9][19] - The company ended the quarter with an adjusted net leverage ratio of 1.5 times, aligning with its financial policy [19] - LATAM was recognized as a five-star global airline for 2026 by APEX, marking the fourth consecutive year of receiving this distinction [14][15] Q&A Session Summary Question: International performance compared to Brazil and Spanish-speaking countries - Management noted stable and healthy demand in most international segments, with softer demand to the U.S. linked to leisure travel preferences [24][25] Question: Update on Brazil's legislation regarding free baggage - Management confirmed that a law allowing free baggage and seat selection was passed by Brazil's lower chamber but is pending Senate approval [25][26] Question: Impact of premium experience investments on revenue growth - Management indicated that premium revenue is growing faster than capacity, contributing significantly to overall revenue improvements [31][32] Question: Reasons for growth slowdown in international traffic - Management attributed the slowdown to softer demand for leisure travel to the U.S., rather than a fundamental decline in demand [36] Question: Future capital allocation strategy - Management emphasized that business development and growth opportunities will take precedence in capital allocation decisions [29][30]