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Airlines Group S.A. (LTM) posts higher 2025 profit, stronger equity base

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

Airlines Group S.A. reports sharply stronger 2025 results, with net income rising to ThUS$1,463,561 from ThUS$977,445 and revenue increasing to ThUS$14,265,056 from ThUS$12,833,043. Higher gross margin and operating income show improved underlying performance.

Total assets grew to ThUS$17,640,891, while equity almost doubled to ThUS$1,337,202, helped by retained earnings and a capital reduction tied to cancelling over 30 billion treasury shares. Cash from operating activities reached ThUS$3,737,096, comfortably funding heavy aircraft and fleet investment and dividends.

Positive

  • Stronger profitability: Net income rose to ThUS$1,463,561 from ThUS$977,445, with operating income improving to ThUS$2,335,538, showing better earnings power.
  • Balance sheet strengthening: Total equity increased from ThUS$711,329 to ThUS$1,337,202, supported by profits and a capital reduction tied to cancelling 30,221,893,878 treasury shares.
  • Robust cash generation: Operating cash flow reached ThUS$3,737,096, more than covering fleet investments and shareholder dividends while growing cash to ThUS$2,150,113.

Negative

  • None.

Insights

Profits, equity and cash generation all improved meaningfully in 2025.

Airlines Group S.A. delivered a strong rebound, lifting revenue to ThUS$14,265,056 and net income to ThUS$1,463,561. Operating income increased to ThUS$2,335,538, indicating better profitability after fuel, distribution, and administrative costs.

Equity rose to ThUS$1,337,202 from ThUS$711,329, supported by earnings and a share capital reduction following early cancellation of 30,221,893,878 treasury shares. This reshapes capital structure while keeping total liabilities high at ThUS$16,303,689, so leverage remains a central feature.

Cash from operating activities of ThUS$3,737,096 exceeded investing outflows of ThUS$1,579,823 and financing outflows of ThUS$2,019,573, allowing cash and equivalents to increase to ThUS$2,150,113 by December 31, 2025. Future filings may detail how this cash supports fleet, debt service, and shareholder returns.

Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________________
FORM 6-K
_________________________________________________________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
February 2026
Commission File Number 1-14728
_________________________________________________________________
LATAM Airlines Group S.A.
(Translation of Registrant’s Name Into English)
_________________________________________________________________
Presidente Riesco 5711, 20th floor
Las Condes
Santiago, Chile
(Address of principal executive offices)
_________________________________________________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F o



LATAM AIRLINES GROUP S.A.
The following exhibit is attached:
EXHIBIT NO.DESCRIPTION
99.1
Interim Consolidated Financial Statements
1

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 3, 2026LATAM AIRLINES GROUP S.A.
By:/s/ Ricardo Bottas
Name: Ricardo Bottas
Title:Chief Financial Officer
2


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LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025



    











CONTENTS

Consolidated Statements of Financial Position
Consolidated Statements of Income by Function
Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Equity
Consolidated Statements of Cash Flows - Direct Method
Notes to the Consolidated Financial Statements





CLP    -    CHILEAN PESO
UF    -    CHILEAN UNIDAD DE FOMENTO
ARS    -    ARGENTINE PESO
US$    -    UNITED STATES DOLLAR
THUS$    -    THOUSANDS OF UNITED STATES DOLLARS
MUS$    -    MILLIONS OF UNITED STATES DOLLARS
COP    -    COLOMBIAN PESO
BRL/R$    -    BRAZILIAN REAL
THR$        -     THOUSANDS OF BRAZILIAN REAL
PYG        -     PARAGUAYAN GUARANI











Contents of the Notes to the consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries.

Notes      Page

1 - General information..................................................................................................................................    1
2 - Summary of significant accounting policies ............................................................................................    5
2.1. Basis of Preparation ...........................................................................................................................    5
2.2. Basis of Consolidation ......................................................................................................................    6
2.3. Foreign currency transactions ...........................................................................................................    7
2.4. Property, plant and equipment ..........................................................................................................    8
2.5. Intangible assets other than goodwill ..................................................................................................9
2.6. Borrowing costs ................................................................................................................................    9
2.7. Losses for impairment of non-financial assets .................................................................................    9
2.8. Financial assets .................................................................................................................................    9
2.9. Derivative financial instruments and embedded derivatives ............................................................    10
2.10. Inventories.......................................................................................................................................    11
2.11. Trade and other accounts receivable ..............................................................................................    11
2.12. Cash and cash equivalents ..............................................................................................................    11
2.13. Capital .............................................................................................................................................    12
2.14. Trade and other accounts payables .................................................................................................    12
2.15. Interest-bearing loans ......................................................................................................................    12
2.16. Current and deferred taxes ..............................................................................................................    12
2.17. Employee benefits ..........................................................................................................................    13
2.18. Provisions .......................................................................................................................................    14
2.19. Revenue from contracts with customers .........................................................................................    14
2.20. Leases .............................................................................................................................................    15
2.21. Non-current assets (or disposal groups) classified as held for sale.................................................    16
2.22. Maintenance ....................................................................................................................................    16
2.23. Environmental costs ........................................................................................................................    17
3 - Financial risk management .....................................................................................................................    17
3.1. Financial risk factors ........................................................................................................................    17
3.2. Capital risk management ..................................................................................................................    30
3.3. Estimates of fair value ......................................................................................................................    30
4 - Accounting estimates and judgments......................................................................................................    32
5 - Segment information ..............................................................................................................................    35
6 - Cash and cash equivalents ......................................................................................................................    36
7 - Financial instruments .............................................................................................................................    37
8 - Trade and other accounts receivable current, and non-current accounts receivable ..............................    38
9 - Accounts receivable from/payable to related entities ............................................................................    40
10 - Inventories ............................................................................................................................................    41
11 - Other financial assets ...........................................................................................................................    42
12 - Other non-financial assets ....................................................................................................................    44
13 - Non-current assets and disposal group classified as held for sale.........................................................    45
14 - Investments in subsidiaries ..................................................................................................................    46
15 - Intangible assets other than goodwill ...................................................................................................    49
16 - Property, plant and equipment ..............................................................................................................    51
17 - Current and deferred tax .......................................................................................................................    58
18 - Other financial liabilities ......................................................................................................................    62
19 - Trade and other accounts payables .......................................................................................................    70
20 - Other provisions....................................................................................................................................    71
21 - Other non financial liabilities ...............................................................................................................    72
22 - Employee benefits ................................................................................................................................    73
23 - Accounts payable, non-current ............................................................................................................    77
24 - Equity ...................................................................................................................................................    77
25 - Revenue ................................................................................................................................................    86
26 - Costs and expenses by nature ...............................................................................................................    86
27 - Other income, by function ...................................................................................................................    87
28 - Foreign currency and exchange rate differences .................................................................................    88
29 - Earnings per share................................................................................................................................    94
30 - Contingencies .....................................................................................................................................    95
31 - Commitments .....................................................................................................................................    120
32 - Transactions with related parties ......................................................................................................    123
33 - Share based payments .......................................................................................................................    125



34 - Statement of cash flows ......................................................................................................................    128
35 - The environment ................................................................................................................................    131
36 - Events subsequent to the date of the financial statements ..................................................................    133






























































LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION




ASSETS
NoteAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Current Assets
Cash and cash equivalents6 - 72,150,113 1,957,788 
Other financial assets7 - 1170,544 67,295 
Other non-financial assets12236,071 203,661 
Trade and other accounts receivable7 - 81,381,869 1,163,707 
Accounts receivable from related entities7 - 97 25 
Inventories10458,566 438,530 
Current tax assets1775,704 40,275 
Total current assets other than non-current assets (or disposal groups) classified as held for sale4,372,874 3,871,281 
Non-current assets (or disposal groups) classified as held for sale1310,338 29,138 
Total current assets4,383,212 3,900,419 
Non-current assets
Other financial assets7 - 1152,139 53,772 
Other non-financial assets1293,517 89,416 
Accounts receivable7 - 813,950 12,342 
Intangible assets other than goodwill151,129,961 1,000,170 
Property, plant and equipment1611,947,014 10,186,697 
Deferred tax assets1721,098 10,549 
Total non-current assets13,257,679 11,352,946 
Total assets17,640,891 15,253,365 


The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.




















LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION



LIABILITIES AND EQUITY
LIABILITIESNoteAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Current liabilities
Other financial liabilities7 - 18745,303 635,213 
Trade and other accounts payables7 - 192,684,846 2,133,572 
Accounts payable to related entities7 - 97,707 12,875 
Other provisions208,413 14,221 
Current tax liabilities1731,950 6,281 
Other non-financial liabilities213,816,175 3,488,680 
Total current liabilities7,294,394 6,290,842 
Non-current liabilities
Other financial liabilities7 - 187,343,223 6,515,238 
Accounts payable7 - 23471,208 491,762 
Other provisions20674,611 623,846 
Deferred tax liabilities17338,674 312,677 
Employee benefits22181,579 167,427 
Other non-financial liabilities21— 140,244 
Total non-current liabilities9,009,295 8,251,194 
Total liabilities16,303,689 14,542,036 
EQUITY
Share capital244,418,110 5,003,534 
Retained earnings242,170,280 1,148,291 
Other equity2439 39 
Other reserves24(5,242,835)(5,428,597)
Parent’s ownership interest1,345,594 723,267 
Non-controlling interest14(8,392)(11,938)
Total equity1,337,202 711,329 
Total liabilities and equity17,640,891 15,253,365 



The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.










LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION


For the year ended December 31,
Note20252024
ThUS$ThUS$
Revenue5 - 2514,265,056 12,833,043 
Cost of sales26(10,104,884)(9,565,899)
Gross margin4,160,172 3,267,144 
Other income27229,934 200,669 
Distribution costs26(578,971)(606,207)
Administrative expenses26(870,484)(824,493)
Other expenses26(603,912)(459,842)
Other gains/(losses)26(1,201)(36,223)
Income from the operational activities2,335,538 1,541,048 
Financial income26146,275 142,411 
Financial costs26(721,416)(881,950)
Foreign exchange gains (losses)(141,485)172,917 
Result of indexation units(294)19,508 
Income before taxes1,618,618 993,934 
Income Tax (expense)17(155,057)(16,489)
NET INCOME FOR THE YEAR1,463,561 977,445 
Income attributable to owners of the parent company1,459,984 976,972 
Income attributable to non-controlling interest143,577 473 
NET INCOME FOR THE YEAR1,463,561 977,445 
EARNING PER SHARE
Basic earnings per share (US$)290.002477 0.001616 
Diluted earnings per share (US$)290.002477 0.001616 



The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.




LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


For the year ended at December 31,
Note20252024
ThUS$ThUS$
NET INCOME FOR THE YEAR1,463,561 977,445 
Components of other comprehensive income (loss) that will not be reclassified to income before taxes
Other comprehensive (loss), before taxes, gains (losses) by new measurements on defined benefit plans24(17,216)(21,769)
Total other comprehensive income (loss) that will not be reclassified to income before taxes(17,216)(21,769)
Income (loss) components of other comprehensive income that will be reclassified to income before taxes
Gains/(losses) for currency translation differences income (losses) on currency translation, before tax218,543 (379,186)
Other comprehensive income (loss), before taxes, currency translation differences218,543 (379,186)
Cash flow hedges
Income (loss) on cash flow hedges before taxes24(390)26,680 
Reclassification adjustment on cash flow hedges before tax24(5,854)(40,898)
Other comprehensive income (losses), before taxes, cash flow hedges(6,244)(14,218)
Change in value of time value of options
Income (losses) on change in value of time value of options before tax24(37,331)(34,568)
Reclassification adjustments on change in value of time value of options before tax2447,126 37,265 
Other comprehensive income (loss), before taxes, changes in the time value of the options9,795 2,697 
Total other comprehensive income (losses) that will be reclassified to losses before taxes222,094 (390,707)
Other components of other comprehensive income (loss), before taxes204,878 (412,476)
Income tax relating to other comprehensive income that will not be reclassified to income
Income tax relating to new measurements on defined benefit plans17662 909 
Income tax relating to other comprehensive income that will not be reclassified to income662 909 
Total Other comprehensive income (loss)205,540 (411,567)
Total comprehensive income (loss)1,669,101 565,878 
Comprehensive income (loss) attributable to owners of the parent company1,665,251 565,547 
Comprehensive income (loss) attributable to non-controlling interests3,850 331 
TOTAL COMPREHENSIVE INCOME (LOSS)1,669,101 565,878 

The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.


LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Attributable to owners of the parent
Change in other reserves
NoteShare
capital		Other
equity		Treasury
shares		Currency
translation
reserve		Cash flow
hedging
reserve		Gains
(Losses)
from changes
in the time
value of the
options		Actuarial
gains
or losses on
defined
benefit
plans
reserve		Shares
based
payments
reserve		Other
sundry
reserve		Total
other
reserve		Retained
earnings/(losses)		Parent’s
ownership
interest		Non-
controlling
interest		Total
equity
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Equity as of January 1, 2025 5,003,534 39 — (4,209,660)(52,896)35,644 (69,414)37,235 (1,169,506)(5,428,597)1,148,291 723,267 (11,938)711,329 
Total increase (decrease) in equity
Net income for the period24— — — — — — — — — — 1,459,984 1,459,984 3,577 1,463,561 
Other comprehensive income (loss) — — — 218,266 (6,244)9,795 (16,550)— — 205,267 — 205,267 273 205,540 
Total comprehensive income — — — 218,266 (6,244)9,795 (16,550)— — 205,267 1,459,984 1,665,251 3,850 1,669,101 
Transactions with shareholders
Dividends24— — — — — — — — — — (437,995)(437,995)— (437,995)
Increase (decrease) by transaction with treasury shares in portfolio24 (d)(585,424)— 585,424 — — — — — — — — — — — 
Increase (decrease) through transfers and other changes, equity24-34— — (585,424)— — — — — (19,505)(19,505)— (604,929)(304)(605,233)
Total transactions with shareholders (585,424)— — — — — — — (19,505)(19,505)(437,995)(1,042,924)(304)(1,043,228)
Closing balance as of December 31, 2025  4,418,110 39 — (3,991,394)(59,140)45,439 (85,964)37,235 (1,189,011)(5,242,835)2,170,280 1,345,594 (8,392)1,337,202 

The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.






LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Attributable to owners of the parent
Change in other reserves
NoteShare
capital		Other equityTreasury
shares		Currency
translation
reserve		Cash flow
hedging
reserve		Gains (Losses)
from changes
in the time
value of the
 options		Actuarial gains
or losses on
defined benefit
plans
reserve		Shares based
payments
reserve		Other
sundry
reserve		Total
other
reserve		Retained
earnings/(losses)		Parent’s
ownership
interest		Non-
controlling
interest		Total
equity
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Equity as of January 1, 20245,003,534 39 — (3,830,611)(38,678)32,947 (48,559)37,235 (1,170,016)(5,017,682)464,411 450,302 (12,027)438,275 
Total increase (decrease) in equity
Net income/(loss) for the period24— — — — — — — — — — 976,972 976,972 473 977,445 
Other comprehensive income— — — (379,049)(14,218)2,697 (20,855)— — (411,425)— (411,425)(142)(411,567)
Total comprehensive income— — — (379,049)(14,218)2,697 (20,855)— — (411,425)976,972 565,547 331 565,878 
Transactions with shareholders
Dividends24— — — — — — — — — — (293,092)(293,092)— (293,092)
Increase (decrease) through transfers and other changes, equity24 -33— — — — — — — — 510 510 — 510 (242)268 
Total transactions with shareholders— — — — — — — — 510 510 (293,092)(292,582)(242)(292,824)
Closing balance as of December 31, 2024 5,003,534 39 — (4,209,660)(52,896)35,644 (69,414)37,235 (1,169,506)(5,428,597)1,148,291 723,267 (11,938)711,329 


The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.


LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - DIRECT METHOD
For the year ended
December 31,
Note20252024
ThUS$ThUS$
Cash flows from operating activities
Cash collection from operating activities
Proceeds from sales of goods and services15,518,592 14,037,848 
Other cash receipts from operating activities192,905 212,750 
Payments for operating activities
Payments to suppliers for the supply goods and services(9,564,720)(9,458,249)
Payments to and on behalf of employees(1,830,249)(1,419,825)
Other payments for operating activities(386,561)(344,911)
Income taxes (paid)(144,987)(43,439)
Other cash inflows (outflows)34(47,884)122,153 
Net cash (outflow) inflow from operating activities3,737,096 3,106,327 
Cash flows from investing activities
Amounts raised from sale of property, plant and equipment102,031 97,303 
Purchases of property, plant and equipment34(1,775,818)(1,325,463)
Purchases of intangible assets34(104,483)(94,412)
Interest received136,429 118,437 
Other cash inflows (outflows)3462,018 34,469 
Net cash (outflow) inflow from investing activities(1,579,823)(1,169,666)
Cash flows inflow (out flow) from financing activities
Payments to acquire or redeem the entity's shares24(584,837)— 
Amounts raised from long-term loans341,349,140 1,750,060 
Loans repayments34(1,023,072)(2,004,542)
Payments of lease liabilities34(463,358)(344,038)
Dividends paid34(605,181)(174,838)
Interest paid34(600,740)(717,634)
Other cash (outflows) inflows34(91,525)(73,869)
Net cash inflow (outflow) from financing activities(2,019,573)(1,564,861)
Net (decrease) increase in cash and cash equivalents before effect of exchanges rate change137,700 371,800 
Effects of variation in the exchange rate on cash and cash equivalents54,625 (128,773)
Net (decrease) increase in cash and cash equivalents192,325 243,027 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR61,957,788 1,714,761 
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR62,150,113 1,957,788 

The accompanying Notes 1 to 36 form an integral part of these consolidated financial statements.

        1    



LATAM AIRLINES GROUP S.A. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2025

NOTE 1 - GENERAL INFORMATION

LATAM Airlines Group S.A. (“LATAM” or the "Company") is an open stock company which holds the values inscribed in the Registro de Valores of the Commission for the Financial Market, whose shares are listed in Chile on the Electronic Stock Exchange of Chile - Stock Exchange and the Santiago Stock Exchange. Additionally, during the third quarter of 2024, it relisted its American Depositary Receipts ("ADRs") on the New York Stock Exchange ("NYSE") in the United States of America.
Its main business is the air transport of passengers and cargo, both in the domestic markets of Chile, Peru, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe, Africa, Asia and Oceania . These businesses are developed directly or by its subsidiaries in Chile, Ecuador, Peru, Brazil, Colombia and Paraguay. In addition, the Company has subsidiaries that operate in the cargo business in Chile, Brazil and Colombia.
The Company is located in Chile, in the city of Santiago, on Avenida Presidente Riesco No. 5711, Las Condes commune.
As of December 31, 2025, the Company's statutory capital is represented by 574,219,895,457 ordinary shares without nominal value. As of that date, 574,215,983,709 shares were subscribed and paid. The foregoing, considering the capital increase approved by the shareholders of the company at an extraordinary meeting held on July 5, 2022, in the context of the implementation of its reorganization plan approved and confirmed in the Chapter 11 Proceedings, as well as the Capital decrease required for the Chilean Capital Markets law that appears in a public deed dated September 6, 2023, granted at the Notary of Santiago of Mr. Eduardo Javier Diez Morello, and the modification of the Company's by laws to account for said full capital reduction, agreed at an Extraordinary Shareholders meeting dated April 25, 2024, reduced to a public deed dated April 25, 2024, granted in the Notary of Santiago of Mr. Luis Eduardo Rodriguez Burr, an extract of which was registered in the Commercial Registry of the Registrar of Real Estate of Santiago on page 44,323 number 18,314 corresponding to the year 2024, and was published in the Official Gazette dated May 29, 2024. In addition, the current share capital structure reflects the early cancellation of 30,221,893,878 treasury shares previously issued by the Company and acquired under the share repurchase programs approved at the Extraordinary Shareholders’ Meetings held on March 17 and June 26, 2025. This capital optimization transaction, together with the corresponding reduction of share capital in the amount of US$585,424,212, was approved at the Extraordinary Shareholders’ Meeting held on October 17, 2025, the minutes of which were executed as a public deed dated October 17, 2025, granted before the Notary Public of Santiago, Mr. Eduardo Diez Morello. An excerpt thereof was registered in the Commercial Registry of the Santiago Real Estate Registrar under page 105,884, number 39,532, corresponding to the year 2025, and was published in the Official Gazette on November 15, 2025. As a result of such early cancellation of shares and the corresponding reduction of share capital, the Company’s share capital was adjusted from US$5,003,576,326.78 (represented by 604,441,789,335 shares of a single class without par value) to a final amount of US$4,418,152,114.78, divided into 574,219,895,457 shares of a single class, without par value.

The major shareholders of the Company, considering the total amount of subscribed and paid shares, are Banco de Chile on behalf of State Street which owns 20.99%, Delta Air Lines with 10.57% and Qatar Airways with 10.56% ownership interest.

As of December 31, 2025, the Company had a total of 2,061 shareholders in its registry. At that date, approximately 8.57% of the Company's capital stock was in the form of ADRs.

As of December 31, 2025, the Company had an average of 39,877 employees, ending this year with a total of 41,125 collaborator, distributed in 5,483 Administration employees, 20,883 in Operations, 9,868 Cabin Crew and 4,891 Command crew.


        2    

The main subsidiaries included in these consolidated financial statements are as follows:

a)Percentage ownership

Tax No.CompanyCountry
of origin		Functional
Currency		As December 31, 2025As December 31, 2024
DirectIndirectTotalDirectIndirectTotal
%%%%%%
96.969.680-0Lan Pax Group S.A. and SubsidiariesChileUS$99.9959 0.0041 100.0000 99.9959 0.0041 100.0000 
ForeignLatam Airlines Perú S.A.PeruUS$23.6200 76.1900 99.8100 23.6200 76.1900 99.8100 
93.383.000-4Lan Cargo S.A.ChileUS$99.8940 0.0041 99.8981 99.8940 0.0041 99.8981 
76.717.244-3Prime Cargo SpA.ChileCLP0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
ForeignConnecta CorporationU.S.A.US$0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
ForeignPrime Airport Services Inc. and SubsidiaryU.S.A.US$0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
96.951.280-7Transporte Aéreo S.A.ChileUS$0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
96.631.520-2Fast Air Almacenes de Carga S.A.ChileCLP0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
96.969.690-8Lan Cargo Inversiones S.A. and SubsidiaryChileUS$0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
96.575.810-0Inversiones Lan S.A.ChileUS$99.9000 0.1000 100.0000 99.9000 0.1000 100.0000 
96.847.880-KTechnical Training LATAM S.A.ChileCLP99.8300 0.1700 100.0000 99.8300 0.1700 100.0000 
ForeignLatam Finance LimitedCayman IslandUS$100.0000 0.0000 100.0000 100.0000 0.0000 100.0000 
ForeignPeuco Finance Limited (*)Cayman IslandUS$100.0000 0.0000 100.0000 100.0000 0.0000 100.0000 
ForeignProfessional Airline Services INC.U.S.A.US$100.0000 0.0000 100.0000 100.0000 0.0000 100.0000 
ForeignJarletul S.A.UruguayUS$0.0000 100.0000 100.0000 0.0000 100.0000 100.0000 
ForeignLatam Travel S.R.L.BoliviaUS$99.0000 1.0000 100.0000 99.0000 1.0000 100.0000 
76.262.894-5Latam Travel Chile II S.A.ChileUS$99.9900 0.0100 100.0000 99.9900 0.0100 100.0000 
ForeignLatam Travel S.A.ArgentinaARS94.0100 5.9900 100.0000 94.0100 5.9900 100.0000 
ForeignFaisán Finance DAC (*)IrelandUS$100.0000 0.0000 100.0000 100.0000 0.0000 100.0000 
ForeignTAM S.A. and Subsidiaries (**)BrazilBRL63.0987 36.9013 100.0000 63.0987 36.9013 100.0000 

(*)      These subsidiaries have no operations.

(**)     As of December 31, 2025, the indirect participation percentage of TAM S.A. and its Subsidiaries is from Holdco I S.A., a company which LATAM Airlines Group S.A. has a 100% share on economic rights and 51.04% of political rights. Its percentage arose as a result of the provisional measure No. 863 of the Brazilian government implemented in December of 2018 that allows foreign capital to have up to 100% of the share ownership of a Brazilian Airline.


        3    

b)Financial Information

Statement of financial position Net Income
For the year ended
December 31,
As of December 31, 2025As of December 31, 202420252024
Tax No.Company Assets LiabilitiesEquity Assets LiabilitiesEquity Gain /(loss)
ThUS$ ThUS$ThUS$ ThUS$ ThUS$ThUS$ ThUS$ ThUS$
96.969.680-0Lan Pax Group S.A. and Subsidiaries (*)549,409 2,048,197 (1,117,168)462,748 1,933,499 (1,092,261)(36,835)(122,763)
ForeignLatam Airlines Perú S.A.529,475 418,988 110,487 437,768 366,089 16,930 38,808 22,861 
93.383.000-4Lan Cargo S.A.578,756 318,492 260,264 490,550 263,747 226,803 34,617 27,238 
76.717.244-3Prime Cargo SpA.16,818 12,333 4,485 14,806 14,844 (38)135 (813)
ForeignConnecta Corporation37,884 10,717 27,167 47,583 15,255 32,328 (5,161)(5,936)
ForeignPrime Airport Services Inc. and Subsidiary (*)19,264 15,291 3,973 18,752 15,582 3,169 802 977 
96.951.280-7Transporte Aéreo S.A.234,376 141,333 93,043 238,354 121,609 116,745 (21,983)(10,064)
96.631.520-2Fast Air Almacenes de Carga S.A.30,055 18,951 11,104 25,783 19,771 6,005 4,256 3,675 
96.969.690-8Lan Cargo Inversiones S.A. and Subsidiary (*)264,655 145,918 (45,855)208,807 116,796 (66,907)21,728 6,010 
96.575.810-0Inversiones Lan S.A.1,208 48 1,160 1,184 48 1,136 25 (53)
96.847.880-KTechnical Training LATAM S.A.1,485 1,060 425 1,238 740 498 (64)205 
ForeignLatam Finance Limited111 208,620 (208,509)112 208,620 (208,508)(1)(1)
ForeignProfessional Airline Services INC.11,382 2,084 9,298 8,508 1,660 6,848 2,449 1,960 
ForeignJarletul S.A.9 1,101 (1,092)12 1,101 (1,089)(3)(4)
ForeignLatam Travel S.R.L.95 — 95 93 — 93 2 — 
76.262.894-5Latam Travel Chile II S.A.338 1,225 (887)358 1,243 (885)(2)(2)
ForeignLatam Travel S.A.4,323 1,807 2,516 3,847 1,623 2,091 422 (3,563)
ForeignTAM S.A. and Subsidiaries (*)4,963,316 3,167,385 1,794,199 4,070,469 2,557,042 1,512,327 553,684 673,648 


(*)    The Equity reported corresponds to Equity attributable to owners of the parent company, it does not include Non-controlling participation.

In addition, the following special purpose entities have been consolidated: (1) Chercán Leasing Limited, intended to finance advance payments of aircraft; (2) Yamasa Sangyo Aircraft LA1 Kumiai, Yamasa Sangyo Aircraft LA2 Kumiai; (3) Jin Shan 16; and (4) Star Rising Aviation 45 Limited, earmarked for aircraft financing. These companies have been consolidated as required by IFRS 10.

All entities over which LATAM has control have been included in the consolidation. The Company has analyzed the control criteria in accordance with the requirements of IFRS 10.

Changes occurred in the consolidation perimeter between January 1, 2024 and December 31, 2025, are detailed below:

(1)Incorporation or acquisition of companies


-On March 18, 2024, a capital reduction was carried out in Inversiones Aéreas S.A. through the absorption of accumulated losses in the sum of ThUS$175,140. As a consequence of this decrease in capital, the number of shares was reduced by 6,634,496, without modifying the original participation of its shareholders. This transaction did not generate any effect within the Consolidated Financial Statements.

-On May 14, 2024, a capital increase was carried out in Aerovías de Integración Regional S.A. by Holdco Colombia I SpA, for an amount of ThUS$45,271, equivalent to 10 shares and with a premiums for the issuance of shares in favor of the Holdco Colombia I SpA. As a result of this increase, there were no significant changes in the shareholder composition.

-On September 17, 2024, LATAM Airlines Group S.A acquired in 1 Euro, 100% of the rights of the company Faisán Finance Designates Activity Company, domiciled in Ireland, for the purposes of acquiring, managing, financing, refinancing, among others.



        4    


-On November 8, 2024, the Board of Directors of the subsidiary Connecta Corporation agreed the distribution and payment of dividends of ThUS$19,000 to Lan Cargo S.A., as sole shareholder. This transaction did not generate any effect within the Consolidated Financial Statements.

-At the Extraordinary General Shareholders' Meeting held on December 16, 2024 of the subsidiary Lan Argentina S.A., it was agreed to forgive the debt associated with the preferred dividends accrued and owed by this subsidiary to its shareholders, and to amend the company statute to eliminate the Class "B" Preferred Shares, replacing them in their entirety with ordinary shares. Accrued preferred dividends that were outstanding to shareholders amounted to ThUS$1,019 as of December 15, 2024. At this same Meeting, it was approved to amend the company statute to replace all preferred shares with ordinary shares, with the accrual of preferred dividends being null and void as of this date. This transaction did not generate any effect within the Consolidated Financial Statements.

-At the Extraordinary General Shareholders' Meeting held on December 16, 2024, of the subsidiary Inversora Cordillera S.A., it was agreed to forgive the debt associated with the preferred dividends accrued and owed by said subsidiary to its shareholders, and to amend the company statute to eliminate the Class "A" Preferred Shares, replacing them in their entirety with ordinary shares. The accumulated preferred dividends that were pending payment to shareholders amounted to ThUS$8,580. At this same Meeting, it was approved to amend the company statute to eliminate and replace preferred shares with ordinary shares, with the accrual of preferred dividends being null and void as of this date. This transaction did not generate any effect within the Consolidated Financial Statements.

-On December 17, 2024, a capital increase was carried out in Aerovías de Integración Regional S.A. by Holdco Colombia I SpA, for an amount of ThUS$18,544, equivalent to 10 shares and with a premiums for the issuance of shares in favor of the Holco Colombia I SpA. As a result of this increase, there were no significant changes in the shareholder composition.

-On January 27, 2025, Transportes Aéreos del Mercosur S.A. approved the distribution of total dividends for an amount of ThUS$6,056 (ThUS$5,752 paid to TAM S.A. and ThUS$304 paid to a non-controlling interest), corresponding to profits for the 2024 financial year. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.

-On February 3, 2025, a capital increase was made in Americonsult de Costa Rica S.A., through a the contribution of Americonsult, S.A. de C.V. of accounts receivable for ThUS$489; consequently, there were no significant changes in the shareholding composition, and therefore, did not generate any effect within the Consolidated Financial Statements.

-On February 28, 2025, a capital reduction was carried out at TAM S.A. through the absorption of accumulated losses and legal reserves, in the amount of ThUS$670,075. This transaction did not generate any impact effect within the Consolidated Financial Statements.

-On February 28, 2025, a capital reduction was carried out at TAM Linhas Aéreas S.A. through the absorption of accumulated losses and legal reserves, in the amount of ThUS$695,701. This transaction did not generate any impact effect within the Consolidated Financial Statements.

-On March 17, 2025, a capital reduction was carried out at Inversora Cordillera S.A. through the absorption of losses in the amount of ThUS$4,542. Consequently, there were no significant changes in the shareholding composition, and therefore, did not generate any impact effect within the Consolidated Financial Statements.

-On March 31, 2025, the clousure of Laser Cargo S.R.L.and Consorcio Fast Air Laser Cargo UTE, did not generate any impact effect within the Consolidated Financial Statements.

-On April 25, 2025, the Company Atlantic Aviation Investment LLC. was liquidated and its controller Lan Pax Group S.A. acquired all its assets, liabilities, rights and obligations, as a result of the liquidation. These transactions were carried out between entities under common control of LATAM Airlines Groups S.A. and, therefore, did not generate any effect within the Consolidated Financial Statements.

        5    


-On August 5, 2025, Americonsult de Guatemala was legally dissolved, did not generate any impact effect within the Consolidated Financial Statements.

-On August 28, 2025, Americonsult de Costa Rica S.A. was legally dissolved, did not generate any impact effect within the Consolidated Financial Statements.

-On September 9, 2025, TAM S.A. approved the distribution of a total dividend amounting to ThUS$105,376 (of whichThUS$95,684 was paid to LATAM Airlines Group S.A. and ThUS$9,692 was paid to Holdco I S.A.), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.

-On October 29, 2025, Multiplus Corretora de Seguros Limitada and Prismah Fidelidade Limitada merged with TAM Linhas Aéreas S.A., did not generate any impact effect within the Consolidated Financial Statements.

-On October 29, 2025, TP Franchising Limitada was absorbed by Fidelidade Viagens e Turismo S.A., which acquired all of its assets, liabilities, rights, and obligations. This transaction was carried out between entities of the LATAM Airlines Group S.A. and, therefore, had no effect on the Consolidated Financial Statements.

-On November 14,2025, Lan Cargo S.A., as sole shareholder, increased its capital in Prime Cargo SpA. by ThUS$4,077. This transaction did not generate any effect on the Consolidated Financial Statements.

-On December 16, 2025, TAM S.A. approved the distribution of a total dividend amounting to ThUS$366,788 (of which ThUS$323,578 was paid to LATAM Airlines Group S.A. and ThUS$43,210 was paid to Holdco I S.A.), corresponding to profits for the year 2025. Consequently, there were no significant changes in the shareholding composition related to this dividend distribution.




NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following describes the principal accounting policies adopted in the preparation of these consolidated financial statements.

2.1.    Basis of Preparation

These consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries as of December 31, 2025 and 2024, have been prepared in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards) and with the interpretations issued by the International Financial Reporting Standards Interpretations Committee (IFRIC IC).

The consolidated financial statements have been prepared under the historic-cost criterion, although modified by the valuation at fair value of certain financial instruments.

The preparation of the consolidated financial statements in accordance with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to use its judgment in applying the Company’s accounting policies. Note 4 describe the areas that imply a greater degree of judgment or complexity or the areas where the assumptions and estimates are significant to the consolidated financial statements.

These consolidated financial statements have been prepared in accordance with the accounting policies used by the Company in the preparation of the 2024 consolidated financial statements, except for the standards and interpretations adopted as of January 1, 2025.


        6    


(a)Application of new standards for the year 2025:
Accounting pronouncements with implementation effective from January 1, 2025:

Issuance DateEffective Date:
(i) Standards and amendments
Amendments to IAS 21: Lack of ExchangeabilityAugust 202301/01/2025
The application of these accounting standards as of January 1, 2025, had no significant effect on the Company's consolidated financial statements.




(b)     Accounting pronouncements not in force for the financial year beginning on January 1, 2025:


Issuance DateEffective Date:
(i) Standards and amendments
IFRS 18: Presentation and disclosures in the financial statementsApril 202401/01/2027
Amendment to IFRS 9 and IFRS 7: Classification and Measurement of Financial InstrumentsMay 202401/01/2026
IFRS 19 Subsidiaries without Public Accountability: DisclosuresMay 202401/01/2027
Amendments to Illustrative Examples on IFRS 7, IFRS 18, IAS 1, IAS 8, IAS 36 and IAS 37: Disclosures about Uncertainties in the Financial StatementsNovember 202501/01/2027

The Company's management is currently evaluating the potential impact of applying IFRS 18 Presentation and disclosure in Financial Statements on the consolidated financial statements. Furthermore, it is estimated that the adoption of the amendment to IFRS 19 Non-Publicly Owned Subsidiaries: Disclosures, and the amendments to IFRS 9 and IFRS 7, will not have a significant effect on the company's consolidated financial statements in the year of their initial adoption.



2.2.    Basis of Consolidation    

(a)    Subsidiaries

Subsidiaries are all the entities (including special-purpose entities) over which the Company has the power to control the financial and operating policies, which are generally accompanied by a holding of more than half of the voting rights. In evaluating whether the Company controls another entity, the existence and effect of potential voting rights that are currently exercisable or convertible at the date of the consolidated financial statements are considered. The subsidiaries are consolidated from the date on which control is passed to the Company and they are excluded from the consolidation on the date they cease to be so controlled. The results and cash are incorporated from the date of acquisition.

Balances, transactions and unrealized gains on transactions between the Company’s entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment loss of the

        7    

asset transferred. When necessary, in order to ensure uniformity with the policies adopted by the Company, the accounting policies of the subsidiaries are modified.

To account for and identify the financial information to be disclosed when carrying out a business combination, such as the acquisition of an entity by the Company, the acquisition method provided for in IFRS 3: Business combinations is used.

(b)    Transactions with non-controlling interests

The Group applies the policy of considering transactions with non-controlling interests, when not related to the loss of control, as equity transactions without an effect on income.

(c)    Sales of subsidiaries

When a subsidiary is sold and a percentage of participation is not retained, the Company derecognizes the assets and liabilities of the subsidiary, the non-controlling interest and other components of equity related to the subsidiary. Any gain or loss resulting from the loss of control is recognized in the consolidated income statement by function within Other gains/(losses).

If LATAM Airlines Group S.A. and Subsidiaries retain an ownership of participation in the disposed subsidiary which does not represent control, this is recognized at fair value on the date that control is lost and the amounts previously recognized in Other comprehensive income are accounted as if the Company had disposed directly the assets and related liabilities, which can cause these amounts to be reclassified to profit or loss. The percentage retained valued at fair value is subsequently accounted using the equity method.



