LATAM Airlines Group (LTM) Investor Day 2024 summary

Strategic positioning and market leadership

• Holds the largest airline group status in Latin America and the Southern Hemisphere, with over 340 aircraft and more than 2x the market share of its nearest competitor, ranking as the 10th largest globally.

• Operates three main hubs (Lima, São Paulo, Santiago), connects South America globally, and maintains an expansive network of 149 destinations in 26 countries, supported by joint ventures and codeshare agreements with 57 airlines.

• Nearly half of South American passengers fly with the group, reflecting increased market share across all affiliates and routes.

• Leverages a robust frequent flyer program with 48 million members, ranking #7 globally.

• Focuses on revenue diversification, asset flexibility, and premium product offerings to capture growth and adapt to demand shifts.

Financial performance and guidance

• Reported nearly $13 billion in revenue and $2.8 billion EBITDA in the last 12 months, with 17% and 37% growth respectively over the prior period.

• Maintains a strong balance sheet with net leverage at 1.6x–1.9x, targeting below 1.7x by year-end, and liquidity at 27% of revenues.

• Issued 2024 guidance for $3–$3.15 billion EBITDA, capacity growth of 15–16% YoY, and high single-digit ASK growth for 2025.

• Locked in favorable fleet costs through 2029, with 90% of prices fixed, and expects total fleet cash out to remain a competitive advantage.

• Projects over $1 billion in levered free cash flow for 2025, maintaining a minimum 30% dividend payout and targeting a BB+ credit rating.

Operational excellence and cost leadership

• Achieved durable cost savings of $1.3 billion annually, with CASK ex-fuel 40% below global full-service peers.

• On-time performance consistently above 80%, ranking among the top 3 most punctual global airline groups.

• Operates with fewer employees than in 2019 while delivering more capacity, aided by digital transformation and in-house MRO capabilities.

• Implements predictive maintenance and digital tools, targeting over $100 million in additional cost savings in the next three years.

• Maintains a flexible, modern fleet with over 120 new aircraft on order through 2030, supporting up-gauging and sustainability initiatives.