LATAM Airlines Group (LTM) investor relations material

Market environment and demand trends

• Entered 2026 with strong demand across all segments, including premium and corporate travel, despite geopolitical tensions and rising oil prices.

• Revenue growth is outpacing capacity increases, with recent weeks showing accelerated revenue despite global conflicts.

• The competitive landscape remains rational, with capacity discipline and price increases in response to higher fuel costs.

• Brazil and Colombia markets are stable, with Brazil showing leadership in capacity and corporate share, and Colombia stabilizing after prior overcapacity.

• LATAM is positioned to benefit from market shifts, with a strong balance sheet and leading market share in key regions.

Cost management and technology initiatives

• Maintained cost per ASK constant since 2019, achieving a 16-17% reduction versus 2019 when adjusted for inflation and FX.

• Ongoing cost control is embedded in daily operations, with 500-700 initiatives running to offset macro impacts.

• Technology and organizational changes are driving operational improvements, with decentralized IT and integration into business units.

• Maintenance planning improvements yielded $200 million in incremental assets from a $4 million investment.

• Focus remains on leveraging technology for further efficiency, not just AI but broader digital transformation.

Fleet strategy and expansion

• Introducing Embraer E2s to enhance network capillarity, open new routes, and eventually replace older A319s.

• Expecting delivery of first E2 in October, with a dozen by year-end and full impact in 2027.

• 41 aircraft arriving in 2026, including E2s, A320s, and 787s, with supply chain issues improving but not fully resolved.

• E2s offer better unit cost than A319s and will support efficiency gains as fleet transitions.

• Flexibility to expand E2 fleet with 50 options, with future growth decisions to be made post-2027.