2.3.    Foreign currency transactions

(a)    Presentation and functional currencies
    
The items included in the financial statements of each of the entities of LATAM Airlines Group S.A. and its Subsidiaries are valued using the currency of the main economic environment in which the entity operates (the functional currency). The functional currency of LATAM Airlines Group S.A. is the United States Dollar, which is also the presentation currency of the consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries.


(b)    Transactions and balances

Foreign currency transactions are translated to the functional currency using the exchange rates on the transaction dates. When there is no exchangeability between two currencies on the measurement date, the spot exchange rate on that date will be estimated. Foreign currency gains and losses resulting from the liquidation of these transactions and from the translation at the closing exchange rates of the monetary assets and liabilities denominated in foreign currency are shown in the consolidated statement of income by function except when deferred in Other comprehensive income as qualifying cash flow hedges.

(c)    Adjustment due to hyperinflation

After July 1, 2018, the Argentine economy was considered, for purposes of IFRS Accounting Standards, hyperinflationary. The consolidated financial statements of the subsidiaries whose functional currency is the Argentine Peso have been restated.

The non-monetary items of the statement of financial position as well as the income statement, comprehensive income and cash flows of the group's entities, whose functional currency corresponds to a hyperinflationary economy, are adjusted for inflation and re-expressed in accordance with the variation of the consumer price index ("CPI"), at each presentation date of its financial statements. The re-expression of non-monetary items is made from the date of initial recognition in the statements of financial position and considering that the financial statements are prepared under the historical cost criterion.

Net losses or gains arising from the re-expression of non-monetary ítems and income and costs are recognized in the consolidated income statement under "Result of indexation units".

        8    


Net gains and losses on the re-expression of opening balances due to the initial application of IAS 29 were recognized in the consolidated "Retained earnings/(losses)".

Re-expression due to hyperinflation will be recorded until the period or exercise in which the economy of the entity ceases to be considered as a hyperinflationary economy. At that time, the adjustments made by hyperinflation will be part of the cost of non-monetary assets and liabilities.

The comparative amounts in the consolidated financial statements of the Company are presented in a stable currency and are not adjusted for subsequent changes in the price level or exchange rates.

(d)    Group entities

The results and the financial situation of the Group's entities, whose functional currency is different from the presentation currency of the consolidated financial statements, of LATAM Airlines Group S.A., which does not correspond to the currency of a hyperinflationary economy, are converted into the currency of presentation as follows:

(i)    Assets and liabilities of each consolidated statement of financial position presented are translated at the closing exchange rate on the consolidated statement of financial position date;

(ii)    The revenues and expenses of each income statement account are translated at the exchange rates prevailing on the transaction dates, and

(iii)    All the resultant exchange differences by conversion are shown as a separate component in other comprehensive income, within "Gains/(losses) for currency translation differences income (losses) on currency translation, before tax".

For those subsidiaries of the group whose functional currency is different from the presentation currency and corresponds to the currency of a hyperinflationary economy; its restated results, cash flow and financial situation are converted to the presentation currency at the closing exchange rate on the date of the consolidated financial statements.

The exchange rates used correspond to those fixed in the country where the subsidiary is located, whose functional currency is different to the U.S. dollar.



2.4.    Property, plant and equipment

The land of LATAM Airlines Group S.A. and its Subsidiaries, are recognized at cost less any accumulated impairment loss. The rest of the Property, plant and equipment are recorded, both at their initial recognition and their subsequent measurement, at their historical cost, restated for inflation when appropriate, less the corresponding depreciation and any loss due to impairment.

The amounts of advances paid to the aircraft manufacturers are capitalized by the Company under Construction in progress until they are received.

Subsequent costs (replacement of components, improvements, extensions, etc.) are included in the value of the initial asset or are recognized as a separate asset, only when it is probable that the future economic benefits associated with the elements of property, plant and equipment, will flow to the Company and the cost of the item can be determined reliably. The value of the replaced component is written off. The rest of the repairs and maintenance are charged to income when they are incurred.

The depreciation of the Property, plant and equipment is calculated using the linear method over their estimated technical useful lives; except in the case of certain technical components which are depreciated on the basis of cycles and hours flown. This charge is recognized in the captions "Cost of sales" and "Administrative expenses".

The residual value and the useful life of assets are reviewed and adjusted, if necessary, once a year. Useful lives are detailed in Note 16 (d).


        9    

When the value of an asset exceeds its estimated recoverable amount, its value is immediately reduced to its recoverable amount.

Losses and gains from the sale of property, plant and equipment are calculated by comparing the consideration with the book value and are included in the consolidated statement of income.


2.5.    Intangible assets other than goodwill

(a)     Airport slots and Loyalty program

Airport slots and the Loyalty program correspond to intangible assets with indefinite useful lives and are annually tested for impairment as an integral part of the CGU Air Transport.

Airport Slots correspond to an administrative authorization to carry out operations of arrival and departure of aircraft, at a specific airport, within a certain period of time.

The Loyalty program corresponds to the system of accumulation and exchange of miles that is part of TAM Linhas Aereas S.A.

(b)    Computer software

Licenses for computer software acquired are capitalized on the basis of the costs incurred in acquiring them and preparing them for using the specific software. These costs are amortized over their estimated useful lives, for which the Company has defined useful lives between 3 and 10 years.

Expenses related to the development or maintenance of computer software which do not qualify for capitalization, are shown as an expense when incurred. The personnel costs and other costs directly related to the production of unique and identifiable computer software controlled by the Company, are shown as intangible Assets other than Goodwill when they have met all the criteria for capitalization.

2.6.    Borrowing costs

Interest costs incurred for the construction of any qualified asset are capitalized over the time necessary for completing and preparing the asset for its intended use. Other interest costs are recognized in the consolidated statement of income by function when accrued.

2.7.    Losses for impairment of non-financial assets

Intangible assets that have an indefinite useful life and IT projects under development are not subject to amortization and are subject to annual impairment testing or if there are indications of impairment, as an integral part of the Air Transport CGU. Assets subject to amortization are tested for impairment losses whenever any event or change in circumstances indicates that the carrying amount may not be recoverable. An impairment loss is recognized for the excess of the carrying amount of the asset over its recoverable amount. The recoverable amount is the fair value of an asset less the costs of sale or the value in use, whichever is greater. For the purpose of evaluating impairment losses, assets are grouped at the lowest level for which there are largely independent cash inflows (cash generating unit. Non-financial assets, other than goodwill, that would have suffered an impairment loss are reviewed if there are indicators of reversal of losses. Impairment losses are recognized in the consolidated statement of income by function under "Other gains (losses)".

2.8.    Financial assets    

The Company classifies its financial assets in the following categories: at fair value (either through other comprehensive income, or through gains or losses), and at amortized cost. The classification depends on the business model of the entity to manage the financial assets and the contractual terms of the cash flows.

The group reclassifies debt investments when, and only when, it changes its business model to manage those assets.

In the initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset classified at amortized cost, the transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets accounted for at fair value through profit or loss are recorded as expenses in the consolidated statement of income by function.

10

(a)      Debt instruments
The subsequent measurement of debt instruments depends on the group's business model to manage the asset and cash flow characteristics of the asset. The Company has two measurement categories in which the group classifies its debt instruments:

Amortized cost: the assets held for the collection of contractual cash flows where those cash flows represent only payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in income when the asset is derecognized or impaired. Interest income from these financial assets is included in financial income using the effective interest rate method.

Fair value through profit or loss: assets that do not meet the criteria of amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and is presented net in the consolidated statement of income by function within other gains / (losses) in the period or exercise in which it arises.

(b)      Equity instruments

Changes in the fair value of financial assets at fair value through profit or loss are recognized in Other gains/(losses) in the consolidated statement of income by function as appropriate.

The Company evaluates in advance the expected credit losses associated with its debt instruments recorded at amortized cost. The applied impairment methodology depends on whether there has been a significant increase in credit.


2.9. Derivative financial instruments and embedded derivatives
Derivative financial instruments and hedging activities

Initially at fair value on the date on which the derivative contract was made and are subsequently valued at their fair value. The method to recognize the resulting loss or gain depends on whether the derivative designated as a hedging instrument and, if so, the nature of the item being hedged.

The Company designates certain derivatives as:

(a) Hedge of an identified risk associated with a recognized liability or an expected highly- probable transaction (cash-flow hedge), or

(b)      Derivatives that do not qualify for hedge accounting.

At the beginning of the transaction, the Company documents the economic relationship between the hedged items existing between the hedging instruments and the hedged items, as well as its objectives for risk management and the strategy to carry out various hedging operations. The Company also documents its assessment, both at the beginning and on an ongoing basis, as to whether the derivatives used in the hedging transactions are highly effective in offsetting the changes in the fair value or cash flows of the items being hedged.

The total fair value of the hedging derivatives is booked as Other non-current financial asset or liability if the remaining maturity of the item hedged is over 12 months, and as an Other current financial asset or liability if the remaining term of the item hedged is less than 12 months. Derivatives not booked as hedges are classified as Other financial assets or liabilities.
(a) Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is shown in the statement of other comprehensive income. The loss or gain relating to the ineffective portion is recognized immediately in the consolidated statement of income by function under other gains (losses). Amounts accumulated in equity are reclassified to profit or loss in the periods or exercise when the hedged item affects profit or loss. When these amounts correspond to hedging derivatives of highly probable

11
items that give rise to non-financial assets or liabilities, in which case, they are recorded as part of the non-financial assets or liabilities.
For fuel price hedges, the amounts shown in the statement of other comprehensive income are reclassified to results under the line-item Cost of sales to the extent that the fuel subject to the hedge is used.

Gains or losses related to the effective part of the change in the intrinsic value of the options are recognized in the cash flow hedge reserve within equity. Changes in the time value of the options related to this part are recognized within Other Consolidated Comprehensive Income in the costs of the hedge reserve within equity.

When a hedging instrument matures, is sold, or fails to meet the requirements to be accounted for as a hedge, any gain or loss accumulated in the statement of Other comprehensive income until that moment, remains in the statement of other comprehensive income and is reclassified to the consolidated statement of income when the hedged transaction is finally recognized.

When it is expected that the hedged transaction is no longer going to occur, the gain or loss accumulated in the statement of other comprehensive income is taken immediately to the consolidated statement of income by function as “Other gains (losses)”.

(b) Derivatives not booked as a hedge

The changes in fair value of any derivative instrument that is not booked as a hedge are shown immediately in the consolidated statement of income in “Other gains (losses)”.

Embedded derivatives

The Company assesses the existence of embedded derivatives in financial instrument contracts. Derivatives embedded in non-derivative host contracts are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts and the contracts are not measured at FVTPL as a whole. LATAM Airlines Group S.A. has determined that no embedded derivatives currently exist.

2.10.    Inventories

Inventories, are shown at the lower of cost and their net realizable value. The cost is determined on the basis of the weighted average cost method (WAC). The net realizable value is the estimated selling price in the normal course of business, less estimated costs necessary to make the sale.

2.11.    Trade and other accounts receivable

Commercial accounts receivable are initially recognized at their fair value and subsequently at their amortized cost in accordance with the effective rate method, less the provision for impairment according to the model of the expected credit losses. The Company applies the simplified approach permitted by IFRS 9, which requires that expected lifetime losses be recognized upon initial recognition of accounts receivable.

In the event that the Company transfers its rights to any financial asset (generally accounts receivable) to a third party in exchange for a cash payment, the Company evaluates whether all risks and rewards have been transferred, in which case the account receivable is derecognized.

The existence of significant financial difficulties on the part of the debtor, the probability that the debtor goes bankrupt or financial reorganization are considered indicators of a significant increase in credit risk.

The carrying amount of the asset is reduced as the provision account is used and the loss is recognized in the consolidated income statement under "Cost of sales". When an account receivable is written off, it is regularized against the provision account for the account receivable.

2.12.    Cash and cash equivalents

Cash and cash equivalents include cash and bank balances, time deposits in financial institutions, and other short-term and highly liquid investments and a low risk of loss of value.


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2.13.    Capital    

The common shares are classified as net equity.

Incremental costs directly attributable to the issuance of new shares or options are shown in net equity as a deduction from the proceeds received from the placement of shares.

2.14.    Trade and other accounts payables

Trade payables and other accounts payable are initially recognized at fair value and subsequently at amortized cost.

2.15.    Interest-bearing loans

Financial liabilities are shown initially at their fair value, net of the costs incurred in the transaction. Later, these financial liabilities are valued at their amortized cost; any difference between the proceeds obtained (net of the necessary arrangement costs) and the repayment value, is shown in the consolidated statement of income during the term of the debt, according to the effective interest rate method.
Financial liabilities are classified in current and non-current liabilities according to the contractual payment dates of the nominal principal and compliance with contractual agreements at the closing date of these financial statements.



Convertible Notes

The component parts of the convertible notes issued by LATAM Airlines Group S.A. are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or at the instrument’s maturity date. The conversion option classified as equity is determined by the deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in other equity, net of income tax effects. and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in other equity until the conversion option is exercised, in which case, the balance recognized in other equity will be transferred to share capital. Where the conversion option remains unexercised at maturity date of the convertible bond, the balance recognized in other equity will be transferred to "Retained earnings". No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option.

Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are charged directly to equity.


2.16.    Current and deferred taxes

The tax expense for the period or exercise comprises income and deferred taxes.

The current income tax expense is calculated based on tax laws enacted at the date of the statement of financial position, in the countries in which the subsidiaries and associates operate and generate taxable income.

Deferred taxes are calculated according to the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. When deferred taxes arise from the initial recognition of a liability or an asset in a transaction other than a business combination, which at the time of the transaction does not affect either the accounting result or the tax profit or loss, they are recorded. Deferred tax is determined using the tax rates (and laws) that have been enacted or substantially enacted at the date of the consolidated statements of financial position and are expected to apply when the related deferred tax asset is realized or the deferred tax liability discharged.


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Deferred tax assets are recognized only to the extent it is probable that the future taxable profit will be available against which the temporary differences can be utilized.

The tax (current and deferred) is recognized in the statement of income by function, unless it relates to an item recognized in other comprehensive income, directly in equity or arises from a business combination. In this case the tax is also recognized in other comprehensive income or, directly in the statement of income by function, respectively.

Deferred tax assets and liabilities are offset if, and only if:

(a) there is a legally enforceable right to set off current tax assets and liabilities, and
(b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either: (i) the same taxable entity, or (ii) different taxable entities which intend to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

LATAM Airlines Group S.A. has assessed the potential impact arising from the implementation of the so-called “GloBE Rules” or “Pillar Two”, which aim to ensure that multinational groups are subject to a minimum effective tax rate of 15%.

Based on the analyses performed, the Group has concluded that, with the exception of Brazil and Ireland, no entity, permanent establishment or vehicle within the LATAM Group is expected to have a financial impact arising from the application of the GloBE Rules as of December 31, 2025. This is either because such entities fall outside the scope of the GloBE Rules (as they do not meet the criteria to be considered "Constituent Entities") or because they are located in jurisdictions that, as of that date, have not implemented the Pillar Two rules.

With respect to Brazil and Ireland, although the local legal entities fall within the scope of Pillar Two and are therefore subject to related tax compliance obligations, the analyses performed to date indicate that no material impact on the Group’s results is expected. Accordingly, as of the reporting date, no income tax expense related to Pillar Two has been recognized.

Given the complexity and evolving nature of this new legislation, LATAM Group continues to monitor and assess potential impacts on an ongoing basis, particularly in the event that jurisdictions which have not yet implemented Pillar Two decide to do so, or if further analysis becomes necessary with respect to legal entities and permanent establishments classified as “Constituent Entities”.

LATAM Airlines Group S.A. and its Subsidiaries have adopted the exception of paragraph 4A of IAS 12, incorporated in the amendment published on May 23, 2023, relating to the recognition and disclosure of deferred tax assets and liabilities related to Pillar Two income taxes.

2.17.    Employee benefits
    
(a)    Personnel vacations

The Company recognizes the expense for personnel vacations on an accrual basis.
(b)    Share-based compensation

The compensation plans implemented based on the value of the shares of the Company are recognized in the consolidated financial statements in accordance with IFRS 2: Share-based payments, for cash settled awards the fair value, updated as of the closing date of each reporting period or exercise, is recorded as a liability with charge to remuneration.

(c)     Post-employment

Provisions are made for these obligations by applying the method of the projected unit credit method, and considering estimates of future permanence, mortality rates and future wage increases determined on the basis of actuarial calculations. The discount rates are determined by reference to market interest-rate curves. Actuarial gains or losses are shown in other comprehensive income.



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(d)    Incentives

The Company has an annual incentives plan for its personnel for compliance with objectives and individual contribution to the results. The incentives eventually granted consist of a given number or portion of monthly remuneration and the provision is made on the basis of the amount estimated for distribution.    

(e)    Termination benefits

The group recognizes termination benefits at the earlier of the following dates: (a) when the group terminates the employee relationship; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 and involves the payment of terminations benefits.


2.18.    Provisions

Provisions are recognized when:

(i) The Company has a present legal or constructive obligation as a result of a past event;

(ii) It is probable that payment is going to be required to settle an obligation; and

(iii) A reliable estimate of the obligation amount can be made.    


2.19.    Revenue from contracts with customers

(a)     Transportation of passengers and cargo

The Company recognizes the sale for the transportation service as a deferred income liability, which is recognized as income when the transportation service has been provided or expired. In the case of air transport services sold by the Company and that will be made by other airlines, the liability is reduced when they are remitted to said airlines. The Company periodically reviews whether it is necessary to make an adjustment to deferred income liabilities, mainly related to returns, changes, among others.

Compensations granted to clients for changes in the levels of services or billing of additional services such as additional baggage, change of seat, among others, are considered modifications of the initial contract, therefore, they are deferred until the corresponding service is provided.



(b)     Expiration of air tickets

The Company estimates on a monthly basis the probability of expiration of air tickets, with refund clauses, based on their history of use. Air tickets without a refund clause expire on the date of the flight in case the passenger does not show up.

(c)     Costs associated with the contract

The costs related to the sale of air tickets are capitalized and deferred until the moment of providing the corresponding service. These assets are included under the heading "Other non-financial assets" on "Current Assets" in the Consolidated Classified Statement of Financial Position.

(d)     Frequent passenger program

The Company maintains the following loyalty programs: LATAM Pass and LATAM Pass Brazil, whose objective is building customer loyalty through the delivery of miles.

These programs give their frequent passengers the possibility of earning LATAM Pass miles, which grant the right to a selection of both air and non-air awards. Additionally, the Company sells the LATAM Pass miles to financial and non-financial partners through commercial alliances to award miles to their customers.


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To reflect the miles earned, the loyalty program mainly includes two types of transactions that are considered revenue arrangements with multiple performance obligations: (1) Passenger Ticket Sales Earning miles (2) miles sold to financial and non-financial partner.


(1)    Passenger Ticket Sales Earning Miles.

In this case, the miles are awarded to customers at the time that the company performs the flight.

To value the miles earned with travel, we consider the quantitative value a passenger receives by redeeming miles for a ticket rather than paying cash, which is referred to as Equivalent Ticket Value ("ETV"). Our estimate of ETV is adjusted for miles that are not likely to be redeemed ("breakage").

The balance of miles that are pending to redeem are included within deferred revenue.

(2)    Miles sold to financial and non-financial partners

To value the miles earned through financial and non-financial partners, the performance obligations with the client are estimated separately. To calculate these performance obligations, different components that add value in the commercial contract must be considered, such as marketing, advertising and other benefits, and finally the value of the miles awarded to customers based on our ETV. The value of each of these components is finally allocated in proportion to their relative prices. The performance obligations associated with the valuation of the miles earned become part of the Deferred Revenue, and the remaining performance obligations are recorded as revenue when the miles are delivered to the client.

When the miles are exchanged for products and services other than the services provided by the Company, the income is recognized immediately; when the exchange is made for air tickets of any airline of LATAM Airlines Group S.A. and Subsidiaries, the income is deferred until the air transport service is provided.

The miles that the Company estimates will not be exchanged are recognized in the results based on the consumption pattern of the miles effectively exchanged by customers. The Company uses statistical models to estimate the probability of exchange, which is based on historical patterns and projections.

2.20.    Leases
    
The Company recognizes contracts that meet the definition of a lease as a right of use asset and a lease liability on the date when the underlying asset is available for use.

Right of use assets are measured at cost including the following:

-The amount of the initial measurement of the lease liability;
-Lease payment made at or before commencement date;
-Initial direct costs, and
-Restoration costs.

The right of use assets are recognized in the statement of financial position in Property, plant and equipment.

Lease liabilities include the net present value of the following payments:

-Fixed payments including in substance fixed payment.
-Variable lease payments that depend on an index or a rate;
-The exercise price of a purchase option, if it is reasonably certain that the option will be exercised.

The discount rate that LATAM Airlines Group S.A. and Subsidiaries uses is the interest rate implicit in the lease, if that rate can be readily determined. This is the rate of interest that causes the present value of (a) lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor.

LATAM Airlines Group S.A. and Subsidiaries uses its incremental borrowing rate if the interest rate implicit in the lease cannot be readily determined.

Lease liabilities are recognized in the statement of financial position under “Other financial liabilities, current or non-current”.

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Interest accrued on financial liabilities is recognized in the consolidated statement of income in "Financial costs".

Principal and interest are present in the consolidated cash flow as "Payments of lease liability" and "Interest paid", respectively, within financing cash flows.

Payments associated with short-term leases without purchase options and leases of low-value assets are recognized on a straight-line basis in profit or loss at the time of accrual. Those payments are presented within operating cash flows.

The Company analyzes the financing agreements of aircraft, mainly considering characteristics such as:

(a)     That the Company initially acquired the aircraft or took an important part in the process of direct acquisition with the manufacturers.
(b)     Due to the contractual conditions, it is virtually certain that the Company will execute the purchase option of the aircraft at the end of the lease term.

Since these financing agreements are “substantially purchases” and not leases, the related liability is considered as a financial debt classified under IFRS 9 and continues to be presented within the “Other financial liabilities” described in Note 18. On the other hand, the aircraft are presented in Property, Plant and Equipment, as described in Note 16, as “own aircraft”.

The Group qualifies as sale and lease transactions, operations that lead to a sale according to IFRS 15. More specifically, a sale is considered as such if there is no option to purchase the goods at the end of the lease term.

If the sale by the seller-lessee is classified as a sale in accordance with IFRS 15, the underlying asset is derecognized, and a right-of-use asset equal to the portion retained proportionally of the amount of the asset is recognized.

If the sale by the seller-lessee is not classified as a sale in accordance with IFRS 15, the transferred assets are kept in the financial statements and a financial liability equal to the sale price is recognized (received from the buyer-lessor).

2.21.    Non-current assets or disposal groups classified as held for sale

Non-current assets (or disposal groups) classified as assets held for sale are shown at the lesser of their book value and the fair value less costs to sell.


2.22.    Maintenance

The costs incurred for scheduled heavy maintenance of the aircraft’s fuselage and engines are capitalized and depreciated until the next maintenance. The depreciation rate is determined on technical grounds, according to the use of the aircraft expressed in terms of cycles and flight hours.

In case of aircraft include in property, plant and equipment, these maintenance cost are capitalized as Property, plant and equipment, while in the case of aircraft on right of use, a liability is accrued based on the use of the main components is recognized, since a contractual obligation with the lessor to return the aircraft on agreed terms of maintenance levels exists. These are recognized as Cost of sales.

Additionally, some contracts that comply with the definition of lease establish the obligation of the lessee to make deposits to the lessor as a guarantee of compliance with maintenance and return conditions. These deposits, often called maintenance reserves, accumulate until a major maintenance is performed; and once done, recovery is requested to the lessor. At the end of the contract period, there is comparison between the reserves that have been paid and required return conditions, and compensation between the parties are made if applicable.

The unscheduled maintenance of aircraft and engines, as well as minor maintenance, are charged to results as incurred.



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2.23.    Environmental costs

Disbursements related to environmental protection are charged to results when incurred or accrue.



NOTE 3 - FINANCIAL RISK MANAGEMENT

3.1.    Financial risk factors

The Company is exposed to different financial risks: (a) market risk, (b) credit risk, and (c) liquidity risk. The risk management of the Company aims to minimize the adverse effects of financial risks affecting the company.

(a)    Market risk

Due to the nature of its operations, the Company has exposure to market factors such as: (i) fuel-price risk, (ii) exchange -rate risk (FX), and (iii) interest -rate risk.

The Company has developed manuals and procedures to manage the market risk, which goal is to identify, quantify, monitor and mitigate the adverse effects of changes in market factors mentioned above.

For the foregoing, Management monitors the evolution of fuel price levels, exchange rates and interest rates, quantifies their exposures and their risk, and develops and executes hedging strategies.


(i)    Fuel-price risk

Exposure:

For the execution of its operations, the Company purchases a fuel called Jet Fuel grade 54 USGC, which is subject to the fluctuations of international fuel prices.

Mitigation:

To hedge the fuel-price risk exposure, the Company operates with derivative instruments (swaps and options) whose underlying assets may be different from Jet Fuel, such as West Texas Intermediate (“WTI”) crude, Brent (“BRENT”) crude and distillate Heating Oil (“HO”), which may have a high correlation with Jet Fuel and greater liquidity.

Fuel Hedging Results:

During the period ended December 31, 2025, the Company recognized losses of US$19.1 million for fuel hedging net of premiums in the costs of sales for the year. During the year ended December 31, 2024, the Company recognized losses of US$18.1 million for fuel hedging net of premiums in the costs of sales for the year.

As of December 31, 2025, the market value of the fuel positions amounted to US$14.0 million. At the end of December 2024, this market value was US$7.7 million.

The following tables show the level of hedge for different periods:

Positions as of December 31, 2025 (*) Maturities
Q126Q226Q326Q426Total
Percentage of coverage over the expected volume of consumption 48%39%26%17%32%




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Positions as of December 31, 2024 (*)Maturities
Q125Q225Q325Q425Total
Percentage of coverage over the expected volume of consumption51%47%34%30%41%

(*) The percentage shown in the table considers all the hedging instruments (swaps and options).



Sensitivity analysis

A drop in fuel price positively affects the Company through a reduction in costs. However, also negatively affects contracted positions as these are acquired to protect the Company against the risk of a rise in price. Therefore, the strategy is to maintain a hedge-free percentage in order to be competitive in the event of a drop in price.

The current hedge positions are booked as cash flow hedge contracts, so a variation in the fuel price has an impact on the Company’s net equity.

The following table shows the sensitivity of financial instruments according to reasonable changes in the price of fuel and their effect on equity.

The calculations were made considering a parallel movement of US$5 per barrel in the underlying reference price curve at the end of December 2025 and the end of December 2024. The projection period was defined until the end of the last fuel hedging contract in force, being the last business day of the fourth trimester of 2026.

Benchmark price
(US$ per barrel)		Positions as of December 31, 2025
effect on Equity
(MUS$)		Positions as of December 31, 2024
effect on Equity
(MUS$)
+5+17.6+15.7
-5-15.1-12.8

Given the fuel hedging structure as of the fourth quarter of 2025, which considers a portion free of hedges, a vertical drop of 5 dollars in the JET reference price (considered as the monthly daily average), would have meant an impact of approximately US$142.0 million lower fuel cost. For the same period, a vertical rise of 5 dollars in the JET reference price (considered as the monthly daily average), would have meant an approximate impact of US$131.5 million in higher fuel costs.

(ii)    Foreign exchange rate risk:

Exposure:

The functional currency of the financial statements of the parent company is the US dollar, so that the risk of the Transactional and Conversion exchange rate arises mainly from the Company's business, strategic and accounting operating activities that are expressed in a monetary unit other than the functional currency.

The subsidiaries of LATAM are also exposed to foreign exchange risk whose impact affects the Company's Consolidated Income.

The largest operational exposure to LATAM's exchange risk comes from the concentration of businesses in Brazil, which are mostly denominated in Brazilian real (R$), and are actively managed by the Company.

At a lower concentration, the Company is also exposed to the fluctuation of other currencies, such as: Euro, Pound sterling, Australian dollar, Colombian peso, Chilean peso, Argentine peso, Paraguayan guarani, Mexican peso, Peruvian Sol and New Zealand dollar.





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Mitigation:

The Company mitigates currency risk exposures by contracting hedging or non-hedging derivative instruments or through natural hedges or execution of internal operations.

Exchange Rate Hedging Results (FX):

As of December 31, 2025, the Company recognized losses of US$22.1 million for FX hedging derivatives net of premiums reflected in exchange rate. At the end of December of 2024, the Company recognized gains for US$10.0 million for FX hedging derivatives in exchange rate.

As of December 31, 2025, the market value of hedging FX derivative positions is US$2.7 million. As of December 31, 2024, the market value of the hedging FX derivative positions was US$3.1 million. As of December 31, 2025, the Company has current hedging FX derivatives for US$355 million. As of December 31, 2024, the Company held hedging FX derivatives of US$165 million.



Sensitivity analysis:

A depreciation of the R$/US$ exchange rate, negatively affects the Company's operating cash flows, however, also positively affects the value of the positions of derivatives contracted.

The following table shows the sensitivity of current hedging FX derivative instruments according to reasonable changes in the exchange rate and its effect on equity.
Appreciation (depreciation)
of R$/US$		Effect on equity as of
December 31, 2025
(MUS$)		Effect on equity as of
December 31, 2024
(MUS$)
-10%-7.9-3.6
+10%+10.9+1.0

Impact of Exchange rate variation in the Consolidated Income Statements (Foreign exchange gains/losses).

In the case of TAM S.A., whose functional currency is the Brazilian real, a large part of its assets and liabilities is expressed in US dollars. Therefore, when converting financial assets and liabilities, from US dollar to Brazilian reais, they have an impact on the result of TAM S.A., which is consolidated in the Company's Income Statement.

In order to reduce the impact on the Company's result caused by appreciations or depreciations of R$/US$, the Company carries out internal operations to reduce the net exposure in US$ for TAM S.A.

The following table shows the impact of the Exchange Rate variation on the Consolidated Income Statement when the R$/US$ exchange rate appreciates or depreciates by 10%:

Appreciation (depreciation)
of R$/US$		Effect on Income Statement
for the year ended December 31, 2025
(MUS$)		Effect on Income Statement
for the year ended December 31, 2024
(MUS$)
-10%-59.7-54.7
+10%+59.7+54.7
Impact of the exchange rate variation in the Equity, from translating the subsidiaries financial statements into US Dollars (Cumulative Translate Adjustment).

Since the functional currency of TAM S.A. and Subsidiaries is the Brazilian real, the Company presents the effects of the exchange rate fluctuations in Other comprehensive income (Cumulative Translation Adjustment) by converting the Statement of financial position and Income statement of TAM S.A. and Subsidiaries from their functional currency to the U.S. dollar, which is the presentation currency of the consolidated financial statement of LATAM Airlines Group S.A. and Subsidiaries.


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The following table shows the impact on the Cumulative Translation Adjustment included in Other comprehensive income recognized in Total equity in the case of an appreciation or depreciation of 10% in the exchange rate R$/US$:

Appreciation (depreciation)
of R$/US$		Effect at December 31, 2025
MUS$		Effect at December 31, 2024
MUS$
-10%+368.74+318.51
+10%-301.70-260.60



(iii)    Interest -rate risk:

Exposure:

The Company has exposure to fluctuations in interest rates affecting the future cash flows of the assets, and current and future financial liabilities.

The Company is mainly exposed to the Secured Overnight Financing Rate (“SOFR”) and other less relevant interest rates such as Brazilian Interbank Certificates of Deposit (“CDI”) .

Of the company's financial debt subject to variable rates, all of the contracts maintain exposure to the SOFR reference rate.

Mitigation:

Currently, 66% (76% as of December 31, 2024) of the debt is fixed against fluctuations in interest rates. The variable debt is indexed to the reference rate based on SOFR.

Likewise, most of the company's liquidity is denominated in US dollars and indexed to a return rate similar and with a similar fluctuation to the SOFR rate, which helps reduce exposure.


Rate Hedging Results:

During the period ended December 31, 2025, the Company did not recognize any losses for premiums paid. At the end of December of 2024, the Company did not recognize any losses for premiums paid.

As of December 31, 2025, the Company does not hold interest rate derivative positions corresponding to operating leases to fix the income of future plane arrivals. (US$4.68 million as of December 31, 2024).

As of December 31, 2025, the Company recognized an decrease in the right-of-use asset due to the expiration of derivatives for US$2.20 million associated with the aircraft lease. As of December 31, 2024, the Company recognized an increase in the right-of-use asset due to the expiration of derivatives for US$(0.1) million associated with the aircraft lease. On this same date, a lower depreciation expense of the right-of-use asset for US$2.0 million was recognized. At the end of December of 2024, the Company recognized US$1.9 million for this same concept.

As of December 31, 2025, the Company settled derivatives associated with hedges of leased aircraft for US$2.2 million. As of December 31, 2024, the Company settled derivatives associated with hedges of leased aircraft for US$0.1 million.

Sensitivity analysis:
The following table shows the sensitivity of changes in financial obligations that are not hedged against interest-rate variations. These changes are considered reasonably possible, based on current market conditions each date.


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Increase (decrease)
of future curve
SOFR rate		Positions as of December 31, 2025 effect on Income (Loss) before taxes
(MUS$)		Positions as of December 31, 2024 effect on Income (Loss) before tax
(MUS$)
+100 basis points-14.35-9.28
-100 basis points+14.35+9.28

A large part of the derivatives of current rates are recorded as cash flow hedge contracts, therefore, a variation in interest rates has an impact on the market value of the derivatives, whose changes affect the equity of the entity.

Increase (decrease)
interest rate curve		Positions as of December 31, 2025
effect on equity
(MUS$)		Positions as of December 31, 2024
effect on equity
(MUS$)
+100 basis points—+5.90
-100 basis points—-6.30

The calculations were made by vertically increasing (decreasing) 100 basis points of the interest rate curve, both scenarios being reasonably possible according to historical market conditions.

The sensitivity calculation hypothesis must assume that the forward curves of interest rates will not necessarily reflect the real value of the compensation of the flows. In addition, the interest rate structure is dynamic over time.

During the period ended December 31, 2025, the Company did not record any losses for ineffectiveness in the consolidated income statement for this type of coverage.

(b)     Credit risk

Credit risk occurs when the counterparty does not comply with its obligations to the Company under a specific contract or financial instrument, resulting in a loss in the market value of a financial instrument (only financial assets, not liabilities). The customer portfolio as of December 31, 2025 has experienced an increase of 20% compared to the balance as of December 31, 2024, mainly due to an increase in passenger transportation operations (travel agencies and corporate) which increased by 22% in its sales, mainly affecting the payment methods credit card 22%, and cash sales 20%. In relation to the cargo business, it presented a decrease in its operations of 9% compared to December 2024. There was special consideration for the Expected Credit Loss calculation for the clients with balance at the year end that management considered risky. The Expected Credit Loss at the end of December 2025 had a decrease of 12% compared to the end of December 2024, due to the reduction of the portfolio resulting from recoveries and the application of write-offs during the period.

The Company is exposed to credit risk due to its operational activities and its financial activities, including deposits with banks and financial institutions, investments in other types of instruments, exchange rate transactions and derivatives contracts.
To reduce the credit risk related to operational activities, the company has implemented credit limits to limit the exposure of its debtors, which are permanently monitored for the LATAM network, when deemed necessary, agencies have been blocked for cargo and passenger businesses.

(i)Financial activities

Cash surpluses that remain after the financing of assets necessary for the operation are invested according to credit limits informed to the Company’s Board, mainly in time deposits with different financial institutions, private investment funds and short-term mutual funds. These investments are booked as Cash and cash equivalents.

In order to reduce counterparty risk and to ensure that the risk assumed is known and managed by the Company, investments are diversified among different banking institutions (both local and international). The Company evaluates the credit standing of each counterparty and the levels of investment, based on (i) its credit rating, and (ii) investment limits according to the Company’s level of liquidity. According to these two

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parameters, the Company chooses the most restrictive parameter of the previous two and based on this, establishes limits for operations with each counterparty.

The Company has no guarantees to mitigate this exposure.

(ii)     Operational activities

The Company has four large sales “clusters”: travel agencies, cargo agents, airlines and credit-card administrators. The first three are governed by International Air Transport Association (“IATA”), international organization comprising most of the airlines that represent over 90% of scheduled commercial traffic and one of its main objectives is to regulate the financial transactions between airlines and travel agents and cargo. When an agency or airline does not pay their debt, it is excluded from operating with IATA’s member airlines. In the case of credit-card administrators, they are fully guaranteed by 100% by the issuing institutions.

Under certain of the Company’s credit card processing agreements, the financial institutions have the right to require that the Company maintain a reserve equal to a portion of advance ticket sales that have been processed by that financial institution, but for which the Company has not yet provided the air transportation. Additionally, the financial institutions have the ability to require additional collateral reserves or withhold payments related to receivables to be collected if increased risk is perceived related to liquidity covenants in these agreements or negative balances occur.

The exposure consists of the term granted, which fluctuates between 1 and 45 days.

One of the tools the Company uses for reducing credit risk is to participate in global entities related to the industry, such as IATA, Billing Settlement Plan (“BSP”), Cargo Account Settlement Systems (“CASS”), IATA Clearing House (“ICH”) and banks (credit cards). These institutions fulfill the role of collectors and distributors between airlines and travel and cargo agencies. In the case of the Clearing House, it acts as an offsetting entity between airlines for the services provided between them. A reduction in term and implementation of guarantees has been achieved through these entities.

The sales invoicing of TAM Linhas Aéreas S.A. related with cargo agents for domestic transportation in Brazil is done directly by TAM Linhas Aereas S.A.


Credit quality of financial assets

The external credit evaluation system used by the Company is provided by IATA. Internal systems are also used for particular evaluations or specific markets based on trade reports available on the local market. The internal classification system is complementary to the external one, i.e. for agencies or airlines not members of IATA, the internal demands are greater.

To reduce the credit risk associated with operational activities, the Company has established credit limits to mitigate the exposure of their debtors which are monitored permanently . The bad-debt rate in the principal countries where the Company has a presence is insignificant.

(c)    Liquidity risk

Liquidity risk represents the risk that the Company does not have sufficient funds to pay its obligations.

Due to the cyclical nature of its business, the operation and investment needs, along with the need for financing, the Company requires liquid funds, defined as Cash and cash equivalents plus other short-term financial assets, to meet its payment obligations.

The balance of liquid funds, future cash generation and the ability to obtain financing, provide the Company with alternatives to meet future investment and financing commitments.

As of December 31, 2025, the balance of liquid funds is US$2,150 million (US$1,958 million as of December 31, 2024), which are invested in short-term instruments through financial entities with a high credit rating classification.




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As of December 31, 2025, LATAM maintains three Revolving Credit Facility for a total of US$1,850 million, one for an amount of US$800 million, another for an amount of US$750 million and the last one for US$300 million. The first two are fully available whilst the third has US$25 million undrawn and available. With this, the sum of the three committed credit lines amounts to a total of US$1,575 million. The first of these lines is secured by and subject to the availability of certain collateral (i.e. aircraft, engines and spare parts). The second one, is secured by certain intangibles assets of the Company, which are shared with both international bonds. The third is collateralized by spare engines. (See Note 31)



24
Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2025
Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2 Chile.

Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		TotalNominal
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Obligations with the public
97.036.000-KSANTANDERChileUF— 3,159 6,266 6,266 202,439 218,130 164,600 To the expiration2.00 2.00 
0-EWILMINGTON TRUST COMPANYU.S.A.US$30,500 140,750 342,500 1,687,375 830,500 3,031,625 2,200,000 To the expiration8.46 7.78 
97.036.000-KSANTANDERChileUS$— — — — — — 3 To the expiration1.00 1.00 
Guaranteed obligations
0-EBNP PARIBASU.S.A.US$5,370 15,576 40,835 40,993 81,342 184,116 146,535 Quarterly5.38 5.38 
0-EWILMINGTON TRUST COMPANYU.S.A.US$5,307 15,611 40,740 52,876 — 114,534 99,775 Quarterly/Monthly5.81 5.81 
0-ECCBIrelandUS$3,670 10,686 27,597 26,849 199,000 267,802 170,208 Quarterly5.75 5.75 
0-EBOCOMMIrelandUS$6,149 18,209 46,836 44,371 248,051 363,616 242,188 Quarterly5.83 5.83 
Other guaranteed obligation
0-EEXIM BANKU.S.A.US$5,463 16,383 43,668 16,557 — 82,071 78,956 Quarterly2.03 1.79 
0-ENATIXISFranceUS$14,707 43,262 108,256 50,467 34,705 251,397 218,473 Quarterly5.39 5.39 
0-ECREDIT AGRICOLEFranceUS$4,378 13,063 310,081 — — 327,522 275,012 To the expiration5.94 5.94 
Financial lease
0-ENATIXISFranceUS$9,409 27,399 70,797 96,349 — 203,954 166,742 Quarterly6.12 6.12 
0-EEXIM BANKU.S.A.US$25,763 73,206 148,595 61,763 13,355 322,682 305,863 Quarterly3.54 2.68 
0-EBOC AVIATIONU.S.A.US$1,438 4,175 11,172 11,187 49,887 77,859 52,500 Monthly6.31 6.31 
0-EBANK OF UTAHU.S.A.US$5,952 17,928 54,357 48,204 69,393 195,834 149,983 Monthly10.46 10.46 
TOTAL118,106 399,407 1,251,700 2,143,257 1,728,672 5,641,142 4,270,838 











25
Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2025
Debtor: TAM S.A. Tax No. 02.012.862/0001-60, Brazil.


Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		TotalNominal
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Financial leases
0-ENATIXISFranceUS$510 1,530 9,886 — — 11,926 11,926 Quarterly— — 
TOTAL510 1,530 9,886 — — 11,926 11,926 


































26
Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2025
Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2, Chile.

Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		TotalNominal
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Lease Liability
AIRCRAFTOTHERSUS$174,401 577,354 1,272,385 1,027,954 1,829,616 4,881,710 3,574,027 — — — 
OTHER ASSETSOTHERSUS$4,726 13,773 36,544 27,416 95,744 178,203 127,549 — — — 
CLP300 878 2,325 2,325 19,758 25,586 22,433 — — — 
UF1,508 4,261 9,817 7,852 6,143 29,581 25,862 — — — 
COP493 1,431 1,305 — — 3,229 3,028 — — — 
EUR28 24 29 1 — 82 75 — — — 
BRL3,289 9,858 17,971 14,020 10,827 55,965 39,675 — — — 
MXN38 101 84 2 — 225 212 — — — 
Trade and other accounts payables
-OTHERSOTHERSUS$1,328,751 2,383 — — — 1,331,134 1,331,134 — — — 
CLP200,784 1,806 — — — 202,590 202,590 — — — 
BRL973,006 649 — — — 973,655 973,655 — — — 
Other currency173,295 4,172 — — — 177,467 177,467 — — — 
Accounts payable to related parties currents
ForeignQatar AirwaysQatarUS$— 2,375 — — — 2,375 2,375 — — — 
ForeignDelta Air Lines, Inc.U.S.AUS$— 5,332 — — — 5,332 5,332 — — — 
Total2,860,619 624,397 1,340,460 1,079,570 1,962,088 7,867,134 6,485,414 
Total consolidated2,979,235 1,025,334 2,602,046 3,222,827 3,690,760 13,520,202 10,768,178 













27
Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2024
Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2 Chile.

Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		TotalNominal
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Obligations with the public
97.036.000-KSANTANDERChileUF— 2,970 5,889 5,889 167,830 182,578 147,217 To the expiration2.00 2.00 
0-EWILMINGTON TRUST COMPANYU.S.A.US$— 203,875 407,750 1,107,750 1,455,125 3,174,500 2,100,000 To the expiration10.69 9.71 
97.036.000-KSANTANDERChileUS$— — — — 6 6 3 To the expiration1.00 1.00 
Guaranteed obligations
0-EBNP PARIBASU.S.A.US$5,996 17,263 45,343 43,928 104,940 217,470 159,624 Quarterly6.03 6.03 
0-EWILMINGTON TRUST COMPANYU.S.A.US$5,770 17,015 43,945 41,683 33,697 142,110 115,727 Quarterly/Monthly7.73 7.73 
0-EBOCOMMIrelandUS$2,724 8,158 20,911 19,790 110,277 161,860 100,000 Quarterly6.42 6.42 
Other guaranteed obligation
0-EEXIM BANKU.S.A.US$5,447 16,392 43,700 38,590 14 104,143 99,109 Quarterly2.29 2.05 
0-ECREDIT AGRICOLEFranceUS$4,097 13,097 35,021 292,571 — 344,786 275,012 To the expiration6.63 6.63 
Financial lease
0-ENATIXISFranceUS$10,319 29,916 77,088 112,238 24,493 254,054 191,383 Quarterly6.73 6.73 
0-EUS BANKU.S.A.US$11,210 6,710 — — — 17,920 17,492 Quarterly4.88 3.40 
0-EEXIM BANKU.S.A.US$36,227 82,640 180,932 108,316 36,702 444,817 413,072 Quarterly4.00 3.17 
0-EBANK OF UTAHU.S.A.US$5,981 18,001 51,307 60,431 86,947 222,667 161,870 Monthly10.71 10.71 
TOTAL87,771 416,037 911,886 1,831,186 2,020,031 5,266,911 3,780,509 





28
Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2024
Debtor: TAM S.A. Tax No. 02.012.862/0001-60, Brazil.

Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		TotalNominal
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Financial leases
0-ENATIXISFranceUS$510 1,530 4,080 7,846 — 13,966 13,966 Quarterly— — 
TOTAL510 1,530 4,080 7,846 — 13,966 13,966 







´














29
Class of liability for the analysis of liquidity risk ordered by date of maturity as of December 31, 2024
Debtor: LATAM Airlines Group S.A. Tax No. 89.862.200-2, Chile.

Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		TotalNominal
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Lease Liability
AIRCRAFTOTHERSUS$144,076 507,305 1,171,362 958,537 1,718,984 4,500,264 3,174,757 —— — 
OTHER ASSETSOTHERSUS$3,717 11,276 31,723 27,462 90,051 164,229 88,854 —— — 
CLP1,535 4,604 11,441 10,263 29,935 57,778 36,151 —— — 
UF1,264 3,757 9,241 6,523 3,631 24,416 21,425 —— — 
COP344 1,016 1,784 56 — 3,200 2,829 —— — 
EUR31 92 58 8 — 189 183 —— — 
BRL3,072 8,322 18,727 12,425 18,256 60,802 38,082 —— — 
MXN87 217 11 — — 315 299 —— — 
Trade and other accounts payables
-OTHERSOTHERSUS$1,291,259 6,478 — — — 1,297,737 709,933 —— — 
CLP65,753 193 — — — 65,946 64,317 —— — 
BRL224,513 6,621 — — — 231,134 409,474 —— — 
Other currency172,749 4,534 — — — 177,283 118,189 —— — 
Accounts payable to related parties currents
ForeignQatar AirwaysQatarUS$— 3,576 — — — 3,576 3,576 —— — 
ForeignDelta Air Lines, Inc.U.S.AUS$— 9,299 — — — 9,299 9,299 —— — 
Total1,908,400 567,290 1,244,347 1,015,274 1,860,857 6,596,168 4,677,368 
Total consolidated1,996,681 984,857 2,160,313 2,854,306 3,880,888 11,877,045 8,471,843 


30
The Company has fuel, interest rate and exchange rate hedging strategies involving derivatives contracts with different financial institutions.

As of December 31, 2025, the Company does not maintains guarantees corresponding to derivative transactions. At of December 31, 2024, the Company had guarantees for US$0.5 million corresponding to derivative transactions.

3.2.    Capital risk management

The objectives of the Company, in relation to capital management are: (i) to meet the minimum equity requirements and (ii) to maintain an optimal capital structure.

The Company monitors contractual obligations and regulatory requirements in the different countries where the group's companies are domiciled to ensure faithful compliance with the minimum equity requirement, the most restrictive limit of which is to maintain positive liquid equity.

Additionally, the Company periodically monitors the short and long term cash flow projections to ensure that it has sufficient cash generation alternatives to meet future investment and financing commitments.

The Company's international credit rating is the result of its ability to meet its long-term financial commitments. As of December 31, 2025, The Company has a national scale rating of A with positive outlook by Fitch and a rating of A- with positive outlook by Feller. On an international scale, it has a rating of BB with a stable outlook by Standard & Poor's, a rating of Ba2 with a stable outlook by Moody's and a rating of BB with a positive outlook by Fitch.

3.3.     Estimates of fair value.

At December 31, 2025, the Company maintained financial instruments that should be recorded at fair value. These are grouped into two categories:

1.    Derivative financial instruments:

This category includes the following instruments:

-Fuel derivative contracts,

-Currency derivative contracts,

-Interest rate derivative contracts.


2.    Financial Investments:


This category includes the following instruments:

-Investments in short-term Mutual Funds (cash equivalent).


The Company has classified the fair value measurement using a hierarchy that reflects the level of information used in the assessment. This hierarchy consists of 3 levels (I) fair value based on quoted prices in active markets for identical assets or liabilities, (II) fair value calculated through valuation methods based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) and (III) fair value based on inputs for the asset or liability that are not based on observable market data.

The fair value of financial instruments traded in active markets, such as investments acquired for trading, is based on quoted market prices at the close of the period using the current price of the buyer. The fair value of financial assets not traded in active markets (derivative contracts) is determined using valuation techniques that maximize use of available market information. Valuation techniques generally used by the Company are quoted market prices of similar instruments and / or estimating the present value of future cash flows using forward price curves of the market at period end.






31
The following table shows the classification of financial instruments at fair value, depending on the level of information used in the assessment:

As of December 31, 2025As of December 31, 2024
Fair value measurements using
 values considered as		Fair value measurements using
 values considered as
Fair valueLevel ILevel IILevel IIIFair valueLevel ILevel IILevel III
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Assets
Cash and cash equivalents140,343 140,343 — — 77,313 77,313 — — 
Short-term mutual funds140,343 140,343 — — 77,313 77,313 — — 
Other financial assets, current16,699 — 16,699 — 15,565 — 15,565 — 
Fair value interest rate derivatives— — — — 4,676 — 4,676 — 
Fair value of fuel derivatives14,009 — 14,009 — 7,747 — 7,747 — 
Fair value of foreign currency derivative2,690 — 2,690 — 3,142 — 3,142 — 
Liabilities
Other financial liabilities, current— — — — — — — — 
Fair value of foreign currency derivatives— — — — — — — — 

























32
Additionally, at December 31, 2025, the Company has financial instruments which are not recorded at fair value. In order to meet the disclosure requirements of fair values, the Company has valued these instruments as shown in the table below:

As of December 31, 2025As of December 31, 2024
Book valueFair valueBook valueFair value
ThUS$ThUS$ThUS$ThUS$
Cash and cash equivalents2,009,770 2,009,770 1,880,475 1,880,475 
Cash on hand2,059 2,059 1,885 1,885 
Bank balance761,242 761,242 664,173 664,173 
Overnight47,386 47,386 103,761 103,761 
Time deposits1,199,083 1,199,083 1,110,656 1,110,656 
Other financial assets, current53,845 53,845 51,730 51,730 
Other financial assets53,845 53,845 51,730 51,730 
Trade debtors, other accounts receivable and Current accounts receivable1,381,869 1,381,869 1,163,707 1,163,707 
Accounts receivable from entities related, current7 7 25 25 
Other financial assets, non-current52,139 52,139 53,772 53,772 
Accounts receivable, non-current13,950 13,950 12,342 12,342 
Other current financial liabilities745,303 922,837 635,213 837,181 
Accounts payable for trade and other accounts payable, current2,684,846 2,684,846 2,133,572 2,133,572 
Accounts payable to entities related, current7,707 7,707 12,875 12,875 
Other financial liabilities, non current7,343,223 7,058,956 6,515,238 6,361,620 
Accounts payable, non current471,208 471,208 491,762 491,762 

The book values of accounts receivable and payable are assumed to approximate their fair values, due to their short-term nature. In the case of cash on hand, bank balances, overnight, time deposits and accounts payable, non-current, fair value approximates their carrying values.

The fair value of other financial liabilities is estimated by discounting the future contractual cash flows at the current market interest rate for similar financial instruments (Level II). In the case of Other financial assets, the valuation was performed according to market prices at period end. The book value of Other financial liabilities, current or non-current, do not include lease liabilities.


NOTE 4 - ACCOUNTING ESTIMATES AND JUDGMENTS

The Company has used estimates to value and record some of the assets, liabilities, revenue, expenses and commitments. Basically, these estimates refer to:


(a)     Impairment of Intangible asset with indefinite useful life

Management conducts an impairment test annually or more frequently if events or changes in circumstances indicate potential impairment. For this assessment, the Company has determined the existence of a single CGU corresponding to Air Transport. An impairment loss is recognized for the amount by which the carrying amount of the cash generating unit (CGU) exceeds its recoverable amount.

The recoverable value of this cash-generating unit (CGU) has been determined based on value-in-use calculations. Management’s value-in-use calculations included significant judgments and assumptions relating to revenue growth rates, exchange rates, discount rates, inflation rates, fuel price. The estimation of these assumptions requires significant judgment by management as these variables are inherently uncertain; however, the assumptions used are consistent with the Company’s forecasts approved by management. Therefore, management evaluates and updates the estimates at least annually and as necessary in light of conditions that

33
affect these variables. The main assumptions used as well as the corresponding sensitivity analyses are shown in Note 15.


(b)     Depreciation expense and impairment of Properties, Plant and Equipment

The depreciation of assets is calculated based on a straight-line basis, except for certain technical components depreciated on cycles and hours flown. These useful lives are reviewed on an annual basis according to the Company’s future economic benefits associated with them.

Changes in circumstances such as: technological advances, business model, planned use of assets or capital strategy may result in a useful life different from what has been estimated. When it is determined that the useful life of property, plant, and equipment must be reduced, as may occur in line with changes in planned usage of assets, the difference between the net book value and estimated recoverable value is depreciated, in accordance with the revised remaining useful life.

The residual values are estimated according to the market value that the assets will have at the end of their life. The residual value and useful life of the assets are reviewed, and adjusted if necessary, once a year. When the value of an asset is greater than its estimated recoverable amount, its value is immediately reduced to its recoverable amount.

The Company has concluded that the Properties, Plant and Equipment cannot generate cash inflows to a large extent independent of other assets, therefore the impairment assessment is made as an integral part of the only Cash Generating Unit maintained by the Company, Air Transport. The Company checks when there are signs of impairment, whether the assets have suffered any impairment losses at the Cash Generated Unit level.


(c)     Recoverability of deferred tax assets    

Management records deferred taxes on the temporary differences that arise between the tax bases of assets and liabilities and their amounts in the financial statements. Deferred tax assets on tax losses are recognized to the extent that it is probable that future tax benefits will be available to offset temporary differences.

The Company applies significant judgment in evaluating the recoverability of deferred tax assets. In determining the amounts of the deferred tax asset to be accounted for, management considers tax planning strategies, historical profitability, projected future taxable income (considering assumptions such as: growth rate, exchange rate, discount rate and fuel price consistent with those used in the impairment analysis of the group's cash-generating unit) and the expected timing of reversals of existing temporary differences.


(d)     Air tickets sold that will not be finally used.

The Company records the sale of air tickets as deferred revenue. Ordinary revenue from the sale of tickets is recognized in the statement of income when the passenger transportation service is provided or expires due to non-use. The Company evaluates the probability of expiration of air tickets on a monthly basis, based on the history of use. A change in this probability could impact revenue in the period in which the change occurs and in future periods.

As of December 31, 2025, deferred revenues associated with air tickets sold amount to ThUS$2,323,221 (ThUS$2,012,661 as of December 31, 2024). A hypothetical change of one percentage point in the probability of expiration of up to ThUS$12,059 per month (ThUS$10,016 as of December 31, 2024).


(e)     Valuation of the miles awarded to the holders of the loyalty programs, pending use - breakage.
As of December 31, 2025, deferred revenue associated with the LATAM Pass loyalty program from Spanish-speaking countries totalized ThUS$893,681 (ThUS$949,495 as of December 31, 2024). An hypothetical change of one percentage point in the probability of redemption would translate into a cumulative impact of ThUS$35,441 on the results of 2025 (ThUS$33,479 as of December 31, 2024). Deferred revenue associated with the LATAM Pass Brazil loyalty program totalized ThUS$280,182 as of December 31, 2025 (ThUS$203,058 as of December 31, 2024). An hypothetical change of one percentage point in the probability of redemption would result in an accumulated impact of ThUS$9,642 on the results of 2025 (ThUS$5,537 as of December 31, 2024).

34
Management, with the assistance of an external specialist, used statistical models to estimate the miles awarded that will not be redeemed by the program’s members (breakage) which involved significant judgments and assumptions relating to the historical redemption and expiration activity and forecasted redemption and expiration patterns.

As of January 1, 2025, the LATAM Pass Brazil program has changed the denomination of its accumulation and redemption unit, adopting the name "LATAM Pass miles" instead of "LATAM Pass points."


(f)     Legal Contingencies

In the case of known contingencies, the Company records a provision when it has a present obligation, whether legal or constructive, as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the obligation amount can be made. The assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events, the likelihood of loss being incurred and when determining whether a reliable estimate of the loss can be made. The Company assesses its liabilities and contingencies based upon the best information available, uses the knowledge, experience and professional judgment to the specific characteristics of the known risks. This process facilitates the early assessment and quantification of potential risks in individual cases or in the development of contingent matters. If we are unable to reliably estimate the obligation or conclude no loss is probable but it is reasonably possible that a loss may be incurred, no provision is recorded but the contingency is disclosed in the notes to the consolidated financial statements.

Company recognized as the present obligation under an onerous contract as a provision when a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.


(g)     Leases

In year 2022, as a result of the arrival of new aircraft and the significant change in the flows of many current contracts, the Company evaluated the relevance in the current scenario of continuing to use the implicit rate, a methodology used in recent years, or whether it should in instead use a different approximation for calculating the rate. It was concluded that the implicit rate was not being able to reflect the economic environment in which the company operates, therefore it was not accurately representing the Company's indebtedness conditions. Because of this, all new contracts entered into from 2022 and all contracts that were modified from 2022 used the incremental rate. Existing contracts that remained unchanged continued using the original implicit discount rate.

(i)Discount rate

To determine the present value of lease payments, the Company uses the implicit rate in the contracts when it is easily determinable. Otherwise, it uses the lessee's estimated incremental borrowing rate, which is derived from the information available at the lease commencement date. We consider our recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. A one percentage point decrease in our estimate of the rates used in determining the current lease liabilities for the registered fleet as of December 31, 2025, would increase the lease liability by approximately US$132 million (US$119 million as of December 31, 2024).

(ii)Lease term

In determining the lease term, all facts and circumstances that create an economic incentive to exercise an extension option are considered. Extension options (or periods after termination options) are only included in the lease term if it is reasonably certain that the lease will be extended (or not terminated). This is reviewed if a significant event or significant change in circumstances occurs that affects this assessment and is within the lessee's control.

These estimates are made based on the best information available on the events analyzed.

In any case, it is possible that events that may take place in the future make it necessary to modify them in future periods, which would be done prospectively.

35

NOTE 5 - SEGMENT INFORMATION

As of December 31, 2025, the Company considers that it has a single operating segment, Air Transport. This segment corresponds to the route network for air transport and is based on the way in which the business is managed, according to the centralized nature of its operations, the ability to open and close routes, as well as reassignment (airplanes, crew, personnel, etc.) within the network, which implies a functional interrelation between all of them, making them inseparable. This segment definition is one of the most common in the worldwide airline industry.



The Company’s revenues by geographic area are as follows:

For the year ended December 31,
20252024
ThUS$ThUS$
Peru1,285,674 1,127,532 
Argentina317,246 239,369 
U.S.A.1,446,087 1,324,008 
Europe1,100,178 957,042 
Colombia741,889 669,206 
Brazil6,098,633 5,512,471 
Ecuador390,575 364,960 
Chile2,121,331 1,927,847 
Asia Pacific and rest of Latin America763,443 710,608 
Income from ordinary activities14,265,056 12,833,043 
Other operating income229,934 200,669 

The Company allocates revenues by geographic area based on the point of sale of the passenger ticket or cargo. Assets are composed primarily of aircraft and aeronautical equipment, which are used throughout the different countries, so it is not possible to assign a geographic area.
The Company has no customers that individually represent more than 10% of sales.



36
NOTE 6 - CASH AND CASH EQUIVALENTS

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Cash on hand2,059 1,885 
Bank balances (1)761,242 664,173 
Overnight47,386 103,761 
Total Cash810,687 769,819 
Cash equivalents
Time deposits1,199,083 1,110,656 
Mutual funds140,343 77,313 
Total cash equivalents1,339,426 1,187,969 
Total cash and cash equivalents2,150,113 1,957,788 
(1) As of December 31, 2025, within the item bank balances are ThUS$702,802 related to banks accounts that pay interest to the Company for the daily or monthly balances (ThUS$590,463 as of December 31, 2024).

Cash and cash equivalents are denominated in the following currencies:

CurrencyAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Argentine peso3,354 4,228 
Brazilian real645,620 347,041 
Chilean peso207,892 17,943 
Colombian peso36,212 19,042 
Euro20,350 15,721 
US Dollar1,181,897 1,508,548 
Pound Sterling2,174 2,069 
Mexican peso6,335 4,222 
R.P. Chinese Yuan18,781 21,585 
Peruvian Sol13,465 6,297 
Other currencies14,033 11,092 
Total2,150,113 1,957,788 



37
NOTE 7 - FINANCIAL INSTRUMENTS

Financial instruments by category

As of December 31, 2025

AssetsMeasured at amortized
cost		At fair value
with changes
in results		Hedge
derivatives		Total
ThUS$ThUS$ThUS$ThUS$
Cash and cash equivalents2,009,770 140,343 — 2,150,113 
Other financial assets, current53,845 — 16,699 70,544 
Trade and others accounts receivable, current1,381,869 — — 1,381,869 
Accounts receivable from related entities, current7 — — 7 
Other financial assets, non current52,139 — — 52,139 
Accounts receivable, non current13,950 — — 13,950 
Total3,511,580 140,343 16,699 3,668,622 

LiabilitiesMeasured at
amortized
cost		Hedge
derivatives		Total
ThUS$ThUS$ThUS$
Other financial liabilities, current745,303 — 745,303 
Trade and others accounts payable, current2,684,846 — 2,684,846 
Accounts payable to related entities, current7,707 — 7,707 
Other financial liabilities, non-current7,343,223 — 7,343,223 
Accounts payable, non-current471,208 — 471,208 
Total11,252,287 — 11,252,287 


As of December 31, 2024

AssetsMeasured at
amortized
cost		At fair value
with changes
in results		Hedge
derivatives		Total
ThUS$ThUS$ThUS$ThUS$
Cash and cash equivalents1,880,475 77,313 — 1,957,788 
Other financial assets, current 51,730 — 15,565 67,295 
Trade and others accounts receivable, current1,163,707 — — 1,163,707 
Accounts receivable from related entities, current25 — — 25 
Other financial assets, non current53,772 — — 53,772 
Accounts receivable, non current12,342 — — 12,342 
Total3,162,051 77,313 15,565 3,254,929 


38
LiabilitiesMeasured at
amortized
cost		Hedge
derivatives		Total
ThUS$ThUS$ThUS$
Other financial liabilities, current635,213 — 635,213 
Trade and others accounts payable, current2,133,572 — 2,133,572 
Accounts payable to related entities, current12,875 — 12,875 
Other financial liabilities, non-current6,515,238 — 6,515,238 
Accounts payable, non-current491,762 — 491,762 
Total9,788,660 — 9,788,660 




NOTE 8 - TRADE AND OTHER ACCOUNTS RECEIVABLE CURRENT, AND NON-CURRENT ACCOUNTS RECEIVABLE

As of December 31, 2025As of December 31, 2024
ThUS$ThUS$
Trade accounts receivable1,364,217 1,132,923 
Other accounts receivable80,919 99,063 
Total trade and other accounts receivable1,445,136 1,231,986 
Less: Expected credit loss(49,317)(55,937)
Total net trade and accounts receivable1,395,819 1,176,049 
Less: non-current portion – accounts receivable(13,950)(12,342)
Trade and other accounts receivable, current1,381,869 1,163,707 

The fair value of trade and other accounts receivable does not differ significantly from the book value.

To determine the expected credit losses, the Company groups accounts receivable for passenger and cargo transportation depending on the characteristics of shared credit risk and maturity.

As of December 31, 2025As of December 31, 2024
Portfolio maturityExpected
loss rate (1) 		Gross book
value (2)		Impairment loss Provision Expected
loss rate (1) 		Gross book
value (2)		Impairment loss Provision
% ThUS$ThUS$ % ThUS$ThUS$
Up to date1%1,282,005(10,115)1%961,457(12,550)
From 1 to 90 days1%38,644(545)1%122,350(1,438)
From 91 to 180 days25%4,174(1,047)15%6,510(978)
From 181 to 360 days35%2,749(965)67%4,960(3,325)
Over 360 days100%36,645(36,645)100%37,646(37,646)
Total1,364,217(49,317)1,132,923(55,937)

(1)Corresponds to the consolidated expected rate of accounts receivable.
(2)The gross book value represents the maximum credit risk value of trade accounts receivables.



39
Currency balances composition of Trade and other accounts receivable and non-current accounts receivable are as follow:

CurrencyAs of December 31, 2025As of December 31, 2024
ThUS$ThUS$
Argentine Peso6,753 8,968 
Brazilian Real974,451 722,208 
Chilean Peso102,118 71,628 
Colombian Peso23,245 16,032 
Euro65,264 96,438 
US Dollar187,381 224,169 
Australian Dollar3,681 5,457 
Japanese Yen4,057 4,998 
Pound Sterling6,134 8,488 
Other Currencies22,735 17,663 
Total1,395,819 1,176,049 

Movements of the expected credit losses of Trade accounts receivables are as follows:

Opening balance Write-offs(Increase) Decrease Closing balance
PeriodsThUS$ ThUS$ThUS$ ThUS$
From January 1 to December 31, 2024 (64,778)4,578 4,263 (55,937)
From January 1 to December 31, 2025 (55,937)6,836 (216)(49,317)
Once pre-judicial and judicial collection efforts are exhausted, the assets are written off against the allowance. The Company only uses the allowance method rather than direct write-off, to ensure control.
The historical and current renegotiations are not significant, and the policy is to analyze case by case to classify them according to the existence of risk, determining they need to be reclassified to pre-judicial collection accounts.

The maximum credit-risk exposure at the date of presentation of the information is the fair value of each one of the categories of accounts receivable indicated above.


As of December 31, 2025 As of December 31, 2024
Gross exposure
according to
balance		Gross
impaired
exposure 		Exposure net
of risk
concentrations		Gross exposure
according to
balance		Gross
Impaired
exposure 		Exposure net
of risk
concentrations
ThUS$ThUS$ ThUS$ThUS$ThUS$ ThUS$
Trade accounts receivable1,364,217 (49,317)1,314,900 1,132,923 (55,937)1,076,986 
Other accounts receivable80,919 — 80,919 99,063 — 99,063 

There are no relevant guarantees covering credit risk and these are valued when they are settled; no materially significant direct guarantees exist. Existing guarantees, if appropriate, are made through IATA.





40
NOTE 9 - ACCOUNTS RECEIVABLE FROM/PAYABLE TO RELATED ENTITIES

(a)Accounts Receivable

Tax No.Related partyRelationshipCountry of originCurrencyAs of
December 31, 2025		As of December 31, 2024
ThUS$ThUS$
76.335.600-0Parque de Chile S.A.Related directorChileCLP— 2 
96.810.370-9Inversiones Costa Verde S.A.Related directorChileCLP— 21 
76.115.378-1Costa Verde Portafolio S.A.Related directorChileCLP7 2 
Total current assets 7 25 

(b)Accounts payable

Current liabilities
Tax No.Related partyRelationshipCountry of originCurrencyAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
ForeignQatar AirwaysIndirect shareholderQatarUS$2,375 3,576 
ForeignDelta Air Lines, Inc.ShareholderU.S.A.US$5,332 9,299 
Total current liabilities 7,707 12,875 



Transactions between related parties have been carried out on arm’s length conditions between interested and duly-informed parties. The transaction terms for the liabilities of the year 2025 correspond from 30 days to 1 year of maturity, and the nature of the settlement of transactions are monetary.




41
NOTE 10 - INVENTORIES

The composition of Inventories is as follows:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Technical stock (*)415,141 390,259 
Non-technical stock (**)43,425 48,271 
Total458,566 438,530 

(*) Correspond to spare parts and materials that will be used in both own and third-party maintenance services.

(**) Consumables of on-board services, uniforms and other indirect materials

These are valued at their average acquisition cost net of their obsolescence provision according to the following detail:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Provision for obsolescence Technical stock84,136 76,167 
Provision for obsolescence Non-technical stock8,991 8,700 
Total93,127 84,867 

The resulting amounts do not exceed the respective net realization values.

As of December 31, 2025, the Company registered ThUS$295,782 (ThUS$281,792 for the year ended December 31, 2024), the income statements, mainly related to on-board consumption and maintenance, which is part of the Cost of sales.



42
NOTE 11 - OTHER FINANCIAL ASSETS

(a)    The composition of other financial assets is as follows:

Current AssetsNon-current assetsTotal Assets
As of December 31, 2025As of December 31, 2024As of December 31, 2025As of December 31, 2024As of December 31, 2025As of December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
(1) Other financial assets
Deposits in guarantee (aircraft)25,014 23,057 35,525 32,214 60,539 55,271 
Guarantees for margins of derivatives— 466 — — — 466 
Other investments— — 493 493 493 493 
Other guarantees given28,831 28,207 16,121 21,065 44,952 49,272 
Subtotal of other financial assets53,845 51,730 52,139 53,772 105,984 105,502 
(2) Hedging derivative asset
Fair value of interest rate derivatives— 4,676 — — — 4,676 
Fair value of foreign currency derivatives2,690 3,142 — — 2,690 3,142 
Fair value of fuel price derivatives14,009 7,747 — — 14,009 7,747 
Subtotal of derivative assets16,699 15,565 — — 16,699 15,565 
Total Other Financial Assets70,544 67,295 52,139 53,772 122,683 121,067 


(b)    The balances composition by currencies of the Other financial assets are as follows:
Type of currencyAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Brazilian real14,076 13,323 
Chilean peso2,801 3,006 
Colombian peso806 1,216 
Euro4,657 4,646 
U.S.A dollar97,144 96,359 
Other currencies3,199 2,517 
Total122,683 121,067 








43
(c) Hedge derivatives

Hedging operation
The fair values of net assets/ (liabilities), by type of derivative, of the contracts held as hedging instruments are presented below:

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Fuel options(1)14,009 7,747 
Foreign currency derivative US$/BRL$(2)2,690 3,142 
Interest rate swaps (3)— 4,676 



(1)Hedge significant variations in cash flows associated with market risk implicit in the changes in the price of future fuel purchases. These contracts are recorded as cash flow hedges.

(2) Hedge significant variations in expected cash flows associated with the market risk implicit in changes in exchange rates, particularly the US$/BRL. These contracts are recorded as cash flow hedge contracts.

(3)They cover significant variations in cash flows associated with the market risk implicit in increases in the SOFR interest rate for long-term loans originated by the operational leases. These contracts are recorded as cash flow hedging contracts.
The Company only maintains cash flow hedges. In the case of fuel and currency hedges, the cash flows subject to said hedges will occur and will impact results in the next 12 months from the date of the consolidated statement of financial position.

All hedging operations have been performed for highly probable transactions. See Note 3.

See Note 24 (g) for reclassification to profit or loss for each hedging operation and Note 17 (b) for deferred taxes related.













44
NOTE 12 - OTHER NON-FINANCIAL ASSETS
The composition of other non-financial assets is as follows:

Current assetsNon-current assetsTotal Assets
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
(a) Advance payments
Aircraft insurance and other29,541 31,465 — — 29,541 31,465 
Others8,520 7,097 21,326 24,156 29,846 31,253 
Subtotal advance payments38,061 38,562 21,326 24,156 59,387 62,718 
(b) Contract assets (1)
GDS costs24,205 23,078 — — 24,205 23,078 
Credit card commissions43,238 33,590 — — 43,238 33,590 
Travel agencies commissions11,081 8,898 — — 11,081 8,898 
Subtotal advance payments78,524 65,566 — — 78,524 65,566 
(c) Other assets
Sales tax118,306 98,142 10,443 6,900 128,749 105,042 
Other taxes401 226 — — 401 226 
Contributions to the International Aeronautical Telecommunications Society (“SITA”)779 628 120 271 899 899 
Contributions to Aeronautical Service Companies— — 60 60 60 60 
Judicial deposits— 537 61,568 58,029 61,568 58,566 
Subtotal other assets119,486 99,533 72,191 65,260 191,677 164,793 
Total Other Non - Financial Assets236,071 203,661 93,517 89,416 329,588 293,077 



(1) Movement of Contracts assets:

Initial balanceActivationCumulative translation adjustment Amortization Final balance
ThUS$ThUS$ThUS$ ThUS$ ThUS$
From January 1 to December 31, 2024 72,359 233,572 (6,177)(234,188)65,566 
From January 1 to December 31, 2025 65,566 243,722 2,253 (233,017)78,524 















45



NOTE 13 - NON-CURRENT ASSETS AND DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE

Non-current assets and disposal group classified as held for sale at December 31, 2025 and December 31, 2024, are detailed below:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Current assets
Aircraft10,338 29,063 
Engines and rotables— 75 
Total10,338 29,138 

The balances are presented at the lower of book value and fair value less cost to sell. The fair value of these assets was determined based on quoted prices in active markets for similar assets or liabilities. This is a level II measurement as per the fair value hierarchy set out in Note 3.3 (2). There were no transfers between levels for recurring fair value measurements during the exercise.
Assets reclassified from Property, plant and equipment to Non-current assets or groups of assets for disposal classified as held for sale.
During 2020, 11 Boeing 767 aircraft were transferred from the property, plant and equipment to non-current assets item or groups of assets for disposal classified as held for sale. During 2021, the sale of 5 aircraft was completed. During the year 2022, the sale of 3 aircraft was completed and during the year 2023, the sale of 1 aircraft was completed. During 2025, the sale of 1 aircraft was completed.

During 2022, 28 Airbus A319 family aircraft were transferred from property, plant and equipment to non-current assets or asset groups for disposal classified as held for sale. Additionally, adjustments for US$345 million in expenses were recognized within results as part of Other gains (losses) to record these assets at their net realizable value. During 2023, the engines associated with these aircraft were added, generating additional adjustments of US$39 million, which were recorded in the result as part of Other gains (losses), in order to register these assets at their net realizable value. During the year 2024, the sale of 26 aircraft was completed. During 2025 the sale of 2 aircraft was completed.

During 2022, 6 aircraft and 8 engines of the Airbus A320 family were transferred from property, plant and equipment to non-current assets or asset groups for disposal classified as held for sale. During 2022, the sale of 3 aircraft was completed. During 2023, the sale of 2 aircraft and 8 engines were completed. During 2024, the sale of 1 aircraft was completed. During 2022, adjustments for US$25 million of expenses were recognized to record these assets at their net realizable value. Since the fleet restructuring process had already been completed, these adjustments were recorded in results as part of Other expenses by function.

During 2023, 6 Airbus A320 aircraft were transferred from the property, plant, and equipment category to the non-current assets or asset groups held for sale category. Additionally, during 2023, adjustments of US$9 million in expenses were recognized to record these assets at their net realizable value. These adjustments were recorded in the results as part of Other expenses by function. During 2024, the sale of 6 aircraft was completed.

During 2023, 1 Boeing 767 family aircraft was transferred from Property, plant and equipment to non-current assets or asset groups for disposal classified as held for sale. Additionally, adjustments for US$3 million in expenses were recognized within results as part of Other expenses by function to record these assets at their net realizable value. As of 2024, the sale of 1 Boeing 767 family aircraft was completed.

During 2025, 1 land and 1 building were transferred from Property, plant and equipment to non-current assets or asset groups for disposal classified as held for sale, with their sale being finalized during this same period.


46


The detail of the fleet classified as non-current assets and disposal group classified as held for sale is as follows:
AircraftModelAs of
December 31, 2025		As of
December 31, 2024
Boeing 767300F12
Airbus A319 (*)100—2
Total14


(*) As of December 31, 2024, 6 Airbus A320 aircraft and 26 Airbus A319 aircraft were sold and incorporated into property, plant and equipment, as of December 31, 2025, 2 Airbus A319 aircraft were sold and incorporated into property, plant and equipment, as a result of a sale and lease contract (see Note 16).


NOTE 14 - INVESTMENTS IN SUBSIDIARIES

(a)     Investments in subsidiaries
The Company has investments in companies recognized as investments in subsidiaries. All the companies defined as subsidiaries have been consolidated within the financial statements of LATAM Airlines Group S.A. and Subsidiaries. The consolidation also includes special-purpose entities.
Detail of significant subsidiaries:

Ownership
Name of significant subsidiaryCountry of
incorporation		Functional
currency 		As of
December 31, 2025		As of
December 31, 2024
%%
Latam Airlines Perú S.A.PeruUS$99.81000 99.81000 
Lan Cargo S.A.ChileUS$99.89810 99.89810 
Línea Aérea Carguera de Colombia S.A.ColombiaUS$90.46000 90.46000 
Transporte Aéreo S.A.ChileUS$100.00000 100.00000 
Latam Airlines Ecuador S.A.EcuadorUS$100.00000 100.00000 
Aerovías de Integración Regional S.A.ColombiaCOP99.23168 99.23168 
TAM Linhas aéreas S.A.BrazilBRL100.00000 100.00000 
ABSA Aerolimhas Brasileiras S.A.BrazilUS$100.00000 100.00000 
Transportes Aéreos del Mercosur S.A.ParaguayPYG94.98000 94.98000 



The consolidated subsidiaries do not have significant restrictions for transferring funds to the parent company.



47
Summary financial information of significant subsidiaries
Statement of financial position as of December 31, 2025Statement of Income for the year ended December 31, 2025
Name of significant subsidiaryTotal
Assets		Current
Assets		Non-current
Assets		Total
Liabilities		Current
Liabilities		Non-current
Liabilities		RevenueNet
Income/(loss)
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Latam Airlines Perú S.A.529,475 440,044 89,431 418,988 368,445 50,543 1,907,495 38,808 
Lan Cargo S.A.578,756 265,545 313,211 318,492 240,823 77,669 485,209 34,617 
Línea Aérea Carguera de Colombia S.A.264,677 125,232 139,445 125,058 125,024 34 266,636 26,728 
Transporte Aéreo S.A.234,376 18,502 215,874 141,333 116,085 25,248 100,743 (21,983)
Latam Airlines Ecuador S.A.192,978 171,887 21,091 184,410 165,615 18,795 331,458 (1,414)
Aerovías de Integración Regional S.A.269,540 250,548 18,992 268,593 259,002 9,591 664,969 (12,388)
TAM Linhas Aéreas S.A.4,359,338 2,655,462 1,703,876 2,701,311 1,990,369 710,942 6,747,200 501,729 
ABSA Aerolinhas Brasileiras S.A.361,700 354,481 7,219 387,627 366,290 21,337 177,717 15,036 
Transportes Aéreos del Mercosur S.A.68,642 68,216 426 27,764 25,602 2,162 65,707 20,206 
Statement of financial position as of December 31, 2024Statement of Income for the year ended December 31, 2024
Name of significant subsidiaryTotal
Assets		Current
Assets		Non-current
Assets		Total
Liabilities		Current
Liabilities		Non-current
Liabilities		RevenueNet
Income/(loss)
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Latam Airlines Perú S.A.437,768 401,748 36,020 366,089 342,838 23,251 1,723,518 22,861 
Lan Cargo S.A.490,550 169,684 320,866 263,747 184,144 79,603 413,100 27,238 
Línea Aérea Carguera de Colombia S.A.208,805 83,783 125,022 95,915 95,684 231 255,867 6,011 
Transporte Aéreo S.A.238,354 15,080 223,274 121,609 92,234 29,375 84,885 (10,064)
Latam Airlines Ecuador S.A.187,139 181,666 5,473 175,309 159,210 16,099 324,601 (9,358)
Aerovías de Integración Regional S.A.207,096 198,118 8,978 198,165 193,842 4,323 546,752 (59,836)
TAM Linhas Aéreas S.A.3,633,801 2,209,393 1,424,408 2,221,024 1,594,689 626,335 6,083,071 657,709 
ABSA Aerolinhas Brasileiras S.A.515,562 510,341 5,221 556,527 537,601 18,926 178,502 (2,163)
Transportes Aéreos del Mercosur S.A.50,132 47,469 2,663 28,225 26,314 1,911 57,120 6,395 


48
(b)     Non-controlling interests

EquityTax No.Country
of origin		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
%%ThUS$ThUS$
Latam Airlines Perú S.A.ForeignPeru0.19000 0.19000 210 136 
Aerovías de Integración Regional S.A.ForeignColombia0.77400 0.77400 (5,579)(5,517)
Linea Aérea Carguera de Colombia S.A.ForeignColombia9.54000 9.54000 (5,298)(7,848)
Transportes Aéreos del Mercosur S.A.ForeignParaguay5.02000 5.02000 2,052 1,100 
Lan Cargo S.A. and Subsidiaries93.383.000-4Chile0.10196 0.10196 223 191 
Total(8,392)(11,938)

For the year ended December 31,For the year ended December 31,
IncomesTax No.Country
of origin		2025202420252024
%%ThUS$ThUS$
Latam Airlines Perú S.AForeignPeru0.19000 0.19000 74 43 
Aerovías de Integración Regional S.A.ForeignColombia0.77400 0.77400 (96)(463)
Linea Aérea Carguera de Colombia S.A.ForeignColombia9.54000 9.54000 2,550 573 
Transportes Aéreos del Mercosur S.A.ForeignParaguay5.02000 5.02000 1,014 321 
Lan Cargo S.A. and Subsidiaries93.383.000-4Chile0.10196 0.10196 35 (1)
Total3,577 473 


49
NOTE 15 - INTANGIBLE ASSETS OTHER THAN GOODWILL

The details of intangible assets are as follows:
Classes of intangible assets
(net)		Classes of intangible assets
(gross)
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$
Airport slots602,677 535,531 602,677 535,531 
Loyalty program193,247 171,717 193,247 171,717 
Computer software180,453 171,144 775,506 661,731 
Developing software147,728 119,376 147,728 119,376 
Other assets5,856 2,402 7,171 3,717 
Total1,129,961 1,000,170 1,726,329 1,492,072 


a)Movement in Intangible assets other than goodwill:

Computer
software and others
Net		Developing
software		Airport
slots		Loyalty
program		Total
ThUS$ThUS$ThUS$ThUS$ThUS$
Opening balance as of January 1, 2024 156,391 117,010 658,949 219,636 1,151,986 
Additions221 101,379 22,666 — 124,266 
Withdrawals(2)(393)— — (395)
Transfer software and others96,098 (95,971)— — 127 
Foreign exchange(6,607)(2,649)(146,084)(47,919)(203,259)
Amortization(72,555)— — — (72,555)
Closing balance as of December 31, 2024173,546 119,376 535,531 171,717 1,000,170 
Opening balance as of January 1, 2025173,546 119,376 535,531 171,717 1,000,170 
Additions48 124,911 — — 124,959 
Withdrawals(4)(133)— — (137)
Transfer software and others100,090 (97,255)— — 2,835 
Foreign exchange3,851 832 67,146 21,530 93,359 
Amortization(91,225)— — — (91,225)
Closing balance as of December 31, 2025 186,306 147,731 602,677 193,247 1,129,961 
The amortization of each period is recognized in the consolidated income statement within administrative expenses.
The cumulative amortization of computer software and others as of December 31, 2025 amounts to ThUS$596,368 (ThUS$491,902 as of December 31, 2024).


b)     Impairment Test Intangible Assets with an indefinite useful life

As of December 31, 2025, the Company maintains only the CGU “Air Transport”.

The CGU “Air transport” considers the transport of passengers and cargo, both in the domestic markets of Chile, Peru, Argentina, Colombia, Ecuador and Brazil, as well as in a series of regional and international routes in America, Europe, Africa and Oceania.

50


As of December 31, 2025, in accordance with the accounting policy, the Company performed the annual impairment test.

The recoverable amount of the CGU was determined based on calculations of the value in use. These calculations use projections of 5 years of cash flows after taxes from the financial budgets approved by management. Cash flows beyond the budgeted period are extrapolated using growth rates and estimated average volumes, which do not exceed long-term average growth rates.

Management’s cash flow projections included significant judgements and assumptions related to annual revenue growth rates, discount rate, inflation rates, the exchange rate and the price of fuel. The annual revenue growth rate is based on past performance and management’s expectations of market development in each of the countries in which it operates. The discount rates used for the CGU "Air transport" are determined in US dollars, after taxes, and reflect specific risks related to the relevant countries of each of the operations. Inflation rates and exchange rates are based on the data available from the countries and the information provided by the Central Banks of the various countries where it operates, and the price of fuel is determined based on estimated levels of production, the competitive environment of the market in which they operate and their commercial strategy.

The recoverable values were determined using the following assumptions:

CGU
Air transport
Annual growth rate (Terminal)%0.0 – 4,6
Exchange rateR$/US$5,6 – 5,8
Discount rate based on the Weighted Average Cost of Capital (WACC)%8,0 – 10,0
Fuel PriceUS$/barrel90


The result of the impairment test, which includes a sensitivity analysis of its main variables, showed that the recoverable amount exceeded the book value of the cash-generating unit, and therefore no impairment was identified.

The CGU is sensitive to annual growth rates, discounts and exchange rates and fuel price. The sensitivity analysis included the individual impact of changes in critical estimates in determining recoverable amounts, namely:
Increase
WACC
Maximum		Decrease rate
Terminal growth
Minimal		Increase
fuel price
Maximum
US$/barrel
%%
Air Transportation CGU10.0 — 90 

In none of the above scenarios an impairment of the cash-generating unit was identified.

51
NOTE 16 - PROPERTY, PLANT AND EQUIPMENT

The composition by category of Property, plant and equipment is as follows:

Gross Book ValueAccumulated depreciationNet Book Value
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
a) Property, plant and equipment
Construction in progress (1)682,773 479,871 — — 682,773 479,871 
Land39,778 39,818 — — 39,778 39,818 
Buildings124,298 120,736 (66,759)(60,313)57,539 60,423 
Plant and equipment13,340,403 11,727,067 (5,691,286)(5,085,126)7,649,117 6,641,941 
Own aircraft (3)12,056,302 10,678,834 (5,405,503)(4,831,914)6,650,799 5,846,920 
Other (2)1,284,101 1,048,233 (285,783)(253,212)998,318 795,021 
Machinery26,081 24,005 (25,091)(22,927)990 1,078 
Information technology equipment169,597 158,900 (149,900)(139,607)19,697 19,293 
Fixed installations and accessories209,524 174,859 (142,509)(126,886)67,015 47,973 
Motor vehicles50,118 48,320 (44,668)(42,323)5,450 5,997 
Leasehold improvements255,494 236,509 (71,048)(61,760)184,446 174,749 
Subtotal Properties, plant and equipment14,898,066 13,010,085 (6,191,261)(5,538,942)8,706,805 7,471,143 
b) Right of use
Aircraft6,636,160 5,810,997 (3,581,466)(3,262,942)3,054,694 2,548,055 
Other assets418,923 398,017 (233,408)(230,518)185,515 167,499 
Subtotal Right of use7,055,083 6,209,014 (3,814,874)(3,493,460)3,240,209 2,715,554 
Total21,953,149 19,219,099 (10,006,135)(9,032,402)11,947,014 10,186,697 

(1) As of December 31, 2025, includes advances paid to aircraft and engine manufacturers for ThUS$616,569 (ThUS$452,765 as of December 31, 2024).
(2)     Consider mainly rotables and tools.
(3) As of December 31, 2025 , were transferred from right-of-use assets to property, plant and equipment, 13 aircraft: 11 Airbus A321 for ThUS$255,200 and 2 Boeing B787-8 for ThUS$86.000. As of December 31, 2024 were transferred from right-of-use assets to property, plant and equipment, 9 aircraft, 3 Airbus A320 for ThUS$34,760 and 6 Boeing B777 for ThUS$296,198.



52
(a)        Movement in the different categories of Property, plant and equipment:

Construction
in progress 		Land Buildings
net 		Plant and
equipment
net 		Information
technology
equipment
net 		Fixed
installations
& accessories
net 		Motor
vehicles
net 		Leasehold
improvements
net 		Property,
Plant and
equipment
net
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Opening balance as January 1, 2024258,246 44,244 67,558 6,236,344 17,342 54,410 351 213,430 6,891,925 
Additions20,754 — — 1,215,040 9,669 421 — 8,289 1,254,173 
Disposals— — — (2,940)(8)— (2)— (2,950)
Retirements— — — (56,148)(91)(89)— — (56,328)
Depreciation expenses— — (3,992)(771,104)(5,724)(8,877)(65)(9,790)(799,552)
Foreign exchange(1,354)(4,426)(3,143)(108,966)(1,780)(5,401)— (39,593)(164,663)
Other increases (decreases)202,225 — — 136,506 (115)7,509 — 2,413 348,538 
Changes, total221,625 (4,426)(7,135)412,388 1,951 (6,437)(67)(38,681)579,218 
Closing balance as of December 31, 2024 479,871 39,818 60,423 6,648,732 19,293 47,973 284 174,749 7,471,143 
Opening balance as of January 1, 2025479,871 39,818 60,423 6,648,732 19,293 47,973 284 174,749 7,471,143 
Additions62,087 — — 2,002,514 5,784 1,482 82 335 2,072,284 
Disposals— — (42)(63,381)(112)— — — (63,535)
Retirements(8)— — (117,315)(215)(164)— (184)(117,886)
Depreciation expenses— — (4,012)(911,110)(6,249)(9,258)(111)(8,369)(939,109)
Foreign exchange(297)1,649 1,423 55,918 1,206 3,643 34 17,903 81,479 
Other increases (decreases)141,120 (1,689)(253)39,849 (10)23,339 61 12 202,429 
Changes, total202,902 (40)(2,884)1,006,475 404 19,042 66 9,697 1,235,662 
Closing balance as of December 31, 2025 682,773 39,778 57,539 7,655,207 19,697 67,015 350 184,446 8,706,805 



53
(b)    Right of use assets:

Aircraft Others Net right
of use
assets
ThUS$ ThUS$ ThUS$
Opening balance as January 1, 20242,145,082 54,123 2,199,205 
Additions (*)601,723 50,838 652,561 
Depreciation expense(284,234)(27,315)(311,549)
Cumulative translate adjustment48 (8,317)(8,269)
Other increases (decreases)85,436 98,170 183,606 
Total changes402,973 113,376 516,349 
Closing balance as of December 31, 2024 2,548,055 167,499 2,715,554 
Opening balance as of January 1, 20252,548,055 167,499 2,715,554 
Additions (*)835,048 32,115 867,163 
Depreciation expense(395,227)(28,863)(424,090)
Cumulative translate adjustment— 9,630 9,630 
Other increases (decreases) 66,818 5,134 71,952 
Total changes506,639 18,016 524,655 
Closing balance as of December 31, 2025 3,054,694 185,515 3,240,209 

(*) As of December 31, 2024, the additions of 6 Airbus A320 aircraft and 26 Airbus A319 aircraft, as of December 31, 2025, the additions of 2 Airbus A319 aircraft, as a result of a sale and leaseback agreement.



(c)    Fleet composition
Aircraft included
in Property,
plant and equipment		Aircraft included
as Rights
of use assets		Total fleet
AircraftModelAs of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
Boeing 767300ER99(1)——99
Boeing 767300F1818(1)111919
Boeing 777300ER1010(2)—0(2)1010
Boeing 78786(2)44(2)61010
Boeing 78792226252827
Airbus A319100111128273938
Airbus A3202008686(2)4949(2)135135
Airbus A320NEO7344275130
Airbus A32120030(2)1919(2)304949
Airbus A321NEO3—14141714
Airbus A330200——3(3)2(3)32
Total182162188181370343



(1) Considers conversions from Boeing 767-300ER (passenger) to Boeing 767-300F (freighter) Aircraft.
(2) As of December 31, 2025, 13 aircraft from these fleets (11 Airbus A321 and 2 Boeing 787-8) were transferred from right-of-use assets to property, plant and equipment.As of December 31, 2024, 9 aircraft from these fleets (3 Airbus A320 and 6 Boeing B777) were transferred from right-of-use assets to property, plant and equipment.

(3) As of December 31, 2025, 3 A330-200 aircraft remain in the fleet under an operating lease with WAMOS.


54
As of December 31, 2024, the Company recorded 181 aircraft classified as right-of-use assets. On page 86 of the 2024 Integrated Annual Report submitted to the Financial Market Commission (CMF), this information was presented with the column headings for the fleet composition reversed. However, the information is correctly reported in the 2024 financial statements issued and attached to the annual report.

(d)    Method used for the depreciation of Property, plant and equipment:

Useful life (years)
Depreciation methodminimummaximum
BuildingsStraight line without residual value2050
Plant and equipmentStraight line with residual value (*)530
Information technology equipmentStraight line without residual value510
Fixed installations and accessoriesStraight line without residual value1010
Motor vehicleStraight line without residual value1010
Leasehold improvementsStraight line without residual value58
Assets for rights of useStraight line without residual value125

(*) A useful life of 25 years for the short-haul fleet and a range of 20 to 30 years for the long-haul fleet. Residual values are estimated based on the projected market value of the assets at the end of their lives.


55


(e)     Additional information regarding Property, plant and equipment:
(i)     Property, plant and equipment pledged as guarantee:
Description of Property, plant and equipment pledged as guarantee:

As of
December 31, 2025		As of
December 31, 2024
Guarantee
agent (1)		Creditor
company		Committed
Assets		FleetExisting
Debt		Book
Value		Existing
Debt		Book
Value
ThUS$ThUS$ThUS$ThUS$
WilmingtonWilmington Trust CompanyAircraft and enginesBoeing 77799,775 160,418 115,727 132,643 
Credit AgricoleCredit AgricoleAircraft and enginesAirbus A3193,331 1,409 4,441 2,401 
Airbus A320178,598 118,362 238,131 114,450 
Airbus A3215,266 3,443 7,022 3,920 
Boeing 78787,817 54,259 117,089 45,703 
Bank Of UtahBNP ParibasAircraft and enginesBoeing 787146,535 186,545 159,624 196,134 
BOCOMMBOCOMMAircraft and enginesAirbus A320N242,188 254,760 — — 
CCBCCBAircraft and enginesAirbus A320N170,208 176,722 — — 
UMB BankNatixisAircraft and enginesAirbus A321218,473 241,106 — — 
Total direct guarantee1,152,191 1,197,024 642,034 495,251 

(1)For syndicated loans, given their own characteristics, the guarantee agent is the representative of the creditors.

The amounts of the current debts are presented at their nominal value. The net book values correspond to the assets granted as collateral.

Additionally, there are indirect guarantees associated with assets booked within Property, Plant and Equipment whose total debt as of December 31, 2025, amounts to Th$US$687,015 (ThUS$897,783 as of December 31, 2024). The book value of the assets with indirect guarantees as of December 31, 2025, amounts to ThUS$1,182,689 (ThUS$1,734,431 as of December 31, 2024).
















56
As of December 31, 2025, the Company keeps valid letters of credit related to right of use assets according to the following detail:

Creditor GuaranteeDebtorTypeValue
ThUS$		Release
date
Empreendimientos ImobiliáriosTAM Linhas Aéreas S.A.One letter of credit19,446 Apr 29, 2026
AerCapLATAM Airlines Group S.A.Six letters of credit6,000 Jul 30, 2026
AircastleLATAM Airlines Group S.A.Three letters of credit834 Dec 4, 2026
BOC AviationLATAM Airlines Group S.A.Four letters of credit3,216 Oct 21, 2026
Brophunding Aviation HouseLATAM Airlines Group S.A.Two letters of credit2,000 Dec 4, 2026
Celestial Aviation ServicesLATAM Airlines Group S.A.Eight letters of credit13,586 Jan 20, 2026
Celestial Aviation (48)LATAM Airlines Group S.A.One letter of credit9,660 Aug 30, 2026
DAE CapitalLATAM Airlines Group S.A.Three letters of credit1,844 Dec 4, 2026
Dune Aviation (15)LATAM Airlines Group S.A.One letter of credit733 Dec 3, 2026
GE Capital AviationLATAM Airlines Group S.A.Nine letters of credit2,827 Feb 5, 2026
GY Aviation Lease 1910LATAM Airlines Group S.A.One letter of credit1,020 Oct 24, 2026
Jackson Square AviationLATAM Airlines Group S.A.Four letters of credit1,220 Dec 2, 2026
MAM Engine LeasingLATAM Airlines Group S.A.Eight letters of credit1,420 Nov 17, 2026
MarinescuLATAM Airlines Group S.A.Four letters of credit5,800 Sep 9, 2026
Maverick LeasingLATAM Airlines Group S.A.Three letters of credit2,359 Nov 14, 2026
Orix Aviation SystemsLATAM Airlines Group S.A.One letter of credit730 Nov 21, 2026
Pembroke Aircraft Leasing (1)LATAM Airlines Group S.A.Two letters of credit1,496 Dec 3, 2026
PK AirFinanceLATAM Airlines Group S.A.Three letters of credit1,560 Nov 5, 2026
SMBC Aviation CapitalLATAM Airlines Group S.A.Three letters of credit1,005 Oct 29, 2026
Star Rising Aviation (45)LATAM Airlines Group S.A.Five letters of credit1,979 Oct 28, 2026
Avolon / UMB Bank N.A.LATAM Airlines Group S.A.Three letters of credit1,524 Aug 30, 2026
80,259 
Creditors are presented under abbreviated denominations for presentation purposes.

(ii)    Commitments and others

Fully depreciated assets and commitments for future purchases are as follows:

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Gross book value of fully depreciated property, plant and equipment still in use358,092 326,642 
Commitments for the acquisition of aircraft (*)21,276,000 20,400,000 

(*) According to the manufacturer’s price list.

Aircraft purchase commitments:
Year of delivery
Manufacturer2026202720282029-2030Total
Airbus S.A.S.
A320neo Family158342178
Embraer S.A.
Embraer 195-E21212——24
The Boeing Company
Boeing 787-9——6915
Total27204030117

57

As of December 31, 2025, as a result of the different aircraft purchase contracts signed with Airbus S.A.S., 78 Airbus A320 family aircraft remain to be received, with deliveries between 2026 and 2030. The approximate amount, according to manufacturer list prices, is ThUS$12,563,000.

As of December 31, 2025, as a result of the different aircraft purchase contracts signed with Embraer S.A., 24 195-E2 aircraft remain to be received, with deliveries between 2026 and 2027. The approximate amount, according to manufacturer list prices, is ThUS$2,392,000.

As of December 31, 2025, as a result of the different aircraft purchase contracts signed with The Boeing Company, 15 Boeing aircraft of the 787 with deliveries between 2028 and 2030, remain to be received. The approximate amount, according to manufacturer list prices, is ThUS$6,321,000.

The delivery dates of some of these aircraft could be modified as a result of the continuous discussions that are held with suppliers in the context of the current manufacturers' supply chain.

With respect to the purchase agreements entered into with EMBRAER S.A., it should be noted that the Purchase Agreement includes an order for 24 firm aircraft and 50 purchase options. Accordingly, the preceding paragraph refers exclusively to the 24 firm aircraft included in such agreement.


Aircraft operational lease commitments:


As of December 31, 2025, under various aircraft operating lease agreements entered into by the Company, the following fleet commitments are pending delivery:

•AerCap Holdings N.V.: 3 Boeing 787 Dreamliner aircraft, with deliveries scheduled in 2026.

•CDB Aviation Lease Finance DAC: 5 Airbus A320Neo family aircraft, with deliveries scheduled in 2026.

•Air Lease Corporation: 5 Airbus A321XLR model aircraft, with deliveries scheduled between 2027 and 2028.

•Wilmington Trust SP Services Limited: 6 Airbus A320Neo family aircraft, with deliveries scheduled in 2025.

•Oriental Leasing 63 Company Limited: 3 Airbus A320Neo family aircraft, with deliveries scheduled in 2026.



(iii)    Capitalized interest costs with respect to Property, plant and equipment.

For the year ended December 31,
20252024
Average rate of capitalization of capitalized interest costs%6.72 10.77 
Costs of capitalized interestThUS$29,627 27,506 


58

NOTE 17 - CURRENT AND DEFERRED TAXES

In the year ended December 31, 2025, the income tax provision was calculated and recorded, applying the semi-integrated tax system and a rate of 27%, based on the provisions of the Law. No. 21,210, published in the Official Gazette of the Republic of Chile, dated February 24, 2020, which updates the Tax Legislation.
The net result for deferred tax corresponds to the variation of the period, of the assets and liabilities for deferred taxes generated by temporary differences and tax losses.
For the permanent differences that give rise to a book value of assets and liabilities other than their tax value, no deferred tax has been recorded since they are caused by transactions that are recorded in the financial statements and that will have no effect on income tax expense.
(a)Current taxes
(a.1)    The composition of the current tax assets is the following:
Current assetsNon-current assetsTotal assets
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Provisional monthly payments (advances)31,105 14,616 — — 31,105 14,616 
Other recoverable credits44,599 25,659 — — 44,599 25,659 
Total current tax assets75,704 40,275 — — 75,704 40,275 

(a.2)    The composition of the current tax liabilities are as follows:
Current liabilitiesNon-current liabilitiesTotal liabilities
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Income tax provision(*)31,950 6,281 — — 31,950 6,281 
Total current tax liabilities31,950 6,281 — — 31,950 6,281 


(*) As of December 31, 2025, a tax credit for foreign taxes was generated in Holdco I S.A. for ThUS$9,489 and in LATAM Airlines Group S.A. for ThUS$75,201. These credits, which result from the dividends distributed by TAM S.A. during 2025, may be applied against the corporate income tax once all tax losses have been used. Since LATAM Airlines Group S.A. has tax losses and these credits are recognized to the extent that the realization of the corresponding tax benefit in the future is probable, the Company did not to recognize such credits.











59


(b)    Deferred taxes
The balances of deferred tax are the following:
Assets Liabilities
ConceptAs of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ ThUS$ ThUS$ ThUS$
Properties, Plants and equipment(822,553)(821,883)51,410 53,543 
Assets by right of use(854,709)(720,694)49 109 
Lease Liabilities1,001,622 892,657 (113)(113)
Amortization(108,451)(101,193)— — 
Provisions118,404 80,355 82,348 76,280 
Tax losses670,413 664,990 (75,847)(68,493)
Intangibles— — 264,333 234,854 
Other16,372 16,317 16,494 16,497 
Total21,098 10,549 338,674 312,677 
The balance of deferred tax assets and liabilities are composed primarily of temporary differences to be reversed in the long term.

Movements of Deferred tax assets and liabilities:


(b.1)      From January 1 to December 31, 2024
Opening
balance
Assets/(liabilities) 		Recognized in
consolidated
income 		Recognized in
comprehensive
income 		Exchange
rate
variation		Ending
balance
Asset (liability)
ThUS$ ThUS$ ThUS$ ThUS$ThUS$
Property, plant and equipment(1,011,881)136,455 — — (875,426)
Assets for right of use(586,011)(134,792)— — (720,803)
Lease Liabilities792,855 99,915 — — 892,770 
Amortization(112,012)10,819 — — (101,193)
Provisions141,318 (138,152)909 — 4,075 
Revaluation of financial instruments(889)889 — — — 
Tax losses (*)699,584 33,899 — — 733,483 
Intangibles(300,359)496 — 65,009 (234,854)
Others(182)2 — — (180)
Total(377,577)9,531 909 65,009 (302,128)
b.2)     From October 1 to December 31, 2024








60


(b.2)     From January 1 to December 31, 2025

Opening
balance
Assets/(liabilities) 		Recognized in
consolidated
income 		Recognized in
comprehensive
income 		Exchange
rate
variation 		Ending
balance
Asset (liability)
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Property, plant and equipment(875,426)1,463 — — (873,963)
Assets for right of use(720,803)(133,955)— — (854,758)
Lease Liabilities892,770 108,965 — — 1,001,735 
Amortization(101,193)(7,258)— — (108,451)
Provisions4,075 31,319 662 — 36,056 
Tax losses (*)733,483 12,777 — — 746,260 
Intangibles(234,854)(507)— (28,972)(264,333)
Others(180)58 — — (122)
Total(302,128)12,862 662 (28,972)(317,576)



(*) Unrecognized deferred tax assets:

Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be generated in the future. In total the Company has not recognized deferred tax assets for ThUS$2,914,298 at December 31, 2025 (ThUS$3,263,150 as of December 31, 2024) which include deferred tax assets related to negative tax results of ThUS$10,460,187 at December 31, 2025 (ThUS$11,736,014 at December 31, 2024).



(Expenses) / Income from deferred taxes and income tax:
For the year ended December 31,
20252024
ThUS$ ThUS$
Income tax (expense)/benefit
Current tax (expense) benefit(167,919)(26,263)
Total current tax (expense) benefit(167,919)(26,263)
Deferred income taxes
(Expense)/benefit for deferred tax recognition for tax losses (*)— 243 
Deferred income for relative taxes to the creation and reversal of temporary differences12,862 9,531 
Total deferred income tax12,862 9,774 
Income tax (expense)/benefit(155,057)(16,489)











61


Income tax (expense) / Income benefit:
For the year ended December 31,
20252024
ThUS$ ThUS$
Current tax (expense) benefit, foreign(156,303)(54,190)
Current tax (expense) benefit, domestic(11,616)27,927 
Total current tax (expense) benefit(167,919)(26,263)
Foreign Deferred tax (expense) benefit, for tax losses compensation (*)— 243 
Deferred tax (expense) benefit, foreign4,994 5,553 
Deferred tax (expense) benefit, domestic7,868 3,978 
Total deferred tax (expense)benefit12,862 9,774 
Income tax (expense)/benefit(155,057)(16,489)


(*) As a result of an agreement reached with the Brazilian tax authority, in the 2024 TAM Linhas Aereas S.A. was authorized to use part of its available tax losses to pay some tax contingencies. As the company does not recognize a deferred tax asset for its available tax losses, it was necessary to register an income in order to write off the liability previously recognized regarding the relevant tax contingencies.


Income before tax from the Chilean legal tax rate (27% as of December 31, 2025 and 2024)

For the year ended December 31,For the year ended December 31,
2025202420252024
ThUS$ ThUS$ % %
Income tax benefit/(expense) using the legal tax rate(437,027)(268,362)(27.00)(27.00)
Tax effect of rates in other jurisdictions(49,968)(46,580)(3.09)(4.69)
Tax effect of non-taxable income7,819 81,612 0.48 8.21 
Tax effect of disallowable expenses(19,016)(12,780)(1.17)(1.29)
Other increases (decreases):
Derecognition of deferred tax liabilities for early termination of aircraft financing20,982 37,793 1.30 3.80 
Unrecognised deferred tax293,388 159,430 18.13 16.04 
Other increases (decreases)28,765 32,398 1.77 3.27 
Total adjustments to tax expense using the legal rate281,970 251,873 17.42 25.34 
Income tax benefit/(expense) using the effective rate(155,057)(16,489)(9.58)(1.66)












62
Deferred taxes related to items charged to equity:
For the year ended December 31,
20252024
ThUS$ThUS$
Aggregate deferred taxation of components of other comprehensive income662 909 

NOTE 18 - OTHER FINANCIAL LIABILITIES

The composition of other financial liabilities is as follows:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Current
(a) Interest bearing loans314,681 271,753 
(b) Lease Liability430,622 363,460 
Total current745,303 635,213 
Non-current
(a) Interest bearing loans3,980,984 3,516,117 
(b) Lease Liability3,362,239 2,999,121 
Total non-current7,343,223 6,515,238 






























63
(a)    Interest bearing loans

Obligations with credit institutions and debt instruments:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Current
Guaranteed obligations (4)(5)47,466 34,083 
Other guaranteed obligations (1) (6)70,805 23,682 
Subtotal bank loans118,271 57,765 
Obligation with the public (2) (3)56,172 46,256 
Financial leases (7)140,238 167,732 
Total current 314,681 271,753 
Non-current
Guaranteed obligations (4) (5)610,169 339,960 
Other guaranteed obligations (1) (6)500,394 351,069 
Subtotal bank loans1,110,563 691,029 
Obligation with the public (2) (3)2,321,606 2,193,047 
Financial leases (7)548,815 632,041 
Total non-current 3,980,984 3,516,117 
Total obligations with financial institutions 4,295,665 3,787,870 


(1) The Company has three committed credit lines, or “Revolving Credit Facilities (RCF),” which are secured. As of July 15, 2024, two credit lines were amended and extended until July 2029, with amounts of US$800 million and US$750 million, respectively. Then, as of November 4, 2024 a third credit line was made available:

(a) The first committed credit line, or “RCF I,” amounting to US$800 million, is secured by aircraft, engines, and spare parts. This credit line is fully available as of December 31, 2025.

(b) The second committed credit line, or “RCF II,” amounting to US$750 million, is secured by intangible assets primarily related to the FFP business (LATAM Pass loyalty program), as well as intellectual property and certain LATAM trademarks. This credit line is fully available as of December 31, 2025.

(c)On November 4, 2024, the Company obtained a new credit line under a “Spare Engine Facility” for US$300 million (US$275 million drawn as of December 31, 2025), maturing on November 4, 2028. This amount was used to repay the previous “Spare Engine Facility” for US$275 million, maturing on November 3, 2027. This financing includes a minimum liquidity covenant, which requires the Company to maintain minimum liquidity, measured at the consolidated level (LATAM Airlines Group S.A.), of US$750 million, and an additional covenant, measured individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A., with a minimum combined level of US$400 million. If these covenants are not met, the obligations could be accelerated, at the creditors’ request, to short-term obligations. As of December 31, 2025, the Company complies with the aforementioned minimum liquidity covenants.

(2) As of October 15, 2024, the Company issued, placed, and received funds from international markets through guaranteed bonds amounting to US$1.4 billion, with an annual interest rate of 7.875% and maturing in 2030 (the “2030 Notes”), issued under Rule 144-A and Regulation S of the United States Securities and Exchange Commission, pursuant to the United States Securities Act of 1933 (the “US Securities Act”). During the quarter ended December 31, 2025, the 2030 Notes included a minimum liquidity covenant, which required

64
the Company to maintain minimum liquidity, measured at the consolidated level (LATAM Airlines Group S.A.), of US$750 million. If this covenant is not met, the obligations could be accelerated at the creditors' request to become short-term obligations. As of December 31, 2025, the Company is in compliance with the aforementioned minimum liquidity covenant.

(3) On July 7, 2025, the Company issued, placed, and received funds from the international markets through the issuance of secured bonds for a total principal amount of US$800 million, bearing an annual interest rate of 7.625% and maturing in 2031 (the “2031 Notes”), pursuant to Rule 144A and Regulation S of the U.S. Securities and Exchange Commission under the U.S. Securities Act of 1933 (the “U.S. Securities Act”). During the quarter ended December 31, 2025, the 2031 Notes included a minimum liquidity covenant, which required the Company to maintain minimum liquidity, measured at the consolidated level (LATAM Airlines Group S.A.), of US$750 million. If this covenant is not met, the obligations could be accelerated at the creditors' request to become short-term obligations. As of December 31, 2025, the Company is in compliance with the aforementioned minimum liquidity covenant.

(4) On December 23 and 30, 2024, two A320neo aircraft were delivered by Airbus. These aircraft were purchased through aircraft financing of US$50 million each, with Bank of Communications Co., Ltd. (“BOCOMM”) as the counterparty. Then, on March 25, 2025, one more A320neo was received with the same conditions and same counterparty. On May 6 and June 21, 2025, the last two A320neo aircraft were delivered by Airbus. These aircraft were financed through aircraft financing with Bank of Communications Co., Ltd. (“BOCOMM”) for the same amount.

(5) On June 16, 2025, one A321neo aircraft was delivered by Airbus. This aircraft was purchased through aircraft financing of US$57 million with China Construction Bank Aviation Capital DAC (“CCB”) as the counterparty. This delivery represents the first of five aircraft to be acquired under these terms and with this counterparty. Then, on October 15 and on December 22, 2025, two more A321neo aircraft were received with the same conditions and same counterparty. These deliveries represent the second and third of five aircraft to be acquired under these terms and with this counterparty.

(6) On June 27, 2025, a secured financing agreement was executed for 11 owned A321 model aircraft. The total amount of this aircraft financing was US$242 million, with Natixis and Sumitomo Mitsui Banking Corporation (“SMBC”) as counterparties.

(7) On October 9, 2025, one A320neo aircraft was delivered by Airbus. This aircraft was purchased through aircraft financing of US$52.5 million with BOC Aviation Limited (“BOC”) as the counterparty. This delivery represents the first of three aircraft to be acquired under these terms and with this counterparty.



Balances by currency of interest bearing loans are as follows:
As of
December 31, 2025		As of
December 31, 2024
CurrencyThUS$ThUS$
Chilean peso (U.F.)165,158 147,716 
US Dollar4,130,507 3,640,154 
Total4,295,665 3,787,870 


65
Interest-bearing loans due in installments to December 31, 2025
Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.
Nominal valuesAccounting values
Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More than
five
years		Total
nominal
value		Up to
90
days		More
than
90 days
to one
year		More
than
one to
three
years		More than
three to
five
years		More than
five
years		Total
accounting
value		AmortizationAnnual
Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Obligations with the public
97.036.000-KSANTANDERChileUF— — — — 164,400 164,400 — 558 — — 164,600 165,158 At Expiration2.00 2.00 
97.036.000-KSANTANDERChileUS$— — — — 3 3 — — — — 3 3 At Expiration1.00 1.00 
0-EWILMINGTON TRUST COMPANYU.S.A.US$— — — 1,400,000 800,000 2,200,000 31,112 24,502 — 1,373,868 783,135 2,212,617 At Expiration8.46 7.78 
Guaranteed obligations
0-EBNP PARIBASU.S.A.US$3,372 10,311 28,945 31,314 72,593 146,535 4,023 10,311 28,344 30,950 72,592 146,220 Quarterly5.38 5.38 
0-EWILMINGTON TRUST COMPANYU.S.A.US$4,062 12,311 34,050 49,352 — 99,775 4,062 12,311 34,050 49,351 — 99,774 Quarterly/Monthly5.81 5.81 
0-EBOCOMMIrlandaUS$2,604 7,813 20,833 20,833 190,105 242,188 3,255 7,813 20,208 20,417 188,799 240,492 Quarterly5.83 5.83 
0-ECCBIrlandaUS$1,187 3,562 9,500 9,500 146,459 170,208 2,129 3,562 9,500 9,500 146,458 171,149 Quarterly5.75 5.75 
Other guaranteed obligations
0-ECITIBANKU.S.A.US$— — — — — — 22 — — — — 22 Quarterly1.00 1.00 
0-EJP MORGAN CHASEU.S.A.US$— — — — — — 209 — — — — 209 Quarterly0.63 0.63 
0-ECREDIT AGRICOLEFranceUS$— — 275,012 — — 275,012 2,719 — 272,829 — — 275,548 At Expiration5.94 5.94 
0-ENATIXISU.S.A.US$11,763 35,290 94,108 44,178 33,134 218,473 11,831 35,290 93,045 43,470 32,605 216,241 Quarterly5.39 5.39 
0-EEXIM BANKU.S.A.US$5,094 15,417 42,124 16,321 — 78,956 5,317 15,417 42,124 16,321 — 79,179 Quarterly2.03 1.79 
Financial leases
0-ENATIXISFranceUS$6,824 20,707 56,972 82,239 166,742 8,106 20,707 56,646 82,147 167,606 Quarterly6.12 6.12 
0-EEXIM BANKU.S.A.US$23,673 68,176 141,222 59,589 13,203 305,863 24,824 68,176 140,999 59,589 13,203 306,791 Quarterly3.54 2.68 
0-EBANK OF UTAHU.S.A.US$3,170 10,019 37,304 37,835 61,655 149,983 3,170 10,019 37,304 37,835 61,655 149,983 Monthly10.46 10.46 
0-EBOC AviationU.S.A.US$592 1,832 5,327 6,038 38,711 52,500 1,364 1,832 5,197 5,950 38,404 52,747 Quarterly6.31 6.31 
Total62,341 185,438 745,397 1,757,199 1,520,263 4,270,638 102,143 210,498 740,246 1,729,398 1,501,454 4,283,739 










66
Interest-bearing loans due in installments to December 31, 2025
Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil
Nominal valuesAccounting valuesAnnual
Up to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More
than
five
years		Total
nominal
value		Up to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More
than
five
years		Total
accounting
value		Amortization
Tax No.Creditor
Country		CurrencyEffective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Financial lease
0-ENATIXISFranceUS$510 1,530 9,886 — — 11,926 510 1,530 9,886 — — 11,926 Quarterly— — 
Total510 1,530 9,886 — — 11,926 510 1,530 9,886 — — 11,926 
Total consolidated62,851 186,968 755,283 1,757,199 1,520,263 4,282,564 102,653 212,028 750,132 1,729,398 1,501,454 4,295,665 

















67
Interest-bearing loans due in installments to December 31, 2024
Debtor: LATAM Airlines Group S.A. and Subsidiaries, Tax No. 89.862.200-2, Chile.

Nominal valuesAccounting valuesAmortizationAnnual
Tax No.CreditorCreditor
country		CurrencyUp to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More
than
five
years		Total
nominal
value		Up to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More
than
five
years		Total
accounting
value		Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Obligations with the public
97.036.000- KSANTANDERChileUF— — — — 147,217 147,217 — 499 — — 147,217 147,716 At Expiration2.00 2.00 
97.036.000- KSANTANDERChileUS$— — — — 3 3 — — — — 3 3 At Expiration1.00 1.00 
0-EWILMINGTON TRUST COMPANYU.S.A.US$— — — 700,000 1,400,000 2,100,000 — 45,757 — 678,079 1,367,748 2,091,584 At Expiration10.69 9.71 
Guaranteed obligations
0-EBNP PARIBASU.S.A.US$3,226 9,863 27,888 30,093 88,554 159,624 4,020 9,863 27,262 29,715 88,375 159,235 Quarterly6.03 6.03 
0-EWILMINGTON TRUST COMPANYU.S.A.US$3,960 11,992 33,179 34,951 31,645 115,727 3,960 11,992 33,179 34,951 31,645 115,727 Quarterly/Monthly7.73 7.73 
0-EBOCOMMIrlandaUS$1,042 3,125 8,333 8,333 79,167 100,000 1,123 3,125 8,208 8,250 78,375 99,081 Quarterly6.42 6.42 
Other guaranteed obligations
0-ECITIBANKU.S.A.US$— — — — — — 22 — — — — 22 Quarterly1.00 1.00 
0-EJP MORGAN CHASEU.S.A.US$— — — — — — 209 — — — — 209 Quarterly0.63 0.63 
0-ECREDIT AGRICOLEFranceUS$— — — 275,012 — 275,012 3,020 — — 272,112 — 275,132 At Expiration6.63 6.63 
0-EEXIM BANKU.S.A.US$5,005 15,147 41,385 37,572 — 99,109 5,284 15,147 41,385 37,572 — 99,388 Quarterly2.29 2.05 
Financial leases
0-ENATIXISFranceUS$6,671 20,241 55,696 78,423 30,352 191,383 8,284 20,242 55,369 78,225 30,350 192,470 Quarterly6.73 6.73 
0-EUS BANKU.S.A.US$10,972 6,520 — — — 17,492 11,147 6,217 — — — 17,364 Quarterly4.88 3.40 
0-EEXIM BANKU.S.A.US$32,988 74,220 167,003 103,326 35,535 413,072 34,733 74,221 166,291 103,326 35,532 414,103 Quarterly4.00 3.17 
0-EBANK OF UTAHU.S.A.US$2,857 7,991 29,220 46,016 75,786 161,870 2,857 7,991 29,220 46,016 75,786 161,870 Monthly10.71 10.71 
Total66,721 149,099 362,704 1,313,726 1,888,259 3,780,509 74,659 195,054 360,914 1,288,246 1,855,031 3,773,904 
        
    






68
Interest-bearing loans due in installments to December 31, 2024
Debtor: TAM S.A. and Subsidiaries, Tax No. 02.012.862/0001-60, Brazil
Tax No.Creditor
Country		CurrencyNominal valuesAccounting valuesAmortizationAnnual
Up to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More
than
five
years		Total
nominal
value		Up to
90
days		More than
90 days
to one
year		More than
one to
three
years		More than
three to
five
years		More
than
five
years		Total
accounting
value		Effective
rate		Nominal
rate
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$%%
Financial lease
0-ENATIXISFranceUS$510 1,530 4,080 7,846 — 13,966 510 1,530 4,080 7,846 — 13,966 Quarterly— — 
Total510 1,530 4,080 7,846 — 13,966 510 1,530 4,080 7,846 — 13,966 
Total consolidated67,231 150,629 366,784 1,321,572 1,888,259 3,794,475 75,169 196,584 364,994 1,296,092 1,855,031 3,787,870 
                



69
(b) Lease Liability:

The movement of the lease liabilities corresponding to the year reported are as follow:

Aircraft Others Lease
Liability
Total
ThUS$ ThUS$ ThUS$
Opening balance as January 1, 20242,894,198 73,796 2,967,994 
New contracts576,182 69,061 645,243 
Lease termination(72,266)(540)(72,806)
Renegotiations96,155 70,670 166,825 
Payments(605,584)(26,630)(632,214)
Accrued interest288,165 25,391 313,556 
Exchange differences(2,090)(3,082)(5,172)
Cumulative translation adjustment— (9,679)(9,679)
Other increases (decreases)— (11,166)(11,166)
Changes280,562 114,025 394,587 
Closing balance as of December 31, 2024 3,174,760 187,821 3,362,581 
Opening balance as of January 1, 20253,174,760 187,821 3,362,581 
New contracts815,796 22,012 837,808 
Lease termination(210,868)(8)(210,876)
Renegotiations227,117 18,418 245,535 
Payments(731,902)(42,618)(774,520)
Accrued interest292,381 19,750 312,131 
Exchange differences6,747 8,544 15,291 
Cumulative translation adjustment— 4,911 4,911 
Changes399,271 31,009 430,280 
Closing balance as of December 31, 2025 3,574,031 218,830 3,792,861 


The Company recognizes interest payments related to lease liabilities in the consolidated result under Finance costs (See Note 26(c)). The weighted average discount rates for calculation of lease liability are as follows.


 Discount rate
December 2025		Discount rate
December 2024
Aircraft8.74%9.09%
Others8.87%8.78%













70

NOTE 19 - TRADE AND OTHER ACCOUNTS PAYABLES

The composition of Trade and other accounts payables is as follows:

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Current
 (a) Trade and other accounts payables
2,076,314 1,761,814 
 (b) Accrued liabilities
608,532 371,758 
Total trade and other accounts payables2,684,846 2,133,572 


(a)     Trade and other accounts payable:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Trade creditors1,676,218 1,409,894 
Other accounts payable400,096 351,920 
Total2,076,314 1,761,814 

The details of Trade and other accounts payables are as follows:

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Maintenance and technical purchases448,927 380,853 
Boarding Fees318,024 268,353 
Aircraft Fuel261,700 220,343 
Handling and ground handling214,411 122,721 
Airport charges and overflight117,364 157,691 
Leases, maintenance and IT services114,043 121,901 
Other personnel expenses99,187 106,277 
Professional services and advisory89,082 77,548 
Services on board80,086 72,902 
Marketing57,903 46,751 
Crew40,765 20,560 
Air companies32,817 9,778 
Agencies sales commissions29,478 15,649 
Aircraft Insurance9,553 16,756 
Others162,974 123,731 
Total trade and other accounts payables2,076,314 1,761,814 

(1) See note 24, letter g


71

(b)     Liabilities accrued:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Aircraft and engine maintenance191,524 74,874 
Accrued personnel expenses104,504 86,743 
Accounts payable to personnel (1)275,358 183,153 
Others accrued liabilities37,146 26,988 
Total accrued liabilities608,532 371,758 

(1) Participation in profits and bonuses (Note 22 letter b).


NOTE 20 - OTHER PROVISIONS

Current liabilitiesNon-current liabilitiesTotal Liabilities
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Provision for contingencies (1)
Tax contingencies1,722 11,536 330,955 313,165 332,677 324,701 
Civil contingencies5,052 1,173 169,732 124,411 174,784 125,584 
Labor contingencies1,639 1,512 160,105 174,035 161,744 175,547 
Other— — 11,181 9,908 11,181 9,908 
Provision for European
Commission investigation (2)— — 2,638 2,327 2,638 2,327 
Total other provisions (3)8,413 14,221 674,611 623,846 683,024 638,067 

(1)Provisions for contingencies:

    The tax contingencies correspond to litigation and tax criteria related to the tax treatment applicable to direct and indirect taxes, which are found in both administrative and judicial stage.
    The civil contingencies correspond to different demands of civil order filed against the Company.The labor contingencies correspond to different demands of labor order filed against the Company.
    Provisions are recognized in the consolidated income statement in administrative expenses or tax expenses, as appropriate.
The Company maintains other judicial processes, individually and cumulatively, do not have a significant impact on these financial statements.

(2)    Provision made for proceedings brought by the European Commission for possible breaches of free competition in the freight market.
(3)    Total other provision as of December 31, 2025, and December 31, 2024, include the fair value of the contingencies arising at the time of the business combination with TAM S.A and subsidiaries,with a probability of loss under 50%, which are not recognized in the normal course of IFRS Accounting Standards application and which only in the context of a business combination should be recognized under IFRS Accounting Standards.


72
Movement of provisions:
Legal
claims (1)		European
Commission
Investigation (1) 		Total
ThUS$ ThUS$ ThUS$
Opening balance as January 1, 2024939,331 2,477 941,808 
Increase in provisions448,338 — 448,338 
Provision used(92,729)— (92,729)
Difference by subsidiaries conversion(143,057)— (143,057)
Reversal of provision(508,907)— (508,907)
Exchange difference(7,236)(150)(7,386)
Closing balance as of December 31, 2024 635,740 2,327 638,067 
Opening balance as of January 1, 2025635,740 2,327 638,067 
Increase in provisions269,985 5 269,990 
Provision used(94,853)— (94,853)
Difference by subsidiaries conversion12,346 — 12,346 
Reversal of provision(144,773)— (144,773)
Exchange difference1,941 306 2,247 
Closing balance as of December 31, 2025 680,386 2,638 683,024 

(1)See details of litigation and government investigations with a material impact in Note 30.    




NOTE 21 - OTHER NON-FINANCIAL LIABILITIES

Current liabilitiesNon-current liabilitiesTotal Liabilities
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Deferred revenue (1)(2)3,580,317 3,118,099 — 140,244 3,580,317 3,258,343 
Sales tax32,162 14,566 — — 32,162 14,566 
Retentions150,794 48,383 — — 150,794 48,383 
Other taxes7,215 6,332 — — 7,215 6,332 
Dividends payable 37,995 293,092 — — 37,995 293,092 
Other sundry liabilities7,692 8,208 — — 7,692 8,208 
Total other non-financial liabilities3,816,175 3,488,680 — 140,244 3,816,175 3,628,924 













73
Deferred Revenue Movement

Deferred revenue
Initial balance(1)
Recognition		Use Loyalty
program (Award and
 redeem) 		Expiration of
tickets 		Translation
Difference 		Others
provisions		Final
balance
ThUS$ThUS$ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
From January 1 to December 31, 2024 3,393,600 15,679,754 (15,073,167)(126,564)(347,873)(260,364)(7,043)3,258,343 
From January 1 to December 31, 2025 3,258,343 17,264,291 (16,738,516)21,311 (354,001)124,933 3,956 3,580,317 

(1)The balance includes mainly, deferred revenue for services not provided as of December 31, 2025 and December 31, 2024 and for the frequent flyer LATAM Pass program.

LATAM Pass is LATAM's frequent flyer program that allows rewarding the preference and loyalty of its customers with multiple benefits and privileges, through the accumulation of miles that can be exchanged for tickets or for a varied range of products and services. Clients accumulate miles LATAM Pass every time they fly in LATAM and other airlines associated with the program, as well as by buying in stores or use the services of a vast network of companies that have agreements with the program around the world.

(2)As of December 31, 2025, Deferred Income includes Th US$28.452 (ThUS$35.615 as of December 31, 2024) related to the compensation from Delta Air Lines, Inc., which is recognized in the income statement based on the estimation of income differentials until until the end of the implementation of the strategic alliance.


NOTE 22 - EMPLOYEE BENEFITS

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Retirements payments95,768 71,296 
Resignation payments6,424 7,048 
Other obligations79,387 89,083 
Total liability for employee benefits181,579 167,427 



(a)    The movement in retirements, resignations and other obligations:

Opening
balance		Increase (decrease)
current service
provision 		Benefits
paid 		Actuarial
(gains)
losses 		Currency
translation 		Closing
balance
ThUS$ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
From January 1 to December 31, 2024122,618 88,112 (10,778)(21,769)(10,756)167,427 
From January 1 to December 31, 2025 167,427 17,457 (11,465)17,216 (9,056)181,579 






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The main assumptions used in the calculation of the provision in Chile are presented below:

For the year ended December 31,
Assumptions20252024
Discount rate5.41 %5.92 %
Expected rate of salary increase3.00 %3.00 %
Rate of turnover2.80 %2.96 %
Mortality rateRV-2020RV-2020
Inflation rate3.00 %3.42 %
Retirement age of women6060
Retirement age of men6565

The discount rate is based on the bonds issued by the Central Bank of Chile with a maturity of 20 years. The RV-2020 mortality tables correspond to those established by the Commission for the Financial Market of Chile. The inflation rates are based on the yield curves of the long term nominal and inflation adjusted bonds based on BCU and BCPs issued by the Central Bank of Chile.

The calculation of the present value of the defined benefit obligation is sensitive to the variation of some actuarial assumptions such as discount rate, salary increase, rotation and inflation.




The sensitivity analysis for these variables is presented below:    
Effect on the liability
As of
December 31, 2025		As of
December 31, 2024
ThUS$ ThUS$
Discount rate
Change in the accrued liability an closing for increase in 100 b.p.(7,199)(5,267)
Change in the accrued liability an closing for decrease of 100 b.p.8,318 6,010 
Rate of wage growth
Change in the accrued liability an closing for increase in 100 b.p.7,543 5,570 
Change in the accrued liability an closing for decrease of 100 b.p.(6,819)(5,056)

(b)    Annual bonus provision :
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Profit-sharing and bonuses (*) 275,358 183,153 
(*)        Accounts payables to employees (Note 19 letter b)


The participation in profits and bonuses related to an annual incentive plan for achievement of certain objectives.



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(c)    CIP (Corporate Incentive Plan)

With the aim of incentivizing the retention of talent among the employees of LATAM Group companies and in response to the exit of the Chapter 11 Procedure, it was agreed to grant an extraordinary and exceptional incentive called Corporate Incentive Plan (hereinafter also "CIP"), which will be enforceable and paid subject to compliance with the terms, clauses and conditions approved at the Board meeting dated April 25, 2023. In summary, the CIP contemplates three categories oriented to three different groups or categories of employees, whether they are hired by the Company directly, or in other companies of the LATAM Group. These categories are as follows: Non-Executive Employees; Executives Not part of the Global Executive Meeting o “GEM”; and GEM Executives. Employees in each of these groups are only eligible for the CIP that corresponds to their respective category. The terms of each of these CIP categories were communicated to the respective employees between the months of January to December 2023.

Below are more background on each of the different categories of the CIP. Additionally, in Note 33 describes in more detail the main terms and conditions of the last two categories of the CIP (i.e., Non-GEM Executives; and GEM Executives):

i)    Non-Executive Employees: The first subprogram was aimed at non-executive employees who, while hired at one of the LATAM Group companies as of December 31, 2020, were still in their position as of April 30, 2023, which includes a fixed and guaranteed payment in cash on certain dates, depending on the country where the employee is hired.

This subprogram is available to those employees who were unable to qualify for one of the two     categories below, or who were able to do so, chose not to participate in them.

ii)    Executives Not part of the GEM: The second subprogram applies to senior executives not part of the GEM (Global Executive Meeting – Senior Managers, Managers, Assistant Managers). This program contemplates the creation of remuneration synthetic Units (hereinafter, simply "Units") that, by reference, are considered as equivalent to the price of one share of LATAM Airlines Group S.A., and consequently, in case they become effective, they grant the worker the right to receive the payment in cash that results from multiplying the number of Units that become effective by the value per share of LATAM Airlines Group S.A. that should be considered in accordance with CIP.

In this context, this program contemplates two different bonuses: (1) a withholding bonus, consisting of the amount in cash resulting from Units that are assigned to the respective employee, these Units being paid at 20% at month 15 and 80% at month 24, in each case, counted from the exit date of Chapter 11 Procedure (i.e., November 3, 2022) (the "Exit Date"). This is consequently a guaranteed payment for these employees; and (2) a bonus associated with the certain financial indicators of LATAM Airlines Group S.A. and its subsidiaries, which is reflected in Note 19 (b), becoming effective 20% at month 15 and 80% at month 24, in each case, from the Exit Date. Consequently, this is an eventual payment that is only made if these indicators are reached.

iii)     GEM Executives: The third subprogram applies to the Company´s GEM executives (Global Executive Meeting) (CEO and employees whose job description is "vice presidents" or "directors"). This program, in essence, contemplates the creation of remuneration synthetic Units that, by referential means, are considered as equivalent to the price of one share of LATAM Airlines Group S.A. and consequently, in case they become effective, they grant the worker the right to receive the payment in cash that results from multiplying the number of Units that become effective by the value per share of LATAM Airlines Group S.A. that must be considered according to the CIP.


These Units are divided into:

(1) Units associated with the employee's permanence in one of the LATAM Group companies ("RSUs" – Retention Shares Units); and (2) Units associated with both the employee's permanence in one of the LATAM Group companies and the performance of LATAM Airlines Group S.A. ("PSUs" – Performance Shares Units). This performance is ultimately measured according to the share price of LATAM Airlines Group S.A. in the terms and conditions of the CIP.


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Both the RSUs and the PSUs are consequently associated with the passage of time, becoming effective by partialities according to the calendar contemplated by the CIP. For the case of RSUs, having a vesting guaranteed by partialities as explained in more detail in Note 33. On the other hand, the PSUs also consider the market value of the share of LATAM Airlines Group S.A. considering a liquid market. However, as long as there is no such liquid market, the share price will be determined on the basis of representative transactions. As explained in more detail in Note 33, PSUs constitute a contingent and non-guaranteed payment.

In addition, some GEM Executives will also be entitled to receive a fixed and guaranteed cash payment ("MPP" – Management Protection Plan) on certain dates according to the CIP. Those employees who are eligible for this MPP will also be eligible for a limited number of additional MSUs ("MPP Based RSUs").

During the first quarter of 2025, GEM executives contracts were amended incorporating an alternative modality for a portion of the PSUs assigned to the employee to become effective. More specifically, up to 50% of the PSUs assigned to the respective employee will be eligible to become effective to the extent that, on or before the 60th month from the date of exit from the Chapter 11 Procedure, the Return per Share, expressed as a percentage of the price per share at which the shares issued by virtue of the capital increase agreed upon at the Extraordinary Shareholders' Meeting of LATAM Airlines Group S.A. on July 5, 2022 (i.e., US$0.01083865799), exceeds certain thresholds. For these purposes, the concept of "Return per Share" considers the average price of stock market transactions in shares of LATAM Airlines Group S.A. within 60 business days prior to the determination date, plus any dividends and distributions that have been paid to shareholders with respect to their shares in LATAM Airlines Group S.A. after the exit from the Chapter 11 Procedure.


In all cases, the respective employees must have remained as such in one of the LATAM Group companies at the corresponding accrual date to qualify for these benefits.

For the year ended December 31, 2025, the amount accrued related to this CIP was US$18.21 million (US$78.79 million at December 31, 2024), which is recorded in the “Administrative expenses” line of the Consolidated Statement of Income by Function. As of December 2025, the amount of this plan recorded in the consolidated statement of financial position is US$120.85 million (US$152.6 million at December 31,2024).

(d)    Employment expenses are detailed below:
For the year ended December 31,
20252024
ThUS$ ThUS$
Salaries and wages1,504,554 1,337,982 
Short-term employee benefits229,457 243,210 
Other personnel expenses207,110 157,282 
Total1,941,121 1,738,474 















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NOTE 23 - ACCOUNTS PAYABLE, NON-CURRENT

As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Aircraft and engine maintenance408,700 433,447 
Fleet (JOL)40,000 40,000 
Provision for vacations and bonuses22,016 18,129 
Other sundry liabilities492 186 
Total accounts payable, non-current471,208 491,762 


NOTE 24 - EQUITY

(a)    Capital

The Company’s objective is to maintain an appropriate level of capitalization that enables it to ensure access to the financial markets for carrying out its medium and long-term objectives, optimizing the return for its shareholders and maintaining a solid financial position.

The paid capital of the Company at December 31, 2025, amounts to ThUS$4,418,110 divided into 574,215,983,709 common stock of a same series (ThUS$5,003,534 divided into 604,437,877,587 shares as of December 31, 2024), a single series nominative, ordinary character with no par value. The total number of authorized shares of the Company as of December 31, 2025, corresponds to 574,219,895,457 shares. From the above it follows that 3,911,748 shares are pending subscription and payment, and said shares are intended exclusively to respond to the conversion of 42,398 Series H Convertible Bonds issued on the occasion of the exit from the reorganization procedure under Chapter 11. There are no special series of shares and no privileges. The form of its stock certificates and their issuance, exchange, disablement, loss, replacement and other similar circumstances, as well as the transfer of the shares, is governed by the provisions of the Corporate Law and its regulations.

As of September 2, 2025, the Company’s Board of Directors convened an Extraordinary Shareholders’ Meeting for October 17, 2025, for the purpose of submitting to a shareholders’ vote the early cancellation of 30,221,893,878 treasury shares acquired by the Company under the share repurchase programs approved at the Extraordinary Shareholders’ Meetings held on March 17, 2025 and June 26, 2025, as well as approving the corresponding decrease in the Company’s share capital. At said Shareholders’ Meeting, the early cancellation of the aforementioned 30,221,893,878 treasury shares—representing subscribed and paid-in capital of US$585,424,212—was approved, thereby reducing the Company’s share capital by such amount. Accordingly, the share capital was reduced from US$5,003,576,326.78, divided into 604,441,789,335 shares of a single series without par value, to US$4,418,152,114.78, divided into 574,219,895,457 shares of a single series without par value. Of this amount, US$4,418,109,716.78, represented by 574,215,983,709 shares, is fully subscribed and paid; and the remaining balance of US$42,398, represented by 3,911,748 shares, is reserved exclusively to satisfy the conversion of 42,398 Series H Convertible Bonds issued in connection with the emergence from the Chapter 11 reorganization process.











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(b)     Movement of authorized shares

The following table shows, as of December 31, 2025 and as of December 31, 2024, the movement of the authorized shares, fully paid shares and back-up shares to be delivered in the event that the respective conversion option is exercised under the convertible notes currently issued by the Company:

As of December 31, 2025 As of December 31, 2024
N° of authorized sharesN° of Subscribed of shares and paid or delivered pursuant to the exercise of the conversion option (*)N° of convertible notes back-up shares pending to placeN° of shares to subscribe or not usedN° of authorized sharesN° of Subscribed of shares and paid or delivered pursuant to the exercise of the conversion optionN° of convertible notes back-up shares pending to placeN° of shares to subscribe or not used
Opening Balance604,441,789,335604,437,877,5873,911,748—604,441,789,335604,437,877,5873,911,748—
Early cancellation of treasury shares(30,221,893,878)(30,221,893,878)——————
Subtotal(30,221,893,878)(30,221,893,878)——————
Closing Balance574,219,895,457574,215,983,7093,911,748—604,441,789,335604,437,877,5873,911,748—

(*) see note 24 letter d)



(c)     Share capital

The following table shows the movement of share capital:

Paid- in
Capital
ThUS$
Initial balance as of January 1, 20245,003,534 
There were no movements during the year 2024— 
Ending balance as of December 31, 20245,003,534 
Initial balance as of January 1, 20255,003,534 
Early cancellation of treasury shares(585,424)
Ending balance as of December 31, 2025 4,418,110 


(d)     Treasury stock
As of December 31, 2025, of the total subscribed and paid-in shares, the Company had acquired 30,221,893,878 shares under its own share repurchase programs, for a total amount of MUS$585,424. These shares were early cancelled in accordance with the approval granted by the Extraordinary Shareholders’ Meeting held on October 17, 2025.












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The movement of treasury shares is as follows:


Movement of treasury sharesNumber of sharesShare amountFee paymentsTotal
ThUS$ThUS$ThUS$
Opening balance at January 1, 2024— — — 
Movements during the year— — — 
Closing balance at December 31, 2024— — — 
Opening balance at January 1, 2025— — — — 
Own share repurchase program approved at the Extraordinary Shareholders’ Meeting held on March 17, 2025, paid in May 20259,671,006,041 151,997 154 152,151 
Own share repurchase program approved at the Extraordinary Shareholders’ Meeting held on June 26, 2025, paid in July 202520,550,887,837 432,840 433 433,273 
Early cancellation of own shares approved at the Extraordinary Shareholders’ Meeting held on October 17, 2025(30,221,893,878)(584,837)(587)(585,424)
Ending balance as of December 31, 2025— — — — 


(e)     Other equity- Value of conversion right - Convertible Notes

(e.1)     Notes subscription
The Convertible Notes were issued to be place in exchange for a cash contribution, in exchange for settlement of Chapter 11 Proceeding or a combination of both. Convertible Notes issued in exchange for cash were valued at fair value (the cash received). Notes issued in exchange for settlement of Chapter 11 claims were valued considering the discount that each group of liabilities settled on at the emergence date. The table below shows the 3 Convertible Notes at their nominal values, the adjustment, if any, to arrive at their fair values and the amount of transaction costs. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. The equity portion is recognized under Other equity at the time the Convertible Notes are issued.
During the year ended December 31, 2025, and for the year ended December 31, 2024, there was no subscription of convertible bonds.


(e.2)     Conversion of notes into shares

Until as of December 31, 2023, the following notes have been converted into shares:

ConceptsConvertible
Notes G 		Convertible
Notes H 		Convertible
Notes I 		Total
Convertible
Notes
ThUS$ ThUS$ ThUS$ ThUS$
Conversion percentage100.000%99.997%100.000%
Conversion option of convertible notes exercised1,133,397 1,372,798 6,863,427 9,369,622 
Total Converted Notes1,133,397 1,372,798 6,863,427 9,369,622 

As of December 31, 2025, and as of December 31, 2024, no bonds have been converted into shares.

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The conversion option from the issuance of convertible notes classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument (i.e. convertible notes) as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital. As of December 31, 2025, the portion not converted into equity corresponds to ThUS$39.

(e.3)     The Convertible Notes
The contractual conditions of the G, H and I Convertible Notes consider the delivery of a fixed number of shares of LATAM Airlines Group S.A. at the time of settlement of the conversion option of each of them. The foregoing determined the classification of convertible notes as equity instruments, with the exception of Bond H, which considers, in addition to the delivery of a fixed number of shares, the payment of 1% annual interest with certain conditions for its payment and its accrual from 60 days after the exit Date. The payment of this interest gives rise to the recognition of a liability component for the class H convertible notes.
At the date of issue, the fair value of the liability component in the amount of ThUS$102,031 was estimated using the prevailing market interest rate for similar non-convertible instruments.
Transaction costs relating to the liability component are included in the carrying amount of the liability portion and amortized over the period of the convertible notes using the effective interest method.

(f)     Reserve of share- based payments

Movement of Reserves of share- based payments:
PeriodsOpening
balance		Stock
option
plan		Closing
balance
ThUS$ThUS$ThUS$
From January 1 to December 31, 2024 37,235 — 37,235 
From January 1 to December 31, 2025 37,235 — 37,235 
These reserves are related to share based payment plans that expired during the first quarter of 2023. No equity instruments were issued and no amounts were paid associated with these plans.



(g)     Other sundry reserves
Movement of Other sundry reserves:

PeriodsOpening
balance		Transactions with
non-controlling interest 		Other sundry
reserves 		Others increases (Decreases)Closing
balance
ThUS$ThUS$ ThUS$ ThUS$ThUS$
From January 1 to December 31, 2024 (1,170,016)— — 510 (1,169,506)
From January 1 to December 31, 2025 (1,169,506)— — (19,505)(1,189,011)










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Balance of Other sundry reserves comprise the following:
As of
December 31, 2025		As of
December 31, 2024
ThUS$ ThUS$
Higher value for TAM S.A. share exchange (1)2,666,202 2,666,202 
Reserve for the adjustment to the value of fixed assets (2)2,620 2,620 
Transactions with non-controlling interest (3)(211,582)(211,582)
Adjustment to the fair value of the New Convertible Notes (4)(3,624,871)(3,624,871)
Share buyback program OFB june 2025(5ii)(15,603)— 
Share buyback program OFB march 2025(5i)(3,902)— 
Others(1,875)(1,875)
Total(1,189,011)(1,169,506)



(1)    Corresponds to the difference between the value of the shares of TAM S.A., acquired by Sister Holdco S.A. (under the Subscriptions) and by Holdco II S.A. (by virtue of the Exchange Offer), which is recorded in the declaration of completion of the merger by absorption, and the fair value of the shares exchanged by LATAM Airlines Group S.A. as of June 22, 2012.

(2)     Corresponds to the technical revaluation of the fixed assets authorized by the Commission for the Financial Market in the year 1979, in Circular No. 1529. The revaluation was optional and could be made only once; the originated reserve is not distributable and can only be capitalized.
(3)     The balance corresponds to the loss generated by: Lan Pax Group S.A. e Inversiones Lan S.A. in the acquisition of shares of Aerovías de Integración Regional S.A. for (ThUS$3,480) and (ThUS$20), respectively; the acquisition of TAM S.A. of the minority interest in Aerolinhas Brasileiras S.A. for (ThUS$885), the acquisition of Inversiones Lan S.A. of the minority participation in Aerovías de Integración Regional S.A. for an amount of (ThUS$2) and the acquisition of a minority stake in Aerolane S.A. by Lan Pax Group S.A. for an amount of ThUS$(21,526) through Holdco Ecuador S.A. The loss due to the acquisition of the minority interest of Multiplus S.A. for (ThUS$184,135), and the acquisition of a minority interest in LATAM Airlines Perú S.A. through LATAM Airlines Group S.A for an amount of (ThUS$3,225) and acquisition of the minority stake in LAN Argentina S.A. and Inversora Cordillera through Transportes Aéreos del Mercosur S.A. for an amount of (ThUS$3,383). The movements during 2023 was the following: acquisition of the non-controlling interest of Aerovías de Integración Regional S.A. for an amount of (ThUS$23) and amendment of articles in the legal statutes of association related to premiums for the issuance of shares in the subsidiaries Aerovías de Integración Regional S.A. for a total amount of ThUS$5.097.

(4)     The adjustment to the fair value of the Convertible Notes delivered in exchange for settlement of Chapter 11 claims was valued considering the discount that each group of liabilities settled on at the emergence date. These relate to: gain on the haircut for the accounts payable and other accounts payable for ThUS$2,564,707, gain on the haircut for the financial liabilities for ThUS$420,436,and gain on the haircut of lease liabilities which is booked against the right of use asset for ThUS$639,728 as of December 31, 2025 and December 31, 2024.

(5)    Share Repurchase Programs

5i) Firm Block Offer (FBO) March 2025

    At the Extraordinary Shareholders' Meeting held on March 17, 2025 (the "Meeting"), it was approved a program for the acquisition of shares issued by the Company was approved, in accordance with Articles 27 A to 27 C and other relevant articles of the Corporations Act (the “Share Repurchase Program”, “Buyback” or the “First Program”) for a duration of 18 months from the date of the Meeting for up to 1.6% of the outstanding shares, which corresponds to 9,671,006,041 shares as of this date. According to the terms in which it was approved, the objective of the First Program is distributing proceeds to shareholders and investing in shares issued by the Company. At the Meeting, the Board of Directors has been delegated the authority to set the

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minimum and maximum purchase price for shares under the First Program, remaining fully empowered to modify this determination as often as it deems necessary, in its sole discretion. The Meeting also approved to authorize the Board of Directors, in accordance with Article 27 B of the Corporations Law, to carry out the acquisition of shares subject to the First Program on stock exchanges through systems that allow for pro rata acquisition of the shares. If the established percentage is not reached, the remaining balance may be purchased directly in “rueda”. Additionally, the Board of Directors has been delegated the authority to always acquire shares directly in the market for an amount representing up to 1% of the Company's share capital within any 12-month period, without the need to apply the pro rata procedure, under the terms provided for in the aforementioned Article 27 B.


In a Board of Directors meeting held on March 2    8, 2025, the Company's Board of Directors approved the launch of the First Program approved at the aforementioned Meeting, in accordance with the delegation granted to the Board of Directors at that Meeting and the applicable regulations. Specifically, on this date, the Board of Directors agreed to:

a) Initiate the First Program through the pro rata mechanism of an FBO (“Oferta Firme en Bloque” or “FBO”, for its Spanish acronym) on the Santiago Stock Exchange (the “Exchange”) for up to 1.6% of the outstanding shares into which the Company’s share capital is divided (i.e., up to 9,671,006,041 shares), at a price per share of CLP$15.02 (fifteen point zero two pesos, legal currency in Chile), equivalent to March 28, 2025 to US$0.016120204 (zero point zero one six one two zero two zero four U.S. dollars), according to the "observed" exchange rate as of this date, for a period of 30 days.

b) Determine that the OFB be registered in the Exchange's systems on March 28, 2025, with effective as of April 1, 2025. The OFB had an initial period of 30 days, from April 1, 2025, to April 30, 2025.

c) Engage J.P. Morgan Corredores de Bolsa SpA and Banchile Corredores de Bolsa S.A. to implement the OFB.

Additionally, in the same meeting, it is agreed that ADR holders who desire to sell shares under the First Program must first cancel their respective ADRs and convert them into shares of the Company under the terms outlined in our deposit agreement with JPMorgan Chase Bank, N.A. To do so, they must contact the depositary.

As of March 31, 2025, following approval by the Company's Board of Directors to initiate the program to acquire its own-issued shares through pro rata mechanism the "Oferta Firme en bloque" (OFB) indicated in the preceding paragraphs, the Company recognized the payment obligation of ThUS$155,899.

On April 30, 2025 the OFB was declared fully successful, receiving acceptances that far exceeded the shares offered for purchase under the First Program. As a result, the Company was required to apply a pro-rata allocation to the shareholders who accepted the OFB. Consequently, the OFB was definitively settled on May 2, 2025, and the shareholders who accepted the OFB were unable to sell, under the First Program, all the shares they intended to. As a result of the execution of the First Program, the Company ultimately acquired all 9,961,006,041 shares covered by the Program.

On May 2, 2025, the settlement of the purchase of 1.6% of the subscribed and paid shares (9,671,006,041 shares) was carried out for a total amount of US$151,997 thousand (see Note 24 (d)). As of that date, an amount of ThUS$3,902 was recognized in other reserves. This amount arises from the exchange rate difference between, on the one hand, the date of recognition of the payment obligation as of March 31, 2025, as previously indicated, and on the other hand, the settlement date of the OFB on May 2, 2025. This difference arises because the share price was set and paid in Chilean pesos.

5ii) Firm Block Offer (OFB) June 2025

At the Extraordinary Shareholders' Meeting held on June 26, 2025 (the "Meeting"), it was approved a new program for the acquisition of shares issued by the Company was approved, in accordance with Articles 27 A to 27 C and other relevant articles of the Corporations Act (the “Share Repurchase Program”, “Buyback” or the “New Program”) for a duration of 18 months from the date of the Meeting for up to 3.4% of the outstanding shares, which corresponds to 20,550,887,837 shares as of this date. According to the terms in which it was approved, the objective is distributing proceeds to shareholders and investing in shares issued by the Company. At the Meeting, the Board of Directors has been delegated the authority to set the minimum and maximum purchase price for shares under the New Program, remaining fully empowered to modify this determination as often as it deems necessary, in its sole discretion. The Meeting also approved to authorize the Board of Directors, in accordance with Article 27 B of the Corporations Law, to carry out the acquisition of shares subject to the New Program on stock exchanges through systems that allow for pro rata acquisition of the

83
shares. If the established percentage is not reached, the remaining balance may be purchased directly in “rueda”. Additionally, the Board of Directors has been delegated the authority to always acquire shares directly in the market for an amount representing up to 1% of the Company's share capital within any 12-month period, without the need to apply the pro rata procedure, under the terms provided for in the aforementioned Article 27 B.

In a Board of Directors meeting held on June 27, 2025, the Company's Board approved the launch of the New Program approved at the aforementioned Meeting, in accordance with the delegation granted to the Board of Directors at that Meeting and the applicable regulations. Specifically, on this date, the Board of Directors agreed to:

a) Initiate the New Program through the pro rata mechanism of an OFB (“Oferta Firme en Bloque” or “OFB”, for its Spanish acronym) on the Santiago Stock Exchange (the “Exchange”) for up to 2.4% of the outstanding shares into which the Company’s share capital is divided (i.e., up to 14,506,509,062 shares), at a price per share of CLP$19.00 (nineteen point zero pesos, legal currency in Chile), equivalent to June 27, 2025 to US$0.020415400 (zero point zero two zero four one five four zero zero U.S. dollars), according to the "observed" exchange rate as of this date, for a period of 30 days. The terms and conditions of the OFB may be modified as permitted by current regulations. Any changes will be duly reported through a new Material Fact and will be recorded with the Exchange in accordance with the exchange regulations.

b) Determine that the OFB be registered in the Exchange's systems on June 27, 2025, with effective as of July 1, 2025. The OFB will have an initial period of 30 days, from July 1, 2025, to July 30, 2025.

c) Engage Banchile Corredores de Bolsa S.A. and Larrain Vial S.A. Corredora de Bolsa to implement the OFB.

Additionally, in the same meeting, it is agreed that ADR holders who desire to sell shares under the New Program must first cancel their respective ADRs and convert them into shares of the Company under the terms outlined in our deposit agreement with JPMorgan Chase Bank, N.A. To do so, they must contact the depositary.

As of June 30, 2025, following approval by the Company's Board of Directors to initiate the program to acquire its own-issued shares through pro rata mechanism the "Oferta Firme en bloque" (OFB) indicated in the preceding paragraphs, the Company recognized the payment obligation of ThUS$ US$296,156.

In a Board of Directors meeting held on July 29, 2025, the Company approved increasing the price of the OFB to CLP 20.6 (twenty point six pesos, legal currency in Chile) per share.

In a Board of Directors meeting held on July 30, 2025, the Company approved increasing the maximum percentage of shares to be acquired under the OFB so that up to 3.4% of the subscribed and paid-in shares into which its share capital is divided may be purchased thereunder (i.e., up to 20,550,887,837 shares), the percentage corresponding to the New Program’s maximum limit.

On July 30, 2025, the OFB was declared fully successful, having received acceptances that far exceeded the number of shares offered to be purchased under the New Program, which in turn required the Company to apply a pro rata allocation to the shareholders who accepted the OFB. Accordingly, the OFB was ultimately settled on July 31, 2025, and the shareholders who accepted the OFB were not able to sell under the New Program all the shares they intended to. As a result of the execution of the New Program, the Company ultimately acquired the entirety of the 20,550,887,837 shares targeted thereunder.

On July 31, 2025, the settlement was effected of the purchase of 3.4% of the subscribed and paid-in shares (20,550,887,837 shares) was carried out for a total amount of US$432,840 thousand (see Note 24(d)). As of that date, an amount of ThUS$15,603 was recognized in other reserves.
This amount arises from the exchange rate difference between, on the one hand, the date of recognition of the payment obligation as of June 30, 2025, and on the other hand, the settlement date of the OFB as of July 31, 2025.

This foreign exchange difference was affected by the following events that occurred between those dates: the increase in the OFB price on July 29, 2025, and the modification maximum percentage of shares to be acquired, allowing the purchase of up to 3.4% of the share capital on July 30, 2025. This difference arises because the share price was set and paid in Chilean pesos.





84

(h)     Reserves with effect in other comprehensive income.

Movement of Reserves with effect in other comprehensive income:

Currency
translation
reserve 		Cash flow
hedging
reserve 		Gains (Losses)
on change on value
of time value
of options 		Actuarial gain
or loss on
defined benefit
plans reserve 		Total
ThUS$ ThUS$ ThUS$ ThUS$ ThUS$
Opening balance as of January 1, 2024 (3,830,611)(38,678)32,947 (48,559)(3,884,901)
Change in fair value of hedging instrument recognized in OCI— 15,476 (34,872)— (19,396)
Reclassified from OCI to profit or loss— (40,898)22,685 — (18,213)
Reclassified from OCI to the value of the hedged asset— 11,999 14,580 — 26,579 
Actuarial reserves by employee benefit plans— — — (21,763)(21,763)
Deferred tax actuarial IAS by employee benefit plans— — — 908 908 
Translation difference subsidiaries(379,049)(795)304 — (379,540)
Closing balance as of December 31, 2024(4,209,660)(52,896)35,644 (69,414)(4,296,326)
Opening balance as of January 1, 2025(4,209,660)(52,896)35,644 (69,414)(4,296,326)
Change in fair value of hedging instrument recognized in OCI— 1,416 (37,121)— (35,705)
Reclassified from OCI to profit or loss— (5,854)47,126 — 41,272 
Reclassified from OCI to the value of the hedged asset— (2,204)— — (2,204)
Actuarial reserves by employee benefit plans— — — (17,060)(17,060)
Deferred tax actuarial IAS by employee benefit plans— — — 510 510 
Translation difference subsidiaries218,266 398 (210)— 218,454 
Closing balance as of December 31, 2025 (3,991,394)(59,140)45,439 (85,964)(4,091,059)

(h.1)    Cumulative translate difference

These are originated from exchange differences arising from the translation of any investment in foreign entities (or Chilean investments with a functional currency different to that of the parent company), and from loans and other instruments in foreign currency designated as hedges for such investments. When the investment (all or part) is sold or disposed and a loss of control occurs, these reserves are shown in the consolidated statement of income as part of the loss or gain on the sale or disposal. If the sale does not involve loss of control, these reserves are transferred to non-controlling interests.

(h.2)     Cash flow hedging reserve
These are originated from the fair value valuation at the end of each period of the outstanding derivative contracts that have been defined as cash flow hedges. When these contracts expire, these reserves should be adjusted, and the corresponding results or assets recognized.


(h.3)    Reserves of actuarial gains or losses on defined benefit plans

Correspond to the increase or decrease in the present value obligation for defined benefit plans due to changes in actuarial assumptions, and experience adjustments, which are the effects of differences between the previous actuarial assumptions and the actual events that have occurred.






85
(h.4)    Gains (Losses) on change on value of time value of options

These are originated from changes in the time value of money, which represents the difference between the option’s fair value and its intrinsic value.

(i)     Retained earnings/(losses)    
Movement of Retained earnings/(losses):

PeriodsOpening
balance 		Result
for the
period 		Dividends (*)Others increase (decreases)Closing
balance
ThUS$ ThUS$ ThUS$ThUS$ThUS$
From January 1 to December 31, 2024 464,411 976,972 (293,092)— 1,148,291 
From January 1 to December 31, 2025 1,148,291 1,459,984 (437,995)— 2,170,280 
(*) See Note 24 (j).


(j)      Dividends per share

Description of dividendInterim dividend 2025Minimum mandatory dividend 2025Final dividend 2024
Amount of the dividend (ThUS$)400,000 (*)37,995 (**)293,092 (***)
Number of shares among which the dividend is distributed574,215,983,709 574,215,983,709 604,437,877,587 
Dividend per share (US$)0.000697 0.000066 0.000485 

Payment date		12/23/202504/22/2025
(*) At the Board of Directors’ meeting held on December 3, 2025, the distribution of Interim Dividend No. 54, charged to equity related to the net income for the year 2025, in a total amount of ThUS$400,000, was approved. The dividend was paid on December 23, 2025
(**) The provision recognized corresponds to the amount required to meet the mandatory minimum dividend as of December 31, 2025, equivalent to 30% of the profit for the year 2025. The distribution of the final dividend, charged to the 2025 financial year, is subject to the proposal of the Board of Directors and the approval of the shareholders, in accordance with applicable legal and regulatory provisions..
(***) At the Ordinary Shareholders' Meeting held on March 24, 2025, it was agreed to distribute a final dividend proposed by the Board of Directors in the Ordinary Session of March 14, 2025, amounting to ThUS$293,092, which corresponds to 30% of the net income for the year 2024. The payment was made on April 22, 2025.







86
NOTE 25 - REVENUE

The detail of revenues is as follows:

For the year ended December 31,
20252024
ThUS$ThUS$
Passengers12,611,528 11,233,287 
Cargo1,653,528 1,599,756 
Total14,265,056 12,833,043 


NOTE 26 - COSTS AND EXPENSES BY NATURE

(a)Costs and operating expenses
The main operating costs and administrative expenses are detailed below:
For the year ended December 31,
20252024
ThUS$ThUS$
Aircraft fuel(3,804,821)(3,970,077)
Other rentals and landing fees(1,638,809)(1,470,057)
Aircraft maintenance(862,647)(815,916)
Aircraft rental (*)— (4,164)
Commissions(252,670)(230,127)
Passenger services(382,252)(331,918)
Other operating expenses(1,539,833)(1,448,052)
Total(8,481,032)(8,270,311)

(*) Aircraft Lease Contracts include lease payments based on Power by the Hour (PBH) at the beginning of the contract and fixed-rent payments later on. For these contracts that contain an initial period based on PBH and then a fixed amount, a right of use asset and a lease liability was recognized at the date of modification of the contract. These amounts continue to be amortized over the contract term on a straight-line basis starting from the modification date of the contract. Therefore, as a result of the application of the lease accounting policy, the expenses for the year include both the lease expense for variable payments (Aircraft Rentals) as well as the expenses resulting from the amortization of the right of use assets (included in the Depreciation line included in b) below) and interest from the lease liability (included in Lease Liabilities letter c) below).


Leases of low-value assets included in Costs and expenses by nature
For the year ended December 31,
20252024
ThUS$ ThUS$
Payments for leases of low-value assets(22,165)(18,555)
Total(22,165)(18,555)


87
(b)Depreciation and amortization
Depreciation and amortization are detailed below:
For the year ended December 31,
20252024
ThUS$ ThUS$
Depreciation (*)(1,644,873)(1,375,101)
Amortization(91,225)(72,555)
Total(1,736,098)(1,447,656)

(*) Included within this amount is the depreciation of the Property, plant and equipment (See Note 16 (a)) and the maintenance of the aircraft recognized as right of use assets. The maintenance cost amount included in the depreciation line for the year ended December 31, 2025 is ThUS$772,159 (ThUS$668,936 for the same year in 2024).


(c)Financial costs

The detail of financial costs is as follows:

For the year ended December 31,
20252024
ThUS$ ThUS$
Bank loan interests(261,722)(452,778)
Financial leases(43,039)(49,809)
Lease liabilities(315,309)(318,267)
Other financial expenses(101,346)(61,096)
Total(721,416)(881,950)

Costs and expenses by nature presented in this note plus the Employee expenses disclosed in Note 22, are equivalent to the sum of cost of sales, distribution costs, administrative expenses, other expenses and financing costs presented in the consolidated statement of income by function.


NOTE 27 - OTHER INCOME, BY FUNCTION
Other income, by function is as follows:
For the year ended December 31,
20252024
ThUS$ThUS$
Tours83,187 60,437 
Customs and warehousing48,517 37,710 
Income from non-airlines products LATAM Pass19,351 35,904 
Other miscellaneous income 78,879 66,618 
Total229,934 200,669 




88
NOTE 28 - FOREIGN CURRENCY AND EXCHANGE RATE DIFFERENCES

The functional currency of LATAM Airlines Group S.A. is the US dollar, LATAM has subsidiaries whose functional currency is different to the US dollar, such as the chilean peso, argentine peso, colombian peso, brazilian real and guaraní.

The functional currency is defined as the currency of the primary economic environment in which an entity operates. For each entity and all other currencies are defined as a foreign currency.

Considering the above, the balances by currency mentioned in this note correspond to the sum of foreign currency of each of the entities that are part of the LATAM Airlines Group S.A. and Subsidiaries.

Following are the current exchange rates for the US dollar, on the dates indicated:

As of December 31,As of December 31,As of December 31,
202520242023
Argentine peso1,454.92 1,030.50 807.98 
Brazilian real5.50 6.18 4.85 
Chilean peso907.13 996.46 877.12 
Colombian peso3,772.05 4,403.50 3,872.49 
Euro0.85 0.96 0.90 
Australian dollar1.50 1.61 1.46 
Boliviano6.86 6.86 6.86 
Mexican peso17.95 20.54 16.91 
New Zealand dollar1.72 1.77 1.58 
Peruvian Sol3.36 3.80 3.70 
Paraguayan Guarani6,560.0 7,815.0 7,270.60 
Uruguayan peso38.95 43.80 38.81 




Foreign currency
The foreign currency detail of balances of monetary items in current and non-current assets is as follows:

Current assetsAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Cash and cash equivalents832,594 630,133 
Argentine peso2,692 4,184 
Brazilian real42,258 4,529 
Chilean peso206,013 17,440 
Colombian peso22,937 12,156 
Euro20,350 15,721 
U.S. dollar485,614 532,670 
Other currency52,730 43,433 
Other financial assets, current8,083 7,768 

89
Current assetsAs of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Chilean peso2,026 2,130 
U.S. dollar5,413 5,086 
Other currency644 552 
Other non - financial assets, current88,031 58,675 
Chilean peso68,643 29,968 
Euro2,775 4,105 
U.S. dollar2,356 2,542 
Peruvian sun6,158 7,845 
Other currency8,099 14,215 
Trade and other accounts receivable, current212,571 214,599 
Argentine peso6,885 8,729 
Brazilian real3,012 198 
Chilean peso93,341 64,915 
Colombian peso1,918 1,562 
Euro65,264 96,438 
U.S. dollar7,364 7,503 
Other currency34,787 35,254 
Accounts receivable from related entities, current7 24 
Chilean peso7 24 
Tax current assets29,297 13,121 
Chilean peso2,407 2,035 
Colombian peso11,974 7,020 
Peruvian sun12,966 1,909 
Other currency1,950 2,157 
Total current assets1,170,583 916,475 
Argentine peso9,577 12,913 
Brazilian real45,270 4,727 
Chilean peso372,437 116,512 
Colombian peso36,829 20,738 
Euro88,389 116,264 
U.S. Dollar500,747 547,801 
Other currency117,334 97,520 


90
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
Non-current assets
Other financial assets, non-current13,211 13,627 
Brazilian real3,417 2,989 
Chilean peso775 876 
Euro4,581 4,579 
U.S. dollar1,182 2,315 
Other currency3,256 2,868 
Other non - financial assets, non-current8,791 5,127 
Brazilian real6,771 5,058 
Other currency2,020 69 
Accounts receivable, non-current5,543 4,126 
Chilean peso5,543 4,126 
Deferred tax assets57 5,147 
Colombian peso— 5,112 
Other currency57 35 
Total non-current assets27,602 28,027 
Brazilian real10,188 8,047 
Chilean peso6,318 5,002 
Colombian peso— 5,112 
Euro4,581 4,579 
U.S. dollar1,182 2,315 
Other currency5,333 2,972 





















91
The foreign currency detail of balances of monetary items in current liabilities and non-current is as follows:

Up to 90 days91 days to 1 year
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$
Current liabilities
Other financial liabilities, current10,694 30,413 1,080 872 
Chilean peso4,552 1,621 974 747 
Euro3,712 26,191 14 6 
U.S. dollar2,162 2,131 — — 
Other currency268 470 92 119 
Trade and other accounts payables, current837,459 817,925 9,010 8,639 
Argentine peso3,600 5,203 206 133 
Brazilian real1,429 13,237 649 765 
Chilean peso191,314 175,057 1,806 1,556 
Euro37,834 48,804 4 7 
U.S. dollar546,733 513,970 2,383 1,773 
Peruvian sol51,880 45,244 3,896 4,301 
Mexican peso2,735 1,890 — — 
Pound sterling1,082 4,811 15 18 
Uruguayan peso612 1,253 4 5 
Other currency240 8,456 47 81 
Accounts payable to related entities, current5,482 7,520 — — 
U.S. dollar5,482 7,520 — — 
Other provisions, current6 10 8,427 14,161 
Chilean peso— — 4 4 
Other currency6 10 8,423 14,157 
Current liabilities
Other non-financial liabilities, current99,444 11,031 5,652 5,330 
Argentine peso802 1,286 176 478 
Chilean peso94,046 3,916 2,832 2,688 
Colombian peso1,536 1,122 1,513 1,187 
U.S. dollar1,756 3,185 663 758 
Other currency1,304 1,522 468 219 
Total current liabilities953,085 866,899 24,169 29,002 
Argentine peso4,402 6,489 382 611 
Brazilian real1,429 13,237 649 765 
Chilean peso289,912 180,594 5,616 4,995 
Colombian peso1,536 1,122 1,513 1,187 
Euro41,546 74,995 18 13 
U.S. dollar556,133 526,806 3,046 2,531 
Other currency58,127 63,656 12,945 18,900 


92
More than 1 to 3 yearsMore than 3 to 5 yearsMore than 5 years
As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024		As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$ThUS$ThUS$ThUS$ThUS$
Non-current liabilities
Other financial liabilities, non-current165,530 90,248 5,701 2,791 165,699 167,538 
Chilean peso39,139 33,318 5,654 2,749 164,600 166,495 
Euro115,122 43,861 47 42 1,099 1,043 
U.S. dollar10,122 12,217 — — — — 
Other currency1,147 852 — — — — 
Accounts payable, non-current23,144 22,407 — — — — 
Chilean peso19,744 16,477 — — — — 
U.S. dollar1,266 4,397 — — — — 
Other currency2,134 1,533 — — — — 
Other provisions, non-current59,075 44,993 — — — — 
Argentine peso2,344 2,685 — — — — 
Brazilian real50,948 37,227 — — — — 
Chilean peso2,604 1,996 — — — — 
Colombian peso135 330 — — — — 
Euro3,001 2,653 — — — — 
U.S. dollar43 102 — — — — 
Provisions for employees benefits, non-current111,808 89,950 — — — — 
Chilean peso107,187 82,804 — — — — 
U.S. dollar4,621 7,146 — — — — 
Total non-current liabilities359,557 247,598 5,701 2,791 165,699 167,538 
Argentine peso2,344 2,685 — — — — 
Brazilian real50,948 37,227 — — — — 
Chilean peso168,674 134,595 5,654 2,749 164,600 166,495 
Colombian peso135 330 — — — — 
Euro118,123 46,514 47 42 1,099 1,043 
U.S. dollar16,052 23,862 — — — — 
Other currency3,281 2,385 — — — — 


93
As of
December 31, 2025		As of
December 31, 2024
ThUS$ThUS$
General summary of foreign currency:
Total assets1,198,185 944,502 
Argentine peso9,577 12,913 
Brazilian real55,458 12,774 
Chilean peso378,755 121,514 
Colombian peso36,829 25,850 
Euro92,970 120,843 
U.S. dollar501,929 550,116 
Other currency122,667 100,492 
Total liabilities1,508,211 1,313,828 
Argentine peso7,128 9,785 
Brazilian real53,026 51,229 
Chilean peso634,456 489,428 
Colombian peso3,184 2,639 
Euro160,833 122,607 
U.S. dollar575,231 553,199 
Other currency74,353 84,941 
Net position
Argentine peso2,449 3,128 
Brazilian real2,432 (38,455)
Chilean peso(255,701)(367,914)
Colombian peso33,645 23,211 
Euro(67,863)(1,764)
U.S. dollar(73,302)(3,083)
Other currency48,314 15,551 











94
NOTE 29 – EARNINGS PER SHARE

For the year ended December 31,
20252024
Basic earnings per share
Income attributable to owners of the parent company (ThUS$)1,459,984 976,972 
Weighted average number of shares, basic (*)589,302,090,735604,437,877,587
Basic earnings per share (US$)0.002477 0.001616 
For the year ended December 31,
20252024
Diluted earnings per share
Income attributable to owners of the parent company (ThUS$)1,459,984 976,972 
Weighted average number of shares, diluted (**)589,306,002,483604,441,789,335
Diluted earnings per share (US$)0.002477 0.001616 

(*)    As of December 31, 2025, the number of weighted average basic shares considers 589,302,090,735 shares outstanding from January 1, 2025 to December 31, 2025. As of December 31, 2024, the number of weighted average basic shares considers 604.437.877.587 outstanding shares from January 1, 2024 to December 31, 2024.

(**)    As of December 31, 2025, the number of weighted average diluted shares considers 589,302,090,735 shares outstanding and 3,911,748 shares outstanding from January 1, 2025 until December 31, 2025, assuming the full conversion of the Convertibles Notes that were issued on the date of exit from Chapter 11. As of December 31, 2024, the number of weighted average diluted shares considers 604,437,877,587 shares from January 1, 2024 to December 31, 2024, and 3,911,748 shares outstanding from January 1 to December 31, 2024, assuming the full conversion of the convertible bonds that were issued on the date of exit from Chapter 11.




95
NOTE 30 – CONTINGENCIES
I.    Lawsuits         
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
LATAM Airlines Group S.A. y Lan Cargo S.A.Comisión Europea—Investigation of alleged infringements to free competition of cargo airlines, especially fuel surcharge. On December 26th, 2007, the General Directorate for Competition of the European Commission notified Lan Cargo S.A. and LATAM Airlines Group S.A. the instruction process against twenty five cargo airlines, including Lan Cargo S.A., for alleged breaches of competition in the air cargo market in Europe, especially the alleged fixed fuel surcharge and freight.
On April 14th, 2008, the notification of the European Commission was replied. The appeal was filed on January 24, 2011.
On May 11, 2015, we attended a hearing at which we petitioned for the vacation of the Decision based on discrepancies in the Decision between the operating section, which mentions four infringements (depending on the routes involved) but refers to Lan in only one of those four routes; and the ruling section (which mentions one single conjoint infraction).
On November 9th, 2010, the General Directorate for Competition of the European Commission notified Lan Cargo S.A. and LATAM Airlines Group S.A. the imposition of a fine in the amount of ThUS$9,670 (€8.220.000 Euros).
This fine is being appealed by Lan Cargo S.A. and LATAM Airlines Group S.A. On December 16, 2015, the European Court of Justice revoked the Commission’s decision because of discrepancies. The European Commission did not appeal the decision, but presented a new one on March 17, 2017 reiterating the imposition of the same fine on the eleven original airlines. The fine totals €776,465,000 Euros. It imposed the same fine as before on Lan Cargo and its parent, LATAM Airlines Group S.A., totaling €8.2 million Euros. On May 31, 2017 Lan Cargo S.A. and LATAM Airlines Group S.A. filed a petition with the General Court of the European Union seeking vacation of this decision. We presented our defense in December 2017. On July 12, 2019, we attended a hearing before the European Court of Justice to confirm our petition for vacation of judgment or otherwise, a reduction in the amount of the fine.  On March 30, 2022, the European Court issued its ruling and lowered the amount of our fine from ThUS$9,670 (€8,220,000 Euros) to ThUS$2,638 (€2,244,000 Euros). This ruling was appealed by LAN Cargo S.A. and LATAM on June 9, 2022. The other eleven airlines also appealed the ruling affecting them. The European Commission responded to our appeal of September 7, 2022. Lan Cargo S.A. and LATAM answered the Commission’s arguments on November 11, 2022. Finally, the European Commission replied to our defense in January 2023. On February 13, 2023, LAN Cargo, S.A. and LATAM requested the European Court to hold an oral hearing to ensure the Court's full understanding of some points of the discussion. The European Court held a hearing on April 10, 2024. We are currently awaiting a decision. On September 5, 2024, the Advocate General of the European Court of Justice issued a non-binding opinion affirming that the European Court should dismiss all the appeals of the airlines and maintain the fines imposed. The European Court usually follows the majority of the Advocate General’s recommendations, so it is highly likely that the final decision will confirm the fines, in our case, 2,244,000 euros. The decision is expected to be rendered February 26, 2026.
2,638

96
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
Lan Cargo S.A. y LATAM Airlines Group S.A.In the Ovre Romerike Disrtict Court (Norway) and Directie Juridische Zaken Afdeling Ceveil Recht (Netherlands)—Lawsuits filed against European airlines by users of freight services in private lawsuits as a result of the investigation into alleged breaches of competition of cargo airlines, especially fuel surcharge. Lan Cargo S.A. and LATAM Airlines Group S.A., have been sued in court proceedings directly and/or in third party, based in England, Norway, the Netherlands and Germany, these claims were filed in England, Norway, the Netherlands and Germany, but is only ongoing in Norway.Only the Norway claim is currently pending. The Norway case has been inactive since January 2014 (awaiting a final decision by the European Commission). However, out-of-court negotiations are being held and like in the case of the Netherlands, a preliminary agreement was reached at the end of 2025 with all the airlines involved, who have been forced to accept the withdrawal of their claims against LATAM and LAN CARGO after their previous claim was dismissed by the Court of New York during the Chapter 11 proceedings. Formalization of the withdrawal of their claims is pending in 2026 to close the case in Norway.—
Aerolinhas Brasileiras S.A.Justicia Federal.0008285-53.2015.403.6105
An action seeking to quash a decision and petitioning for early protection in order to obtain a revocation of the penalty imposed by the Brazilian Competition Authority (CADE) in the investigation of cargo airlines alleged fair trade violations, in particular the fuel surcharge.
This action was filed by presenting a guaranty – policy – in order to suspend the effects of the CADE’s decision regarding the payment of the following fines: (i) ABSA: ThUS$10,438; (ii) Norberto Jochmann: ThUS$201; (iii) Hernan Merino: ThUS$ 102; (iv) Felipe Meyer:ThUS$ 102. The action also deals with the affirmative obligation required by the CADE consisting of the duty to publish the condemnation in a widely circulating newspaper.  This obligation had also been stayed by the court of federal justice in this process.  Awaiting CADE’s statement. ABSA began a judicial review in search of an additional reduction in the fine amount.  In December 2018, the Justice Federal ruled negatively against ABSA, indicating that it will not apply a additional reduction to the fine imposed. The Judge’s decision was published on March 12, 2019, and we filed an appeal against it on March 13, 2019. We are awaiting a date for the appeal hearing.10,721

97
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
Aerolinhas Brasileiras S.A.Justicia Federal.0001872-58.2014.4.03.6105A lawsuit filed by ABSA with a motion for preliminary injunction, was filed on February 28, 2014, in order to cancel tax debts of PIS, CONFINS, IPI and II, connected with the administrative process 10831.005704/2006-43.The statement was authenticated on January 29, 2016. A new insurance policy was submitted on March 30, 2016 with the change to the guarantee requested by PGFN. On 05/20/2016 the process was sent to PGFN, which was manifested on 06/03/2016. The Decision denied the company's request in the lawsuit. The court (TRF3) made a decision to eliminate part of the debt and keep the other part (already owed by the Company, but which it has to pay only at the end of the process: ThUS$3.782 – R$20.767.351,66 - probable y MUS$8.507 – R$ 46.707.331,63 - posible). We must await a decision on the Treasury appeal.12,290
Tam Linhas Aéreas S.A.Tribunal Regional Federal da 2a Região.2001.51.01.012530-0 (linked to this process Pas 19515.721154/2014-71, 19515.002963/2009-12)Ordinary judicial action filed by TAM Linhas Aéreas for the purpose of declaring the nonexistence of legal relationship obligating the company to collect the Air Fund.Unfavorable court decision in first instance. Currently expecting the ruling on the appeal filed by the company. In order to suspend chargeability of Tax Credit a Guaranty Deposit to the Court was delivered for R$ 260.223.373,10-original amount in 2012/2013, which currently equals ThUS$104.649 (R$ 574.527.021,43). The court decision requesting that the Expert make all clarifications requested by the parties in a period of 30 days was published on March 29, 2016.  The plaintiffs’ submitted a petition on June 21, 2016 requesting acceptance of the opinion of their consultant and an urgent ruling on the dispute. In January 2024, the Company received an unfavorable ruling and filed an appeal with the court in February 2024. No amount additional to the deposit that has already been made is required if this case is lost. A ruling is currently pending on the company’s appeal.81,948
Tam Linhas Aéreas S.A.Secretaria da Receita Federal do Brasil.10880.725950/2011-05A claim filed by the tax authorities questioning the offsetting of credits from the Social Integration Program (PIS in Portuguese) and Social Security Financing Contribution (COFINS in Portuguese) declared in the Offsetting Declarations (DCOMPs in Portuguese).The objection (manifestação de inconformidade) filed by the company was rejected, which is why the voluntary appeal was filed.  The case was assigned to the 1st Ordinary Group of Brazil’s Administrative Council of Tax Appeals (CARF) on June 8, 2015.  TAM’s appeal was included in the CARF session held August 25, 2016. On 10/07/2016, an agreement was published that generates an additional procedural stage in which the parties can present evidence and clarify certain positions. The company has received the results of this procedural process and submitted a statement. In August 2024, a decision was rendered in the Remedy of Appeal adverse to LATAM Airlines Brazil. In August 2025, the company received notification of the decision on these remedies and filed its defense on August 11, 2025. The company is currently awaiting the Court’s decision.35,628

98
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.10 ª Vara das Execuções Fiscais Federais de São Paulo0061196-68.2016.4.03.6182Tax Enforcement Lien No. 0020869-47.2017.4.03.6182 on Profit-Based Social Contributions from 2004 to 2007.This tax enforcement was referred to the 10th Federal Jurisdiction on February 16, 2017.  A petition reporting our request to submit collateral was recorded on April 18, 2017. In April 2025, a first-instance ruling was issued against LATAM Airlines Brasil. The Company filed an appeal on April 9, 2025.33,655
TAM Linhas Aéreas S.A.Secretaría de Receita Federal5002912.29.2019.4.03.6100A lawsuit filed by TAM disputing the debit in the administrative proceeding 16643.000085/2009-47, reported in previous notes, consisting of a notice demanding recovery of the Income and Social Assessment Tax on the net profit (SCL) resulting from the itemization of royalties and use of the TAM trademark.The lawsuit was assigned on February 28, 2019. A decision was rendered on March 1, 2019 stating that no guarantee was required. On 04/06/2020 TAM Linhas Aéreas S.A. had a favorable decision (sentence). The National Treasury filed an appeal. Today, we await the final decision.9,977
TAM Linhas Aéreas S.A.Delegacía de Receita Federal10611.720852/2016-58An improper charge of the Contribution for the Financing of Social Security (COFINS) on an import.There is no predictable decision date because it depends on the court of the government agency. On June 29, 2023, the company decided to propose a composition to the National Treasurer on payment of the debt, but with the legal deductions stipulated in Law 246/2022. the debt is paid. We are awaiting a response from the authority.15,534
TAM Linhas Aéreas S.A.Delegacía de Receita Federal16692.721.933/2017-80The Internal Revenue Service of Brazil issued a notice of violation because TAM applied for credits offsetting the contributions for the Social Integration Program (PIS) and the Social Security Funding Contribution (COFINS) that do not bear a direct relationship to air transport (Referring to 2012).An administrative defense was presented on May 29, 2018, which was partially in favor of the company. We filed an appeal which triggered an additional procedural stage in which the parties can present evidence and clarify certain positions. We are awaiting the outcome of this procedural step.30,863

99
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.União Federal2001.51.01.020420-0TAM and other airlines filed a recourse claim seeking a finding that there is no legal or tax basis to be released from collecting the Additional Airport Fee (“ATAERO”).In 2001, the Company filed a court claim and in 2009, an initial decision was rendered partially in favor of the Company. In 2016, the Court dismissed the appeal by the plaintiffs. We filed new appeals before the STJ (Superior Court of Justice of Brazil) and STF (Supreme Federal Court of Brazil). Those appeals (special and extraordinary) were denied, so we filed another appeal, called Internal Appeal, on which a decision is pending. The amount is indeterminate because even though TAM is the plaintiff, if the ruling is against it, it could be ordered to pay a fee.—
TAM Linhas Aéreas S.A.Receita Federal do Brasil19515-720.823/2018-11An administrative claim against TAM to collect alleged differences in SAT payments for the periods 11/2013 to 12/2017.A defense was presented on November 28, 2018. The Court of first instance dismissed the Company’s defense in August 2019.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) on September 17, 2019. The appeal filed by the company was denied on August 14, 2025. The company filed an appeal on September 18, 2025 that was dismissed. The company filed a new appeal on January 19, 2026. The company must await the resolution.126,588
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.938832/2013-19The decision denied the reallocation petition  and did not equate the Social Security Tax (COFINS) credit declarations for the second quarter of 2011, which were determined to be in the non-cumulative system (proportionality of the PIS and COFINS credits).An administrative defense was argued on March 19, 2019. The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.22,100
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.938834/2013-16The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the third quarter of 2011, which were determined to be in the non-cumulative system. (proportionality of the PIS and COFINS credits).An administrative defense was argued on March 19, 2019. The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.16,343

100
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.938837/2013-41The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the fourth quarter of 2011, which were determined to be in the non-cumulative system. (proportionality of the PIS and COFINS credits).An administrative defense was argued on March 19, 2019.  The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.21,371
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.938838/2013-96The decision denied the reallocation petition and did not equate the Social Security Tax (COFINS) credit declarations for the second quarter of 2012, which were determined to be in the non-cumulative system. (proportionality of the PIS and COFINS credits).We presented our administrative defense. The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.13,852
LATAM Airlines Group Argentina, Brasil, Perú, Ecuador, y TAM Mercosur.Juzgado de 1° Instancia en lo Civil y Comercial Federal N° 11 de la ciudad de Buenos Aires1408/2017Consumidores Libres Coop. Ltda. filed this claim on March 14, 2017 regarding a provision of services.  It petitioned for the reimbursement of certain fees or the difference in fees charged for passengers who purchased a ticket in the last 10 years but did not use it.Federal Commercial and Civil Trial Court No. 11 in the city of Buenos Aires.  After 2 years of arguments on jurisdiction and competence, the claim was assigned to this court and an answer was filed on March 19, 2019. The Court ruled in favor of the defendants on March 26, 2021, denying the precautionary measure petitioned by the plaintiff. The plaintiff requested on several occasions the opening of the trial, which was rejected by the Court due to the lack of notification of previous resolutions. The interim ruling on receiving evidence was rendered April 29, 2025 but evidence has not yet been presented. The plaintiff’s brief was answered on July 18, 2025 to oppose broadening the subject of the litigation proposed by the plaintiff, which intended to include a rate not in effect at the time the claim was filed. A ruling was rendered on the above-mentioned filing on November 27, 2025, sustaining the petition to expand the subject matter petitioned by the plaintiff. This court decision was appealed by the company on December 4, 2025, so it is not yet firm.—

101
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.Receita Federal de Brasil10.880.938842/2013-54The decision denied the petition for reassignment and did not equate the COFINS credit statements for the third quarter of 2012 that had been determined to be in the non-accumulative system. (proportionality of the PIS and COFINS credits).We presented our administrative defense. The Court of first instance dismissed the Company’s defense.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.15,800
TAM Linhas Aéreas S.A.Receita Federal de Brasil10.880.938844/2013-43The decision denied the petition for reassignment and did not equate the COFINS credit statements for the third quarter of 2012 that had been determined to be in the non-accumulative system. (proportionality of the PIS and COFINS credits).We presented our administrative defense. The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.14,513
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.938841/2013-18The decision denied the petition for reassignment and did not equate the COFINS credit statements for the second quarter of 2012 that had been determined to be in the non-accumulative system.(proportionality of the PIS and COFINS credits).We presented our administrative defense. The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.14,238
TAM Linhas Aéreas S.A.Receita Federal de Brasil10840.727719/2019-71The Federal Tax Service issued a notice of violation in applying for collection of the PIS/COFINS tax for 2014 (proportionality of the PIS and COFINS credits).We presented our administrative defense on January 11, 2020. The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese). A decision was rendered in October 2024 that was partially in favor of the Company. The Public Prosecutor filed a special appeal on which a decision is pending.43,821

102
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910559/2017-91A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the third quarter of 2014, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).It is about the non-approved compensation of Cofins. Administrative defense submitted (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020. The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.12,502
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910547/2017-67A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the first quarter of 2013, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.14,380
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910553/2017-14A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the fourth quarter of 2013, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.13,940
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910555/2017-11A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the first quarter of 2014, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.14,652

103
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910560/2017-16A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the fourth quarter of 2014, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.12,895
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910550/2017-81A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the third quarter of 2013, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.14,843
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910549/2017-56A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the second quarter of 2013, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.12,409
TAM Linhas Aéreas S.A.Receita Federal de Brasil10880.910557/2017-01A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the second quarter of 2014, which meant the non-accumulative system (proportionality of the PIS and COFINS credits).We presented our administrative defense (Manifestação de Inconformidade). The Court of first instance dismissed the Company’s defense in December 2020.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese) that is pending a decision.11,767

104
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.AReceita Federal do Brasil10840.722712/2020-05Administrative trial that deals with the collection of PIS/Cofins proportionality (fiscal year 2015).TAM presented an administrative defense but the decision was unfavorable. The Company filed a voluntary appeal and in March 2025, the appeals court opened an additional procedural stage in which the parties can present evidence and clarify certain positions. Is pending the procedural process35,198
TAM Linhas Aéreas S.A.Receita Federal do Brasil10880.978948/2019-86A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the fourth quarter of 2015, which meant the non-accumulative system (proportionality of the PIS and COFINS credits). TAM filed its administrative defense on July 14, 2020.  A decision is pending. The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese). A decision was rendered in May 2025 that was partially in favor of the Company. The Public Prosecutor filed a special appeal. The decision is pending.19,216
TAM Linhas Aéreas S.A.Receita Federal do Brasil10880.978946/2019-97A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the third quarter of 2015, which meant the non-accumulative system (proportionality of the PIS and COFINS credits). TAM filed its administrative defense on July 14, 2020 with an unfavorable decision.The Company filed an appeal with the appellate administrative court (CARF). A decision was rendered in September 2024 that was partially in favor of the Company. The Public Prosecutor filed a special appeal.11,620
TAM Linhas Aereas S.A.Receita Federal do Brasil10880.978944/2019-06A decision was rendered that refused the petition for reassignment and did not equate the COFINS credit declarations for the second quarter of 2015, which meant the non-accumulative system (proportionality of the PIS and COFINS credits). TAM filed its administrative defense on July 14, 2020 with an unfavorable decision.  A decision is pending. The Company filed an appeal with the appellate administrative court (CARF). A decision was rendered in October 2024 that was partially in favor of the Company. The Company presented its defense on August 11, 2025 and a decision is currently pending.12,300

105
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
Latam Airlines Group S.A23° Juzgado Civil de SantiagoC-8498-2020Class Action Lawsuit filed by the National Corporation of Consumers and Users (CONADECUS) against LATAM Airlines Group S.A. for alleged breaches of the Law on Protection of Consumer Rights due to flight cancellations caused by the COVID-19 Pandemic, requesting the nullity of possible abusive clauses, the imposition of fines and compensation for damages in defense of the collective interest of consumers. LATAM has hired specialist lawyers to undertake its defense.On 06/25/2020 we were notified of the lawsuit. On 04/07/2020 we filed a motion for reversal against the ruling that declared the action filed by CONADECUS admissible, the decision is pending to date. On 07/11/2020 we requested the Court to comply with the suspension of this case, ruled by the 2nd Civil Court of Santiago, in recognition of the foreign reorganization procedure pursuant to Law No. 20,720, for the entire period that said proceeding lasts, a request that was accepted by the Court. CONADECUS filed a remedy of reconsideration and an appeal against this resolution should the remedy of reconsideration be dismissed.  The Court dismissed the reconsideration on August 3, 2020, but admitted the appeal. On March 1, 2023, the Court of Appeals resolved to omit the hearing of the case and pronouncement regarding the appeal, in view of the fact that in January 2023 LATAM's request the end of the suspension of the process that was decreed by resolution of July 17, 2020 in case file C-8498-2020 of the 23rd Civil Court of Santiago, for which the file was sent to the first instance to continue processing. On November 24, 2023, the Court dismissed LATAM’S motion for reversal against the ruling that declared the action filed by CONADECUS admissible. Accordingly, on December 4, 2023, LATAM filed the statement of defense. A reconciliation hearing was held on March 27, 2024, but no agreement was reached. An interim decision on evidence was rendered on May 14, 2024, and on June 18th, the reconsideration of that resolution was denied, which began the evidentiary period. The parties were convened to hear a decision on May 27, 2025. The amount at the moment is undetermined.—
TAM Linhas Aéreas S.AReceita Federal de Brasil13074.726429/2021-41Notice of a violation prepared for the COFINS request regarding taxable events presumably occurring between 2016 and 2017.TAM filed its administrative defense with an unfavorable decision.  The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese). A partial decision on the appeal by LATAM Airlines Brazil was rendered on August 21, 2024. We need to wait for service of the decision to evaluate the next steps to take.20,367

106
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.Receita Federal de Brasil2007.34.00.009919-3(0009850-54.2007.4.01.3400)A lawsuit seeking to review the incidence of the Social Security Contribution taxed on 1/3 of vacations, maternity payments and medical leave for accident.In March 2007, the company filed a lawsuit protesting a court order so that the impact of social security payments on funds would not be eliminated (social security payments are applicable to 1/3 of vacation time, salary during maternity leave and illness subsidies). The decision rendered on February 2, 2008 was against the company, so it filed an appeal. The Appellate Court issued a decision partially in favor of the company. A Special/Extraordinary Remedy was filed that was stayed until the Court’s decision – (Topic STF 985). The matter was partially decided in the Supreme Court’s decision of June 2024 (STF) on the “leading case” of another company. After analyzing the decision by the Federal Supreme Court, LATAM Airlines Brazil confirmed that payments are owed for one-third of the vacation time from September 2020 to May 2024 and these amounts were deposited. The trial is expected to be completed.72,027
TAM Linhas Aéreas S.A.UNIÃO FEDERAL0052711-85.1998.4.01.0000An indemnity claim to collect a differentiated price from the Federal Union because of the disruption of the economic equilibrium in the concession agreements between 1988 and 1992. The indemnity, should the action prosper, cannot be estimated (Price Freeze).The lawsuit began in 1993. In 1998, there was a decision favorable to TAM. The process reached the Court, and in 2019, the decision was against TAM. The company has appealed and a decision is pending.—
TAM Linhas Aéreas S.ATribunal do Trabajo de São Paulo1000115-90.2022.5.02.0312A class action whereby the Air Transport Union is petitioning for payment of additional hazardous and unhealthy work retroactively and in the future for maintenance/CML employees.The action was considered partially valid. The parties filed an appeal. The appeals are pending referral to the Superior Labor Court for a decision.566

107
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.AReceita Federal15746.728063/2022-00This is an administrative claim regarding alleged irregularities in the payment of Technical Assistance (SAT) in 2018. The trial court administrative defense has been presented and the ruling was adverse. The company filed an appeal that was referred to the Brazilian Federal Administrative Tax Court (CARF in Portuguese) for a ruling on December 4, 2024. One of the judges asked to analyze the case. In February 2025, after the proceedings returned to trial, an additional procedural stage was initiated in which the parties can present evidence and clarify certain positions. The procedural process by the Treasury is pending.19,575
TAM Linhas Aéreas S.AUnião Federal1003320-78.2023.4.06.3800Legal action to discuss the debit of the administrative process 10611.720630/2017-16 (fine for violation of incorrect registration in DI- import declaration).Distributed on January 19, 2023. The company obtained a precautionary measure suspending the collection without the need for a guarantee. The company obtained favorable decisions in the first and second instances, and the debt was canceled. The Treasury filed a Special Appeal and is awaiting trial.22,120
TAM Linhas Aéreas S.AUnião Federal12585.720017/2012-84This is a petition to recover a credit (proportional) in the 3rd quarter of 2010 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese). Administrative defense presented. The administrative defense was denied. The Company presented a Voluntary Appeal (CARF) which was denied. A special appeal was presented, which was partially favorable. Waiting for the “liquidação” decision to be finalized.10,291
TAM Linhas Aéreas S.AUnião Federal10880-982.487/2020-80This is a petition to recover a credit (proportional) in the 4rd quarter of 2016 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese) (proportionality of the PIS and COFINS credits).An administrative defense was presented but was dismissed. The Company filed an Appeal to the Appellate Branch of the Internal Revenue Administrative Court (CARF in Portuguese). On September 17, 2024, an additional procedural stage was initiated to analyze overdue claims, allowing the parties to present evidence and clarify certain positions. This procedural step is pending.10,377

108
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.AUnião Federal10880-967.530/2022-49This is a petition to recover a credit (proportional) in the 1rd quarter of 2018 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese). (proportionality of the PIS and COFINS credits).An administrative defense was presented. A decision is pending.10,810
TAM Linhas Aéreas S.AUnião Federal10880-967.532/2022-38This is a petition to recover a credit (proportional) in the 2rd quarter of 2018 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese). (proportionality of the PIS and COFINS credits).An administrative defense was presented and a decision is pending.11,611
TAM Linhas Aéreas S.AUnião Federal10880-967.533/2022-82This is a petition to recover a credit (proportional) in the 4rd quarter of 2018 under the Social Security Financing Contribution program (abbreviated as COFINS in Portuguese). (proportionality of the PIS and COFINS credits).An administrative defense was presented and a decision is pending.20,492
TAM Linhas Aéreas S.AUnião Federal19613.725650/2023-86A Notice of Violation prepared in the petition by the Social Integration Program (abbreviated as PIS in Portuguese) and by COFINS on taxable events allegedly occurring between May 2018 and December 2018. (proportionality of the PIS and COFINS credits).An administrative defense was presented and a decision is pending.14,295

109
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
LATAM Airlines Group S.A.23° Juzgado Civil de SantiagoC-8156-2022A class action filed by CONADECUS against LATAM Airlines Group S.A. for alleged violations of the Consumer Protection Law because of the cancellation of tickets for international flights purchased through travel agencies. It petitioned for fines and damage indemnities to be imposed in defense of the collective and/or diffuse interest of consumers. LATAM has retained specialized legal counsel to defend it.We were served the claim on September 21, 2023. On September 30, 2023, we filed a remedy of reconsideration against the decision that declared the lawsuit filed by CONADECUS admissible, which was dismissed by the Court on November 11, 2023. On November 18, 2023, LATAM filed the statement of defense. On August 6, 2024, LATAM petitioned that the proceedings be declared to have been abandoned, a request that was granted by resolution dated March 27, 2025. The National Association of Consumers and Users of Chile (CONADECUS in Spanish) filed an appeal against the decision on April 2, 2025, which was sustained in a ruling rendered August 20, 2025. On November 26, 2025, the Court summoned the parties to a reconciliation hearing, which did not take place due to lack of notification.—
TAM Linhas Aéreas S.AUnião Federal10880.967587/2022-48This is about the unaccredited compensation/reimbursement and redress regarding the improper payment of the monthly federal social assistance contribution (Cofins, as abbreviated in Portuguese) made in the third quarter of 2018.The administrative defense has been presented and a decision is pending.11,697

110
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
LATAM Airlines Group S.A.Tribunal de Defensa de la Libre CompetenciaNC-388-2011











NC-524-2023		NC-388-2011. On August 11, 2023, the Civil Aviation Administration (“JAC,” as abbreviated in Spanish) filed a petition for clarification with the Anti-Trust Court (“TDLC,” as abbreviated in Spanish) regarding Condition VIII.4 of Decision #37/2011 (“Condition VIII.4”). The petition seeks to impose a temporary 5 years limitation on 23 frequencies assigned by the JAC to LATAM after Decision #37 was issued.




NC-524-2023. JetSmart filed a non-contentious inquiry on September 26, 2023, in relation to the terms of the future public tender of aviation frequencies on the Santiago-Lima route.
The TDLC accepted LATAM’s remedy of reconsideration on October 17, 2023 and amended its previous ruling and dismissed the JAC’s petition for clarification. On October 23, 2023, the JAC presented an appeal to the Supreme Court requesting that the TDLC resolution be annulled and petitioned declared admissible the remedy of reconsideration. The Supreme Court unanimously dismissed the appeal against judgment by the JAC, LATAM opposed both actions of the JAC. There are no appeals pending in this case.


In a separate but related process, JetSmart filed a non-contentious inquiry on September 26, 2023, in relation to the terms of the future public tender of aviation frequencies on the Santiago-Lima route. JetSmart requested an injunction to suspend the tender and maintain the aviation frequency assignments as currently held until the inquiry has finalized. The TDLC declared the inquiry admissible on October 2, 2023, but only to begin a procedure to determine whether the rules in the terms of the public aviation frequency tender violate Decree Law 211, and dismissed the request for provisional measures. JetSmart filed two remedies of reconsideration against the decision by the Antitrust Court on October 4, 2023. The JAC became a party to such motions on October 6, 2023 and LATAM became a party to the process on October 10, 2023, and it requested that the motions filed by JetSmart be dismissed. On October 16, 2023, the TDLC took into account the considerations presented by LATAM and rejected the two motions for reconsideration filed by JetSmart. On October 19, 2023 CONADECUS requested to become part of this process and requested the same injuction previously rejected twice by the TDLC. On October 23, 2023 LATAM submitted a brief to the TDLC requesting the rejection of saidinjuction now requested by CONADECUS. On October 23, 2023, a public auction was held by JAC for thirteen international frequencies for the Santiago - Lima route, LATAM won ten of thirteen of these routes. (Continues on the next page)
—

111
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
(Continues from the previous page)
On October 24, 2023, JetSmart once again requested that an injunction be issued regarding the public tender of aviation frequencies on the Santiago-Lima route. On October 30, 2023, LATAM filed a brief petitioning for the dismissal of the new precautionary measure petition of JetSmart. On November 2, 2023, the TDLC rejected the request for injunctions submitted by JetSmart and CONADECUS. On December 5, 2023, JetSmart complied with TDLC procedural order and published in the Chilean official newspaper a notice calling interested parties and stakeholders to submit information and opinions regarding JetSmart’s inquiry . On December 21, 2023 the FNE requested to be an intervening party in the process and requested to extend the deadline to provide background information. The TDLC accepted the postponement, leaving the deadline for providing information as February 5, 2024. On February 1, 2024, LATAM submitted a brief to TDLC advocating for its position and providing background information regarding JetSmart’s inquiry. The Office of the National Economic Prosecutor (FNE), the JAC, the National Consumer Service (SERNAC), Sky Airline and CONADECUS also provided information in January and February 2024. The Civil Aviation Board submitted a petition for clarification to the Antitrust Court on February 13, 2024, asking whether a tender could be convened of international frequencies on the Santiago-Lima Route that expire in 2024. LATAM filed a brief on February 15, 2024 stating that no matter needed to be clarified and that the petition should be dismissed. The Antitrust Court ruled against the Civil Aviation Board on February 15, 2024 because there were no obscure or doubtful aspects to clarify. On April 25, 2024, a tender was held for two Santiago-Lima frequencies and both were awarded to JetSmart. LATAM furnished the certificate of that tender to the Antitrust Court. On June 19, 2024, LATAM accompanied an economic report and observations to the report presented by JetSmart. On July 19, 2024, the JAC, JetSmart, LATAM and Sky presented additional information. On July 31, 2024, the Public Hearing was held at the TDLC, with the participation of the JAC, the FNE, JetSmart, CONADECUS and LATAM. On December 18, 2024, the Antitrust Court of Chile (TDLC in Spanish) asked the Office of the National Economic Prosecutor (FNE in Spanish) to report on the status of the investigation in Case #2755-24 mentioned in the information it provided, and it asked the Civil Aviation Board (JAC in Spanish) to report on the status of the citizen consultation regarding a change in the frequency assignment regulations. Both the FNE and the JAC presented their responses on December 24, 2024. On January 10, 2025, the TDLC dismissed JetSmart’s petition in the non-contentious process dated September 26, 2023 and declared that the tender terms and conditions created no material risks that might violate the provisions in Decree Law 211. On January 24, 2025, JetSmart filed an appeal against the TDLC ruling , which will be reviewed by the Supreme Court. The case was heard by the Supreme Court on October 6 and 7, 2025, and LATAM participated in the arguments. The court has made a decision that is in the process of being drafted.

112
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.A.União Federal10880.967612/2022-93This is a petition to recover a credit Cofins in the 1rd quarter of 2019 (proportionality of the PIS and COFINS credits).The administrative defense has been presented and a decision is pending.11,626
TAM Linhas Aéreas S.AUNIÃO FEDERAL1012674-80.2018.4.01.3400Legal actions for members to have the right to collect contributions in the payroll collectible on the basis of gross sales.This claim was filed in 2018. In January 2020, a decision favorable to the Company was rendered so that contributions would be collected on the basis of gross income. The company recently learned that the Superior Courts are rendering decisions unfavorable to contributors. They have ruled against the contributor in a recent decision. In December/2023 the position was withdrawn.—
LATAM Airlines Perú S.A.Tribunal Fiscal-Appeal N°4070350001313 filed on January 22, 2025 against Intendancy Resolution #4070140001797 served December 31, 2024, which declared the Company’s remedy of claim unfounded. Decision Resolutions #0120030130232 and #0120030130245 were notified on December 22, 2022, as was Fine Resolution #0120020038314, notified on December 22, 2022 and Determination Resolution No. 0120030130245 for indirect disposal of income not susceptible to subsequent tax control linked to the objections made to determination of third category net income for fiscal year 2015.On January 26, 2023, the Company filed an appeal against the determination and fine resolutions issued by SUNAT. Through Resolution of the Intendencia No. 4070340000928 dated December 19, 2023, SUNAT declared the appeal filed by the Company founded and, consequently, Determination Resolutions No. 012-003-0130232, No. 012-003- 0130245 and Fine Resolution No. 012-002-0038314 are void. The audit area voided the objection to the Major Maintenance expense of approximately $63 million in the notice of Complementary Outcome of Request #0122220002363 dated September 4, 2024. However, it maintains the other objections. Decision Resolutions #0120030139681 and #0120030139682 were notified on September 16, 2024, as was Fine Resolution #0120020040024 because of a violation of Article 178.1 of the Tax Code. The Company filed a remedy of claim on October 23, 2024 against those resolutions, which was processed under Claim Docket #4070340001599. However, the National Customs and Tax Administration Commission (SUNAT in Spanish) decided, in Intendancy Resolution #4070140001797 notified December 31, 2024, to declare that the Company’s remedy of claim was unfounded. Consequently, on January 22, 2025, an appeal was filed against this ruling before the Tax Court. On July 25, 2025, the Company received notification of Decision No. 06398-1-2025 by the Tax Court that declared that the ruling admitting the appeal was null and void because it was confirmed that the National Customs and Tax Administration Commission (SUNAT in Spanish) had not presented the complete file on the audit and administrative claim procedures. Therefore, in compliance with the Tax Court’s decision, SUNAT re-submitted the complete file in Official Letter No. 4194 on August 21, 2025. A ruling on the file is currently pending.122,953

113
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.AUnião Federal10880-927.871/2023-62This is a petition to recover Social Security Funding Contributions (Cofins in Portuguese) from the first semester of 2020 (proportionally).The administrative defense has been presented and a decision is pending.13,404
TAM Linhas AéreasUnião Federal19613.720519/2024-11On February 7, 2024, the Brazilian Federal Tax Service issued a tax assessment against TAM Linhas Aéreas (19613.720519/2024-11) for the amount of ThUS$47.104 (MR$262.845) related to certain tax credits on “PIS COFINS” ( Federal Social Contributions Taxed on Gross Income) during the 2019/2020 period.
The company filed an administrative response challenging the total amount of the tax assessment. The company received a partial decision on its defense on September 11, 2024. The company filed an appeal and is awaiting a decision on it.55,042
LATAM Airlines Group S.A.15° Juzgado Civil de SantiagoC-15990-2024This is a class action filed by the National Consumers and Users Association (abbreviated as CONADECUS in Spanish) against LATAM Airlines Group S.A., American Airlines, Inc. and Delta Airlines, Inc. alleging several infringements of the Consumer Protection Law because flights were cancelled due to a flaw in the Crowdstrike antivirus software. It is petitioning for the imposition of fines and a damage indemnity in defense of the collective or diffuse interest of consumers.LATAM has retained expert attorneys to handle its defense. LATAM Airlines Group was served the claim on September 17, 2024. On September 27, 2024, LATAM filed a remedy of reconsideration against the resolution that declared the action filed by the National Consumers and Users Association (CONADECUS in Spanish) admissible, which was dismissed by the court on November 20, 2024. LATAM filed a brief of answer to the claim on December 9, 2024. The conciliation hearing was held on February 19, 2025, but no agreement was reached. The interlocutory evidence hearing was issued on April 3, 2025, which was notified to LATAM on September 8, 2025. The ordinary evidentiary phase ended November 5, 2025.—

114
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
LATAM Airlines BrasilCourts of the Sao Paulo, Rio Grande do Sul, Parana, Rio Grande do Norte, Santa Catarina, Ceará, Regional Labor Court of the 15ª Región and Federal Regional Court of the 4ª RegionVarious roles listed in detail in the fifth columnLawsuits against the companies Voepass and LATAM Airlines Brasil for alleged liability in civil proceedings, filed by the families of the victims of the Flight 2283 plane crash. Claims were also filed against ANAC, the Brazilian civil aviation regulatory agency, and ATR (Avions de Transport Régional, an aircraft manufacturer) in cases 5002529-15.2025.4.04.7005 and 5002829-74.2025.4.04.7005. All these litigations are under insurance coverage.Cases with a determined value of the cause and without an settlement approved by the Court: Thiago Cavalcanti Sartori and others (Rol 1031322-41.2025.8.26.0100), Gabriela Michel (Rol 5007465-09.2024.8.21.0087), Wilson dos Santos Silva and other (Rol 5002829-74.2025.4.04.7005), Éder Schulz, Marli Schulz and Valentina Siveris (Rol 4045612-10.2025.8.26.0100) and Rosana Barbosa Bartinik (Rol 0059347-06.2025.8.16.0021). Cases with an extrajudicially settlement approved by the Court regarding the compensation action: Luana dos Santos Bezerra Bounhe and others (Rol 1002928-30.2024.8.26.0659), Gabriel Michel (Rol 5004461-61.2024.8.21.0087), Armindo Michel (Rol 5005103-34.2024.8.21.0087), Anna Maria Michel (Rol 5000075-51.2025.8.21.0087), Marcos Vinícius Ávila Santana and others (Rol 0012257-66.2024.5.15.0004), Maria Fernanda Azevedo Pompilio Leonel Ferreira and others (Rol 0045785-61.2024.8.16.0021), Laura dos Reis Camilo and other (Rol 1182239-09.2024.8.26.0100), Aracy Ribeiro Moreira and others (Rol 1174718-13.2024.8.26.0100), Silvia Nicole Dantas Costa Maia and others (Rol 1003874-02.2024.8.26.0659), Lívia Raquel de Souza Dutra and others (Rol 3036952-42.2024.8.06.0001), Fernanda Laice de Gois Nascimento Paula and others (Rol 0827620-90.2024.8.20.5106), Ana Lurdes de Souza and other (Rol 5000032-19.2025.8.24.0027), Naira Maria da Silva Gusson do Nascimento (Rol 1001368-42.2024.8.26.0695), Araceli Ciotti de Marins and others (Rol 0043796-20.2024.8.16.0021), Beatriz Alves Coca Navarro and others (Rol 1001217-87.2025.8.26.0292), Beatriz da Costa Silva (Rol 5002529-15.2025.4.04.7005) and in the proceedings brought by the relatives of Rosana Santos Xavier (Rol 1000691-14.2025.8.26.0198). Currently, there are no more cases with an undetermined case value and without an approved out-of-court settlement. The settlement amount has already been paid by the insurer, and the proceedings will be closed. All these litigations are under insurance coverage.—
LATAM Airlines BrasilUnião Federal17459.720028/2024-67A Notice of Infringement was received in which the business fund amortizations (agiotage) made in the 2019 and 2020 calendar years were rejected in the calculation of Business Income Tax (IRPJ in Portuguese) and the Social Assessment on Earnings (CSL in Portuguese).An administrative defense has been presented. The company was notified of an unfavorable decision and it filed an Appeal on September 18, 2025.25,672

115
CompanyCourtCase NumberOriginStage of trialAmounts
Committed (*)
ThUS$
TAM Linhas Aéreas S.ATribunal Laboral Regional da 10° Región - TRT 100000582-04.2021.5.10.0020Public civil action filed by the National Aeronautics Union seeking that the company reinstate employees dismissed for alleged discrimination after they opposed the company's proposed salary reduction.The first instance court ruled that the union lacked standing and terminated the action. The union filed an appeal. The second instance court overturned the ruling and ordered the reopening of the investigation. Currently awaiting trial by the Supreme Court of Justice (TST).14,541
TAM Linhas Aéreas S.AUnião Federal10880.722355/2014-52This is a notice of infringement that seeks to require the company to submit the PIS and COFINS - 3rd quarter 2009 to 1st quarter 2011 (proportionality)The company obtained a favorable decision in the first and second instance canceling the debt. The case must be closed.11,389
ABSA Aerolinhas Brasileiras S.A.União Federal - Fazenda Nacional1022008-31.2024.4.01.3400This is a claim seeking that the legal relationship binding the company to pay a fine of 10% because of a violation of the temporary admission system be declared non-existent (linked to claims 10715-722.602/2017-75 and 10715-722.603/2017-10).A decision rendered April 24, 2024 impeded the presentation of a guarantee by the company. The Treasury Service filed an appeal against that decision and the commencement of the court trial is now pending.11,291
TAM Linhas Aéreas S.AUnião Federal16327.973971/2024-11Petition to make use of the Cofins credit in the 4th quarter of 2022 (proportionally).The Company presented its administrative defense on November 5, 2025 and is awaiting a decision.15,753
TAM Linhas Aéreas S.AUnião Federal16327.973969/2024-34Petition to make use of the Cofins credit in the 3th quarter of 2022 (proportionally).The Company presented its administrative defense on November 5, 2025 and is awaiting a decision.10,341

116
In order to deal with any financial obligations arising from legal proceedings in effect at December 31, 2025, whether civil, tax, or labor, LATAM Airlines Group S.A. and Subsidiaries, has made provisions, which are included in Other non-current provisions that are disclosed in Note 20.

The Company has not disclosed the individual probability of success for each contingency in order to not negatively affect its outcome.

(*) The Company has reported the amounts involved only for the lawsuits for which a reliable estimation can be made of the financial impacts and of the possibility of any recovery, pursuant to Paragraph 86 of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.


117

II. The following table contains the proceedings that were closed or changed to remote status during 2025, according to what was disclosed in the contingencies note of the corresponding financial statement:


CompanyCourtCase NumberOriginStage of trialStatus
TAM Linhas Aéreas S.A.Superior Tribunal de Justiça (STJ)0042711-61.2007.8.05.0001 (1449899)Trial involving a commercial representation contract signed directly with the company Gm Serviços Auxiliares de Transporte Aéreo Ltda. alleging the irregular closing of the contract, requesting payment of compensation.The procedure before the Court of Appeal is pending. An agreement was made for the payment of ThUS$4,480 (R$25,000,000.00).The payment in the agreement was made in full.Disclosed in the Company's consolidated financial statements as of December 2024
LATAM Airlines Group S.ATribunal de Defensa de la Libre Competencia445-2022On May 21, 2022, Agunsa filed a petition to TDLC for a preliminary preparatory measure of exhibition of documents in respect of Aerosan, Depocargo, Sociedad Concesionaria Nuevo Pudahuel and Fast Air in which Agunsa claimed that it was impacted by alleged anti-competition practices on the import cargo warehousing market at the Arturo Merino Benitez International Airport.Fast Air was served on June 9, 2022 and on June 13, 2022, it lodged opposition against this petition, which was partially sustained by the Antitrust Court (TDLC) on July 19, 2022, in which the new exhibition date was set as August 22nd (the original date set by the court was July 1, 2022). On July 25, 2022, Fast Air requested a reconsideration of this latter court decision and petitioned that the temporary scope of the exhibition be reduced. Fast Air’s petition was sustained and the scope of the documents to be revealed was limited even further. On August 12th, Fast Air petitioned that a new date and time be set for the exhibition hearing. The court granted this latter request on August 17th and set the exhibition date as August 31st. Fast Air appeared with 368 files and asked for confidentiality and/or secrecy of all of the information presented. The public versions have already been added to the case file as final versions. Aerosan began a separate, but related, non-contentious inquiry on April 20, 2023 before the Anti-Trust Court (abbreviated as TDLC in Spanish) petitioning that the TDLC decide whether the enforcement of Exempt Resolution #152 of the National Customs Bureau would violate Decree Law 211. Said Resolution #152 granted Agunsa permission to operate as a cargo warehouse at the North Warehouse facility. On January 10, 2024, the Public Hearing of the case was held. On July 15, 2024, the TDLC resolved that the Resolution of the National Customs Bureau consulted by Aerosan did not violate Law Decree No. 211. For the time being, the amount is indeterminate.Disclosed in the Company's consolidated financial statements as of December 2024
LATAM Airlines Group S.AFNE2585-19On October 15, 2019, LATAM Airlines Group S.A. received the resolution issued by the National Economic Prosecuting Authority (“FNE”) which begins an investigation Role N°2585-19 into the agreement between LATAM Airlines Group S.A. and Delta Air Lines, Inc (“Delta”). On August 13, 2021 FNE, Delta and LATAM reached an out-of-court agreement that put an end to this investigation. On October 28, 2021, the Tribunal de Defensa de la Libre Competencia approved the out-of-court agreement reached by LATAM and Delta with the FNE. The investigation is completed.Disclosed in the Company's consolidated financial statements as of December 2024





118
III. Governmental Investigations.


1) LATAM Airlines Group S.A. received a resolution by the National Economic Prosecutor (FNE) on February 1, 2018 beginning Investigation 2484-18 on air cargo carriage. On August 29, 2023, the Office of the National Economic Prosecutor (FNE) decided to separate part of the information from such investigation and created a new Case #2729-23 relative to cargo carriage on charter flights from Santiago to Easter Island during the pandemic. The investigation under Case #2729-23 was archived and ended with no action taken by the FNE. An ordinary official letter was received in Case #2484-18 on August 28, 2023 in which the FNE requested further information from LATAM, the response to which was sent on September 27, 2023. An Official Ordinary Letter was received on October 14, 2024 in which the FNE requested additional information from LATAM. That letter was answered on November 4, 2024. The most recent activity in the investigation of Case #2484-18 is an Official Ordinary Letter dated November 21, 2024, which was answered in two parts: the first on December 6, 2024 and the second on December 11, 2024.

2) On October 13, 2020, the FNE gave notice that it had begun an investigation under Case #2630-2020 because of a claim about travel agency fees. On March 14, 2025, the FNE decided to separate this investigation and create a new Case #2797-25 on the implementation of New Distribution Capability (NDC) systems by airlines present in Chile. On July 18, 2025, investigation #2630-20 was archived without any action by the FNE. Regarding investigation file number 2797-25, LATAM received an official letter on December 9, 2025, which was answered on December 22. The most recent activity in investigation file number 2797-25 is an official letter received on January 15, 2026, the response to which is currently being prepared and is within the established deadlines.

3) LATAM Airlines Group S.A. received a resolution by the National Economic Prosecutor (FNE) on August 12, 2021 beginning Investigation N° 2669-21 on compliance with condition VII Res. N° 37/2011 from TDLC related to restrictions as to certain codeshare agreements. On October 2, 2023, the FNE decided to separate part of the information in such investigation. Case #2737-23 will be about the code share agreements between LATAM and Delta that LATAM petitioned be amended; and Case #2669-21 will be about the remaining code share agreements. In relation to the investigation with Role No. 2737-23, dated November 06, 2023, the FNE and LATAM reached an extrajudicial agreement in order to allow certain codeshare agreements between LATAM and Delta to be modified. On December, 7, 2023, TDLC approved the extrajudicial agreement reached by LATAM and the FNE. An Official Ordinary Letter was received on March 4, 2024 in the investigation in Case #2669-21 in which the FNE requested additional information from LATAM. That letter was answered on March 15, 2024. An Official Ordinary Letter was received on April 19, 2024 in which the FNE requested additional information from LATAM. That letter was answered on May 2, 2024. On December 11, 2024, LATAM received an Ordinary Official Letter in which the FNE requested additional information, which was answered by LATAM in two parts: the first dated December 26, 2024, and the second dated January 8, 2025. On April 8, 2025, LATAM received an official ordinary letter in which the FNE requested further information, which LATAM answered on May 7, 2025. The most recent activity in the investigation under Case #2669-21 is an official ordinary letter dated June 9, 2025 that was answered on June 23, 2025. On September 3, 2025, the FNE again decided to disassemble part of the background information from investigation No. 2669-21, leaving Investigation No. 2824-25 for the investigation regarding codeshare agreements and other cooperation and coordination agreements between LATAM and third-party airlines and the competition conditions on routes connecting Chile with Oceania and Europe operated by LATAM. Regarding Investigation No. 2824-25, on September 8, 2025, LATAM received an Ordinary Letter in which the FNE requested background information, which was requested in two deliveries: the first was answered on September 16, 2025, and the second was answered on October 15, 2025. The most recent activity is an official letter sent by the Office of the National Economic Prosecutor (FNE in Spanish) on November 6, 2025 that was answered December 5, 2025.

4) The competition authority sent an inquiry [or request] to TAM Linhas Aéreas S.A. (LATAM Airlines Brasil) with the objective of obtaining information regarding certain pricing issues, which was received by the company on November 27, 2023. On December 29, 2023, CADE sent a new request to LATAM Airlines Brasil requesting more complete information, to which LATAM responded in parts, on February 16, 2024, March 11, 2024, March 22, 2024 and June 11, 2024. On February 25, 2025, the Administrative Council for Economic Defense (CADE in Portuguese) sent a new letter to LATAM Airlines Brazil requesting additional information on the pricing process, which LATAM answered on April 3, 2025. The investigation process remains open until December 22, 2025, that date can be modified by the authorities. LATAM Airlines Brasil is collaborating with the authority and remains committed to transparency and compliance with all applicable rules and regulations.

119

5) Brazilian consumer authorities sent three official letters to LATAM Airlines Brazil in August and September 2024 requesting information on the crash of a Voepass airplane. LATAM Airlines Brazil has a code-share agreement with Voepass. The company answered those letters properly by the deadline. The National Consumer Secretariat and the Consumer Defense Institute of the State of São Paulo (PROCON SP) decided to archive the procedure due to the sufficiency of the responses presented by the company. The procedures before the Consumer Defense Institute of the State of Paraná (PROCON PR) are still ongoing. LATAM Airlines Brazil also received an official letter from the Office of the Public Prosecutor on August 12, 2024, which it answered on August 27, 2024 (IC 0161.0001107/2024). On September 5, 2024, the Prosecutor's Office issued a decision to separate the procedure into three specific topics: (1) security matters, in which LATAM Airlines Brasil is not a party (IC 14.0156.0004310/2024); (2) consumer matters (IC 0161.0001000/2024), with two representations filed, already archived; and (3) compensation matters, It is also archived. Remote. By filing the main civil investigation (IC 0161.0001107/2024), the Public Prosecutor's Office determined the opening of (1) a new civil investigation to determine the collective moral damages (LATAM Airlines Brasil has not yet been notified of the opening of this procedure) and (2) an administrative process to accompany the payment of compensation under PR 22883 (LATAM Airlines Brasil has not yet been notified of the opening of this procedure). Possible. On January 17, 2025, the Public Defender's Office of Paraná reported the opening of an administrative process to determine the collective moral damages. LATAM Airlines Brasil has been notified of the opening of the process, but, to date, no additional information has been requested from the company. Possible. On March 11, 2025, PROCON SP sent a letter to LATAM Airlines Brasil requesting information on metrics and measures taken to serve customers following the suspension of Voepass operations by the National Civil Aviation Agency (ANAC). The response was submitted on March 18, 2025. Possible. On March 12, 2025, the Consumer Protection Institute of Juiz de Fora (Minas Gerais State) announced the opening of an administrative proceeding, also seeking information on customer service following the suspension of Voepass operations. The response was submitted on March 19, 2025. On May 6, 2025, the Office of the Federal Prosecutor sent an official letter to LATAM Airlines Brazil requesting clarification of a claim filed by a consumer, especially in relation to the delays in Voepass flights and aircraft conditions. The company answered that letter on June 5, 2025. The procedure was later quashed since Voepass’ authorization to sell flights was definitively revoked by the National Civil Aviation Agency (ANAC in Spanish).


IV. The Supreme Federal Court (STF) of Brazil, in the judicial proceeding of General Impact Issue 1417 (single judicial process 0834466-97.2024.8.19.0209), and without prejudice to the fact that the STF will rule on this case in the future and issue a final judgment based on its merits, it has already issued the two following rulings in said proceeding:

1) On August 23, 2025, it determined that the final judgment of this judicial proceeding will be applicable to all proceedings of similar facts in Brazil (recognition of general impact); and

2) On November 26, 2025, the STF partially suspended the ongoing judicial proceedings on a national level in Brazil, in the civil-consumer area, that address the liability of airlines for flight delays or cancellations caused by unforeseen events or force majeure and compensation for moral damages.

Although LATAM Airlines Brazil has already suspended nearly 10,000 cases to date, it expects this number of suspensions to continue growing.

The provisions for all proceedings remain in place until a final ruling is issued in each case.










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NOTE 31 - COMMITMENTS


(a)     Commitments arising from loans

In relation to certain contracts committed by the Company for the financing of the Boeing 777 aircraft, which are guaranteed by the Export – Import Bank of the United States of America, limits have been established for some financial indicators of LATAM Airlines Group S.A. on a consolidated basis. Under no circumstance does non-compliance with these limits generate loan acceleration.

The Company and its subsidiaries do not have credit agreements that impose limits on financial indicators of the Company or its subsidiaries, with the exception of those detailed below:

On July 15, 2024, LATAM Airlines Group S.A., acting through its Florida branch, amended, increased and extended the 2022 revolving credit facility (“Exit RCF”) from US$500 million to US$750 million with a consortium of nine banks led by JP Morgan Chase Bank, N.A. As of December 31, 2025, this credit facility is undrawn and fully available. Additionally, LATAM Airlines Group S.A., together with Professional Airline Services Inc., a Florida corporation and wholly owned subsidiary of LATAM Airlines Group S.A., issued: (i) on October 12, 2022, as amended on November 3, 2022, a five-year loan (“Term Loan B”) for US$1.1 billion (on October 15, 2024, this loan was fully repaid), (ii) on October 18, 2022, senior secured notes at 13.375% maturing in 2027 (“2027 Notes”) for a total principal amount of US$450 million (on October 15, 2024, this loan was fully repaid), and (iii) on October 18, 2022, senior secured notes at 13.375% maturing in 2029 (“2029 Notes,” together with the 2027 Notes, the “Notes”) for a total principal amount of US$700 million (on July 7, 2025, this loan was fully repaid). The Exit RCF, the Term Loan B, and the Notes (collectively, the “Exit Financing”) previously shared the same intangible collateral, consisting primarily of the FFP business (LATAM Pass loyalty program), the cargo business, certain slots, gates, and routes, as well as intellectual property and LATAM trademarks. The Exit Financing contains certain covenants that limit the ability of the Company and its subsidiaries to, among other things, make certain types of restricted payments, incur debt or liens, merge or consolidate with others, dispose of assets, enter into certain affiliate transactions, engage in certain business activities, or make certain investments. Additionally, the agreements include a minimum liquidity covenant requiring the Company to maintain a minimum liquidity level, measured at the consolidated level of the Company (LATAM Airlines Group S.A.), of US$750 million.

On July 15, 2024, LATAM Airlines Group S.A., acting through its Florida branch, amended, increased and extended the 2016 revolving credit facility (“RCF”) with a consortium of nine financial institutions led by Citibank, N.A., guaranteed by aircraft, engines and spare parts for a total committed amount from US$600 million to US$800 million. The RCF includes restrictions of minimum liquidity measured at the consolidated Company level (with a minimum level of US$750 million) and measured individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A. (with a minimum level of US$400 million). Compliance with these restrictions is a prerequisite for drawing under the line; if the line is used, compliance with said restrictions must be reported periodically, and non-compliance with these restrictions may trigger an acceleration of the loan. As of December 31, 2025, this line of credit is undrawn and fully available.

On November 3, 2022, LATAM Airlines Group S.A., acting through its Florida branch, entered into a five-year loan agreement (“Spare Engine Facility”) with, among other institutions, Crédit Agricole Corporate and Investment Bank, acting through its New York branch as loan agent, secured by spare engines for a principal amount of US$275 million. As of November 4, 2024, this loan was fully repaid. The loan included minimum liquidity covenants measured at the consolidated level of the Company (with a minimum level of US$750 million) and individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A. (with a minimum combined level of US$400 million).

On October 15, 2024, LATAM Airlines Group S.A. received the funds from its issuance of secured bonds at 7.875% maturing in 2030 (“2030 Notes,” together with the 2029 Notes, the “Notes”) for a total principal amount of US$1.4 billion. The Exit RCF and the Notes share the same intangible collateral, consisting primarily of the FFP business (LATAM Pass loyalty program), the cargo business, certain slots, gates, and routes, as well as intellectual property and LATAM trademarks. Additionally, the agreements include a minimum liquidity covenant requiring the Company to maintain a minimum liquidity level, measured at the consolidated level of the Company (LATAM Airlines Group S.A.), of US$750 million. The funds received were used to repay the Term Loan B and part of the 2027 Notes.

On November 4, 2024, LATAM Airlines Group S.A., acting through its Florida branch, entered into a new four-year revolving credit facility, secured by spare engines (“Spare Engine Facility”), with, among other institutions, Crédit Agricole Corporate and Investment Bank as loan agent, for a total amount of US$300

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million, of which US$275 million was drawn on the same day, leaving US$25 million available for the Company when required. The loan included minimum liquidity covenants measured at the consolidated level of the Company (with a minimum level of US$750 million) and individually for LATAM Airlines Group S.A. and TAM Linhas Aéreas S.A. (with a combined minimum level of US$400 million). The funds received were used to fully repay the previous spare engine financing. Finally, this issuance was linked to sustainability (“Sustainability-Linked”), which entails a commitment to reducing CO2 emissions intensity from March 2025 until the maturity of the facility. Compliance or non-compliance with these targets does not result in acceleration of the credit but instead applies a reward or penalty, respectively, on the interest rate.

On July 7, 2025, LATAM Airlines Group S.A. received the funds from its issuance of secured bonds at 7.625% maturing in 2031 (“2031 Notes,” together with the 2030 Notes, the “Notes”) for a total principal amount of US$800 million. The Exit RCF and the Notes share the same intangible collateral, which was amended respect to Exit Financing, and consists primarily of the FFP business (LATAM Pass loyalty program), as well as certain intellectual property and LATAM trademarks. Additionally, the agreements include a minimum liquidity covenant requiring the Company to maintain a minimum liquidity level, measured at the consolidated level of the Company (LATAM Airlines Group S.A.), of US$750 million. The funds received were completely used to repay the 2029 Notes.

As of December 31, 2025, the Company complies with the aforementioned minimum liquidity covenants.




b)     Other commitments

As of December 31, 2025, the Company maintains valid letters of credit, guarantee notes and guarantee insurance policies, according to the following detail:

Creditor GuaranteeDebtorQuantityTypeValue
ThUS$		Release
Date
SUPERINTENDENCIA NACIONAL DE ADUANAS Y DE ADMINISTRACION TRIBUTARIALATAM Airlines Perú S.A.62Letter of Credit303,187 Jan 10, 2026
SÉTIMA TURMA DO TRIBUNAL REGIONAL FEDERAL DA 1ª REGIÃO - PROCEDIMENTO COMUM CÍVEL - DECEA - 0012177-54.2016.4.01.3400TAM Linhas Aereas S.A. / ABSA Aerolinhas Brasileiras S.A.1Guarantee Insurance56,079 Apr 20, 2028
UNIÃO FEDERAL - PGFNTAM Linhas Aereas S.A. / ABSA Aerolinhas Brasileiras S.A.22Guarantee Insurance179,813 May 19, 2026
TRIBUNAL DEJUSTIÇADOESTADODABAHIATAM Linhas Aereas S.A.1Guarantee Insurance5,384 Jun 27, 2029
VARA DAS EXECUÇÕES FISCAIS ESTADUAIS DE SÃO PAULO - FORO DAS EXECUÇÕES FISCAIS DE SÃO PAULOTAM Linhas Aereas S.A.1Guarantee Insurance8,489 Apr 15, 2028
AMERICAN ALTERNATIVE INS. CO. C/O ROANOKE INS. GROUP INCLATAM Airlines Group S.A.11Letter of Credit7,452 Feb 3, 2026
TRIBUNAL DE JUSTIÇA DO ESTADO DE SÃO PAULOABSA Aerolinhas Brasileiras S.A.2Guarantee Insurance6,879 Dec 31, 2999
1° VARA DE EXECUÇÕES FISCAIS E DE CRIMES CONTRA A ORDEM TRIB DA COM DE FORTALEZATAM Linhas Aereas S.A.1Guarantee Insurance3,091 Dec 31, 2999
ARQUITETURA DE PROTEÇÃO E DEFESA DO CONSUMIDOR DO ESTADO DO RJTAM Linhas Aereas S.A.1Guarantee Insurance1,469 Dec 31, 2999
AENA AEROPUERTOS S.ATAM Linhas Aereas S.A.2Guarantee Insurance2,270 Sep 10, 2026
JFK INTERNATIONAL AIR TERMINAL LLCLATAM Airlines Group S.A.2Letter of Credit3,600 Jan 27, 2026
METROPOLITAN DADE CONTY (MIAMI - DADE AVIATION DEPARTMENT)LATAM Airlines Group S.A.5Letter of Credit932 Mar 13, 2026
SOCIEDAD CONCESIONARIA NUEVO PUDAHUEL S.A.LATAM Airlines Group S.A.16Letter of Credit2,067 Mar 31, 2026
FUNDACAO DE PROTECAO E DEFESA DO CONSUMIDOR PROCONTAM Linhas Aereas S.A.11Guarantee Insurance20,669 Feb 10, 2026
BOND SAFEGUARD INSURANCE COMPANYTAM Linhas Aereas S.A.2Guarantee Insurance5,400 Jul 20, 2026
LIMA AIRPORT PARTNERS S.R.L.LATAM Airlines Group S.A.34Letter of Credit8,102 Feb 12, 2026

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Creditor GuaranteeDebtorQuantityTypeValue
ThUS$		Release
Date
JUIZO DE DIREITO DA VARA DA FAZENDA PUBLICA ESTADUAL DA COMARCA DA CAPITAL DO ESTADO DO RIO DE JANEIROTAM Linhas Aereas S.A.1Guarantee Insurance1,280 Dec 31, 2999
MUNICIPIO DO RIO DE JANEIROTAM Linhas Aereas S.A.2Guarantee Insurance1,685 Oct 31, 2029
AENA AEROPUERTOS S.ALATAM Airlines Group S.A.3Letter of Credit2,835 Nov 15, 2026
SERVICIO NACIONAL DE ADUANA DEL ECUADORLATAM Airlines Group S.A.1Letter of Credit1,350 Aug 5, 2026
AEROPUERTOS ANDINOS DEL PERU S.A.LATAM Airlines Perú S.A.6Letter of Credit1,101 Jan 31, 2026
DISTRITO FEDERALTAM Linhas Aereas S.A.1Guarantee Insurance1,308 Jul 1, 2030
JFK International Air Terminal LLCTAM Linhas Aereas S.A.1Guarantee Insurance1,300 Jun 4, 2026
ANA AEROPORTOS PORTUGALTAM Linhas Aereas S.A.1Guarantee Insurance1,139 Oct 31, 2026
CORPAC S.A.LATAM Airlines Perú S.A.25Letter of Credit5,788 Jan 31, 2026
SYDNEY AIRPORT CORPORATION LIMITEDLATAM Airlines Group S.A.1Letter of Credit1,120 Jul 16, 2026
CITY OF LOS ANGELES, DEPARTMENT OF AIRPORTSLATAM Airlines Group S.A.7Letter of Credit1,616 Feb 6, 2026
Total635,405

Letters of credit related to right-of-use assets are included in Note 16 Property, plant and equipment letter (d) Additional information Property, plant and equipment, in numeral (i) Property, plant and equipment delivered as collateral.

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NOTE 32 - TRANSACTIONS WITH RELATED PARTIES

(a)     Details of transactions with related parties as follows:
Tax No.Related partyNature of relationship with related partiesCountry
of origin		Nature of related parties transactionsCurrencyFor the year ended December 31,
20252024
ThUS$ ThUS$
96.810.370-9Inversiones Costa Verde S.A.Related directorChileTickets salesCLP30142
76.115.378-1Costa Verde Portfolio S.A.Related directorChileTickets salesCLP121—
76.183.853-9Costa Verde Inversiones Financieras S.A.Related directorChileTickets salesCLP—16
ForeignInversora Aeronáutica Argentina S.A.Related directorArgentinaReal estate leases receivedARS—(5)
ForeignQatar AirwaysIndirect shareholderQatarInterlineal received serviceUS$(28,560)(22,863)
Interlineal provided serviceUS$27,86732,092
Services received of handlingUS$(225)(88)
Services provided of handlingUS$2,4801,058
Services received milesUS$(2,150)(10,103)
Services provided milesUS$3,6792,783
Services provided maintenanceBRL681776
Services received VIP loungeUS$(4)—
Services provided VIP loungeUS$622—
ForeignDelta Air Lines, Inc.ShareholderU.S.AInterlineal received serviceUS$(342,254)(319,499)
Interlineal provided serviceUS$211,082213,153
Services received milesUS$(12,858)(15,795)
Services provided milesUS$9,5678,335
Joint ventureUS$(10,000)(10,000)
Services received of handlingUS$(21,679)(7,058)
Services provided maintenanceUS$1,799995
Services provided maintenanceBRL914—
Real estates leases providedUS$163155
Services received VIP loungeUS$(100)—
Services provided VIP loungeUS$2,0151,756
Services received consulting and professionalUS$(1,890)(22)
Tickets salesUS$42 —
The balances corresponding to Accounts receivable and accounts payable to related entities are disclosed in Note 9.

Transactions between related parties have been carried out under market conditions and duly informed.



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(b)     Board members, Chief Executives and Senior Directors compensation

The Company has defined for these purposes that key management personnel are the executives who define the Company’s policies and macro guidelines and who directly affect the results of the business, considering the levels of Vice-Presidents Chief Executives Senior Directors and Board members.
For the year ended December 31,
20252024
ThUS$ThUS$
Remuneration12,751 12,354 
Board compensation1,306 1,786 
Non-monetary benefits99 423 
Short-term benefits55,362 17,483 
Termination benefits (*)— 1,341 
Total69,518 33,387 

In accordance with current legislation, the Ordinary Shareholders’ Meeting held on March 24, 2025, determined the amount of the annual remuneration for the Board for the period from that date until the next Ordinary Shareholders’ Meeting scheduled to take place within the first quarter of 2025. In this context, in addition to the base remuneration, an additional remuneration was approved for each Board member, with an incremental amount based on the following criteria:

(a)For the period between March 25, 2025 and the date of the next ordinary shareholders' meeting to be held within the first four months of 2026, each Director will be entitled to receive an additional amount to the base remuneration, equivalent to 9,226,234 units of remuneration or “URAs.”

(b)Likewise, each Director who becomes part of the Board Committee will also receive, as additional compensation, a variable amount equivalent to an additional one-third (1/3) calculated on the incremental remuneration that the respective Committee member is entitled to as a Director, in accordance with the resolution of the Ordinary Shareholders’ Meeting.

For payment purposes, the value of each URA will be considered as referentially equivalent to the price of a company’s share. Consequently, URAs will be paid at the weighted average price of stock market transactions of the company’s shares during the 10 business days preceding the effective date (“Weighted Average Price”). For the calculation of the Weighted Average Price, transactions on national stock exchanges, as well as in those nationally recognized foreign stock exchanges where LATAM American Depositary Shares are listed.



The amounts paid as of December 31, 2025 and 2024 for this concept, in accordance with the above, are:


Paid during the period ended at December 31,
20252024
ThUS$ThUS$
URAs Directors345 763 
URAs Board Committee38 85 
Total383 848 


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NOTE 33 - SHARE-BASED PAYMENTS


(a) CIP (Corporate Incentive Plan)

As indicated in Note 22, in the context of the exit from Chapter 11 Proceedings, the Company implemented a talent retention program for the LATAM Group companies employees, which is divided into three categories. The first one (i.e., Non-Executive Employees) simply contemplates guaranteed payments in cash to the respective employees on certain dates depending on the country where the employee is hired. On the other hand, the remaining two categories (i.e., Non-GEM Executives and GEM Executives) contemplated the granting of synthetic units of remuneration (the "Units") that, by reference, are considered as equivalent to the price of one share of LATAM Airlines Group S.A. and consequently, in case they become effective, grant the worker the right to receive the payment in cash that results from multiplying the number of Units that are pay for the value per share of LATAM Airlines Group S.A. that must be considered in accordance with the CIP.

Below are more details of these two categories.

Non-GEM Executives

The first subprogram applies to senior executives not part of the GEM (Global Executive Meeting - Senior Managers, Managers, Deputy Managers). In this context, this program contemplates two different bonuses: (1) a retention bonus, consisting of the amount in money resulting from Units that are assigned to the respective employee and these Units being paid 20% on month 15 and 80% at month 24, in each case, counted from Exit date from the Chapter 11 Procedure (i.e., November 3, 2022) (the "Exit Date"). This is consequently, a guaranteed payment for these employees; and (2) a bonus associated to the performance defined on based on the compliance of certain financial indicators of LATAM Airlines Group S.A. and its subsidiaries, which is reflected in Note 19(b), becoming effective 20% at month 15 and 80% at month 24, in each case, from the Exit Date. Consequently, this is a temporary payment that is only made if these indicators are met.


GEM Executives

Applies to senior executives of the LATAM Group companies who are part of the GEM (CEO and employees whose job description is "vice presidents" or "directors"). Employees that participating in this program are eligible to receive cash payments for Units. These Units are as follows:

1. "RSUs" (Retention Shares Units): That is, Units associated with the employee's permanence in the Company, and consequently, are associated with the passage of time. In its totality, the CIP contemplates up to 3,107,603,293 RSUs which are made effective by partialities in the terms indicated below.

As a general rule, RSUs will be eligible to become effective at the rate of one third on each of the following dates: month 24, month 36 and month 42, in each case, counted from the Exit Date. The mentioned above, subject to the occurrence of a trigger event related to the volume of transactions of securities issued by LATAM Airlines Group S.A. in the terms contemplated in the CIP (hereinafter, a "VTE" – Volume Triggering Event). The number of RSUs actually paid will be determined based on the net resources accumulated as a result of a VTE on the respective determination date (hereinafter, this adjustment will be referred to as the "Pro Rata Factor").

Notwithstanding the mentioned above, the CIP also contemplates a "Minimum Guaranteed Vesting" according to which, the percentage of RSUs indicated below will be effective on each date indicated, even if a VTE has not occurred. The foregoing, net of the RSUs that may eventually have become effective previously.


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Minimum Guaranteed Vesting of RSUs
Percentage of Units that become effective
Month 30 from Exit Date20%
Month 42 from Exit Date30%
Month 60 from Exit Date50%

2. "PSUs" (Performance Shares Units): That is, Units associated with both the employee's permanence in one of the LATAM Group companies and the performance of LATAM Airlines Group S.A. measured according to the share price. Consequently, like RSUs, these Units are associated with the passage of time. However, PSUs also consider the market value of the share of LATAM Airlines Group S.A. considering a liquid market. However, as long as there is no such liquid market, the share price will be determined on the basis of representative transactions. In its totality, the CIP contemplates up to 4,251,780,158 PSUs which are made effective by partialities in the terms indicated below.

As a general rule, PSUs will be eligible to become effective at the rate of one third on each of the following dates: month 24, month 36 and month 42, in each case, counted from the Exit Date. The foregoing, subject to (i) a VTE having occurred; and (ii) that the quotient (hereinafter, the "Net Price/ERO (Equity Rights offering) Quotient") between the net price of sales originating in a VTE, divided by the price of share at which the shares issued were placed under the capital increase agreed at the extraordinary shareholders' meeting of LATAM Airlines Group S.A. dated July 5, 2022 (that is, US$0.01083865799), is greater than 150%. The number of PSUs that actually becomes effective will be determined according to the Factor Pro Rata and the Quotient Net Price/ERO Price).

From the above it flows that the PSUs constitute an eventual and not guaranteed payment.

During the first quarter of 2025, GEM executives contracts were amended incorporating an alternative modality for a portion of the PSUs assigned to the employee to become effective. More specifically, up to 50% of the PSUs assigned to the respective employee will be eligible to become effective to the extent that, on or before the 60th month from the date of exit from the Chapter 11 Procedure, the Return per Share, expressed as a percentage of the price per share at which the shares issued by virtue of the capital increase agreed upon at the Extraordinary Shareholders' Meeting of LATAM Airlines Group S.A. on July 5, 2022 (i.e., US$0.01083865799), exceeds certain thresholds. For these purposes, the concept of "Return per Share" considers the average price of stock market transactions in shares of LATAM Airlines Group S.A. within 60 business days prior to the determination date, plus any dividends and distributions that have been paid to shareholders with respect to their shares in LATAM Airlines Group S.A. after the exit from the Chapter 11 Procedure.

In addition, some of the GEM Executives will also be entitled to receive a fixed and guaranteed payment in cash ("MPP" – Management Protection Plan) on certain dates under the Plan, at the rate of 33% in the month 18, 34% in the month 24 and 33% in the 30th month, all from the Exit Date. On the other hand, those employees who are eligible for this MPP will also be eligible for a limited number of additional RSUs ("MPP Based RSUs"). In its totality, the CIP includes 1,438,926,658 MPP based RSUs. As a general rule, MPP Based RSUs will be eligible to become effective on the same terms and conditions as RSUs; however, that they will be eligible to become effective at a rate of one third on each of the following dates: month 18, month 24 and month 30, in each case, from the Exit Date. The valuation of these Units will be equivalent to the value of the Company's share less the ERO Price at the time they become effective.

In all cases, the respective employees must have remained as such in one of the LATAM Group companies at the corresponding accrual date to qualify for these benefits.

Given the characteristics of this program, it has been recorded in accordance with the provisions of IFRS 2 "Share-based payments" and has been considered as a "cash settlement award" and, therefore, recorded at fair value as a liability that is part of the items Trade and other accounts payables and Provisions for employee benefits, non-current, which is updated at the closing date of each financial statement with effect on profit or

127
loss for the period and classified in the line "Administrative expenses" of the Consolidated Statement of Income by function.

The fair value has been determined on the basis of the current share price and the best estimate of the future value of the Company's share, multiplied by the number of underlying units granted. This estimate was made based on the Company's Business Plan and its main indicators such as EBITDAR, adjusted net debt.

The movement of units as of January 01, 2024 and December 31, 2025 , is as follows:


Opening balance as of 01.01.2024Granted during the periodExercised during the periodForfeited during the periodClosing balance as of December 31, 2024Vested
RSU - Retention2,986,456,933 35,468,268 (692,032,415)(91,282,871)2,238,609,915 — 
PSU - Performance4,009,588,067 42,034,943 — (89,352,930)3,962,270,080 — 
MPP BASED RSU - Protection1,246,879,413 — — (60,388,760)1,186,490,653 — 
Total8,242,924,413 77,503,211 (692,032,415)(241,024,561)7,387,370,648 — 



Opening balance as of 01.01.2025Granted during the periodExercised during the periodForfeited during the periodClosing balance as of December 31, 2025Vested
RSU - Retention2,238,609,915 79,870,832 (916,489,597)— 1,401,991,150 — 
PSU - Performance3,962,270,080 162,161,992 (644,513,471)— 3,479,918,601 — 
MPP BASED RSU - Protection1,186,490,653 — (593,245,326)— 593,245,327 — 
Total7,387,370,648 242,032,824 (2,154,248,394)— 5,475,155,078 — 

















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NOTE 34 - STATEMENT OF CASH FLOWS


(a)The Company has carried out the following transactions with non-monetary impact transactions mainly related to financial lease and lease liabilities, which are described in Note 19 Other financial liabilities.

(b)Other inflows (outflows) of cash:
For the year ended December 31,
20252024
ThUS$ ThUS$
Bank commissions, taxes paid and other(7,129)(3,355)
Taxes on financial transactions(12,136)(10,563)
Guarantees1,371 73,074 
Fuel derivatives and currency 6,268 31,853 
Judicial deposits7,761 54,356 
Derivative margin guarantees466 10,902 
Payment for derivatives premiums(44,485)(43,902)
Insurance recovery— 9,788 
Total Other inflows (outflows) Operation activities(47,884)122,153 
Recoveries of credits and Guarantee deposit received from the sale of assets62,018 34,469 
Total Other inflows (outflows) Investment activities62,018 34,469 
Interest rate derivatives2,204 1,456 
Costs associated with financing(85,855)— 
Others recovery— 510 
Expenses for shares buybacks(587)— 
Withholding tax(7,287)(11,689)
Debt-related legal advice— (64,146)
Total Other inflows (outflows) Financing activities(91,525)(73,869)




(c) Dividends:

For the year ended December 31,
20252024
ThUS$ ThUS$
Latam Airlines Group S.A.(604,877)(174,549)
Transportes Aéreos del Mercosur S.A. (*)(304)(289)
Total dividends paid(605,181)(174,838)
(*) Dividends paid to minority shareholders

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(d)Reconciliation of liabilities arising from financing activities:

Cash flows Non cash-Flow Movements
Obligations with financial institutionsAs of
December 31, 2024		ObtainmentPayment Interest
accrued and
others		ReclassificationsAs of
December 31, 2025
Capital (*)Capital (**)Interests
ThUS$ThUS$ThUS$ ThUS$ ThUS$ThUS$ ThUS$
Guaranteed obligations374,043 319,500 (37,648)(29,158)30,898 — 657,635 
Other guaranteed obligations374,751 239,520 (43,681)(39,685)40,294 — 571,199 
Obligation with the public2,239,303 790,120 (700,000)(181,554)232,450 (2,541)2,377,778 
Financial leases799,773 — (241,743)(39,181)158,667 11,537 689,053 
Lease liability3,362,581 — (463,358)(311,162)1,213,962 (9,162)3,792,861 
Total Obligations with financial institutions7,150,451 1,349,140 (1,486,430)(600,740)1,676,271 (166)8,088,526 


Cash flowsNon cash-Flow Movements
Obligations with financial institutionsAs of
December 31, 2023		ObtainmentPaymentInterest
accrued and
 others 		As of
December 31, 2024
Capital (*)Capital (**)Interests Other flow
ThUS$ThUS$ThUS$ ThUS$ ThUS$ThUS$ ThUS$
Bank loans1,029,434 — (1,089,000)(167,026)— 226,592 — 
Guaranteed obligations303,922 99,000 (28,938)(19,908)— 19,967 374,043 
Other guaranteed obligations430,350 272,112 (330,870)(39,066)— 42,225 374,751 
Obligation with the public1,302,838 1,378,948 (450,000)(156,862)(10,870)175,249 2,239,303 
Financial leases901,546 — (105,734)(46,596)— 50,557 799,773 
Other loans104 — — — — (104)— 
Lease liability2,967,994 — (344,038)(288,176)— 1,026,801 3,362,581 
Total Obligations with financial institutions6,936,188 1,750,060 (2,348,580)(717,634)(10,870)1,541,287 7,150,451 

(*) During the year 2025 the Company obtained ThUS$1,349,140 from long-term loans. For the year 2024, the Company obtained ThUS$1,750,060 amounts from long-term loans.

As of December 31, 2025, this financing is net of fee payments of ThUS$10,380. (MUS$ 24.952 as of December 31, 2024). See note 18, numbers 3 and 4.

(**) As of December 31, 2025, under the cash flows from financing activities are presented loan repayments of ThUS$1,023,072 and payments of lease liabilities of ThUS$463,358 (ThUS$2,004,542 and ThUS$344,038, respectively as of December 31, 2024).














130

Below are the details obtained (payments) of flows related to financing:

For the year ended
December 31,
20252024
Capital
raising		Payments Capital
raising		Payments
Flow ofCapital Interest Capital Interest
ThUS$ThUS$ ThUS$ ThUS$ThUS$ ThUS$
Aircraft financing559,020 (323,072)(77,079)99,000 (198,774)(69,249)
Lease liability— (463,358)(311,162)— (344,038)(288,176)
Non-aircraft financing790,120 (700,000)(212,499)1,651,060 (1,805,768)(360,209)
Total obligations with Financial institutions1,349,140 (1,486,430)(600,740)1,750,060 (2,348,580)(717,634)


(e)Advances of aircraft and engines

Corresponds to the cash flows associated with aircraft and engines purchases, which are included in the statement of consolidated cash flows, within investing activities.

For the year ended December 31,
20252024
ThUS$ ThUS$
Increases (payments)(252,665)(219,010)
Recoveries87,442 34,379 
Total cash flows(165,223)(184,631)



(f)Additions of property, plant and equipment and Intangibles

For the year ended December 31,
20252024
ThUS$ThUS$
Net cash flows from
Purchases of property, plant and equipment1,775,818 1,325,463 
Additions associated with maintenance449,502 358,475 
Other additions1,326,316 966,988 
Purchases of intangible assets104,483 94,412 
Other additions104,483 94,412 









131

(g) The net effect of the application of hyperinflation in the consolidated cash flow statement corresponds to:
For the year ended December 31,
20252024
ThUS$ThUS$
Net cash flows from (used in) operating activities518 6,256 
Net cash flows from (used in) investment activities20 819 
Effects of variation in the exchange rate on cash and cash equivalents(538)(7,075)
Net increase (decrease) in cash and cash equivalents— — 

(h) Payments of leased maintenance
Payments to suppliers for the supply of goods and services include the value paid associated with leased maintenance capitalizations for ThUS$185,005 (ThUS$246,429 as of December 31, 2024).




NOTE 35 - THE ENVIRONMENT


LATAM Airlines Group S.A. conducts its operations within a regulatory environment that incorporates relevant environmental requirements, particularly those related to fuel consumption, atmospheric emissions, waste management, and compliance with applicable environmental regulations in the countries where it operates. The Company manages the environmental aspects of its operations on a corporate basis, in coordination with the various operational areas, focusing such actions on regulatory compliance and on the identification and management of the principal environmental risks associated with its operations.

In this context, the Group’s environmental management is structured primarily around the following areas: Environmental Management, Climate Change Management, and Circular Economy.

Environmental Management
LATAM maintains a corporate Environmental Management System (EMS) that enables the identification, assessment, and management of both the environmental regulations applicable to its operations and the relevant environmental risks. As part of this system, certain Group facilities hold recognized environmental certifications, including ISO 14001 certification at the maintenance and cargo base in Miami, United States, and the IEnvA standard (IATA Environmental Assessment) at operations in Ecuador, Peru, Colombia, Brazil, and Chile.

In March 2025, the Group obtained recertification of its Environmental Management System under the IEnvA standard for nine passenger and cargo operators in its Home Markets, expanding the scope of the certification to include the energy module for the three operators in Chile. In addition, in October 2025, the external surveillance audit of the ISO 14001 certification was conducted at the Miami base, during which the certification was maintained.

During the fourth quarter of the year, the Group continued to strengthen its EMS with respect to environmental risk prevention and control by conducting environmental emergency drills (spill response) and providing training to subsidiaries on energy management (ISO 50001) and ISO 14001.



Climate Change Management
Climate change represents a relevant risk for the airline industry, primarily due to its exposure to environmental regulations, fluctuations in fuel costs, and requirements related to the reduction of greenhouse gas emissions. The Group manages its exposure to these risks through an approach primarily focused on the reduction of Scope 1 emissions, prioritizing operational improvements, fuel efficiency, and the progressive renewal of its fleet. In

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addition, the Company incorporates the use of sustainable aviation fuels (SAF) as a direct emissions reduction tool, the use of which is subject to their availability and technical and economic feasibility.
Among the main measures implemented are operational efficiency initiatives and the incorporation of next-generation aircraft, which, according to manufacturers’ information, present lower fuel consumption compared to previous aircraft models.

Furthermore, the Group uses emissions offsetting mechanisms as a complementary tool within its climate management approach, both under applicable regulatory schemes and voluntary programs, without replacing direct emissions reduction efforts. The use of such mechanisms is subject to market conditions and applicable regulatory frameworks and does not give rise to significant financial obligations at the end of the reporting period.

During 2025, LATAM Group offset 87,168 tons of CO₂ through its portfolio of voluntary initiatives, which included Cobus, Extra Crew, Avión Solidario, and events, as well as programs linked to corporate clients, including charter operations, the 1+1 Program for Cargo and Corporate clients, and offsetting carried out by individual customers (B2C).

Additionally, during the same year, through the non-accrual mechanism of the carbon tax in Colombia, 218,148 tCO₂ were offset under the mandatory component and 2,847 tCO₂ through voluntary offsetting in the country.
In total, the Group offset 308,163 tCO₂ in 2025, considering both voluntary initiatives and the mandatory scheme in Colombia.

Circular Economy
LATAM develops initiatives aimed at the reduction, reuse, and recovery of waste generated in its operations, in line with environmental regulatory compliance, operational efficiency, and its strategy to gradually integrate the concept of circular economy into its operations.

At year-end, the Group had eliminated 97% of single-use plastics from its operations, with the remaining percentage maintained due to legal, sanitary, or operational restrictions. In addition, waste management systems were strengthened in certain relevant operations.

During 2025, LATAM Group continued to advance its circular economy roadmap by further strengthening waste management systems and expanding initiatives aimed at diverting waste from landfills.
As of November 2025, 61% of managed waste had been diverted, equivalent to 2,854 tons, through reduction, reuse, recycling, and composting actions, out of a total of 4,675 tons of waste managed within the Group’s waste management system.

These advances reflect the consolidation of learnings and the scaling up of good practices implemented in previous years, as well as collaborative work with suppliers and airport concessionaires, establishing operational and technical foundations to continue progressively increasing the percentage of waste diverted in line with the objective defined for 2027.



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NOTE 36 - EVENTS SUBSEQUENT TO THE DATE OF THE FINANCIAL STATEMENTS



After December 31, 2025 and up to the date of issuance of these financial statements, there is no knowledge of other events of a financial or other nature that significantly affect the balances or their interpretation.

The consolidated financial statements of LATAM Airlines Group S.A. and Subsidiaries as of December 31, 2025, have been approved in the Extraordinary Session of the Board of Directors on February 3, 2026.


Source: View Original Filing on SEC EDGAR

FAQ

How did Airlines Group S.A. (LTM) perform financially in 2025?

Airlines Group S.A. posted net income of ThUS$1,463,561 in 2025, up from ThUS$977,445 in 2024. Revenue increased to ThUS$14,265,056, and operating income reached ThUS$2,335,538, reflecting improved margins and stronger overall profitability.

What happened to Airlines Group S.A. (LTM) revenue and margins in 2025?

Revenue for Airlines Group S.A. rose to ThUS$14,265,056 in 2025 from ThUS$12,833,043 in 2024. Gross margin increased to ThUS$4,160,172, and income from operational activities advanced to ThUS$2,335,538, indicating healthier operating performance.

How strong was Airlines Group S.A. (LTM) cash flow in 2025?

Airlines Group S.A. generated operating cash flow of ThUS$3,737,096 in 2025, compared with ThUS$3,106,327 in 2024. After investing and financing cash flows, cash and cash equivalents increased to ThUS$2,150,113 by year-end, supporting liquidity and ongoing investments.

How did Airlines Group S.A. (LTM) balance sheet change in 2025?

Total assets rose to ThUS$17,640,891 and total liabilities to ThUS$16,303,689 in 2025. Equity increased significantly to ThUS$1,337,202 from ThUS$711,329, reflecting higher retained earnings and a capital reduction following cancellation of a large block of treasury shares.

What were Airlines Group S.A. (LTM) earnings per share in 2025?

In 2025, Airlines Group S.A. reported basic and diluted earnings per share of US$0.002477, up from US$0.001616 in 2024. The improvement aligns with higher net income attributable to owners of the parent company of ThUS$1,459,984.

Did Airlines Group S.A. (LTM) return capital to shareholders in 2025?

Yes. Airlines Group S.A. paid dividends of ThUS$437,995 and executed share repurchases leading to early cancellation of 30,221,893,878 treasury shares. This reduced share capital by about US$585,424,212, forming part of a broader capital optimization effort.