LATAM Airlines Group (NYSE: LTM) lifts 2026 EBITDA outlook to US$4.1–4.4 billion
Rhea-AI Filing Summary
LATAM Airlines Group reported 2Q26 revenue of US$4,183 million, up 27.6% year over year, with an adjusted operating margin of 5.4% and net income attributable to shareholders of US$125 million, as strong passenger and cargo demand offset a sharp rise in fuel costs.
Passenger revenue grew 27.9% to US$3,613 million and cargo revenue 21.8% to US$510 million, while premium cabins reached 29% of passenger revenue and loyalty members 56 million. Liquidity totaled US$4.23 billion, net debt was US$6.37 billion (1.5x net leverage), full‑year adjusted EBITDA guidance was raised to US$4.1–4.4 billion, and shareholders approved a buyback of up to 5% of shares over five years.
Positive
- Total revenues rose 27.6% to US$4,183 million in 2Q26, with passenger revenue up 27.9% and cargo revenue up 21.8%, supported by a 17.5% increase in passenger RASK and a 17.8% increase in cargo yield.
- LATAM increased its 2026 adjusted EBITDA guidance from US$3.8–4.2 billion to US$4.1–4.4 billion, indicating confidence in earnings despite fuel cost volatility.
- Liquidity reached US$4.23 billion (26.2% of LTM revenues) and net debt/adjusted EBITDA stayed at 1.5x, providing solid financial flexibility while the Board received authority for a share repurchase of up to 5% of shares.
Negative
- Profitability compressed materially: adjusted operating income fell 46.3% to US$227 million, adjusted EBITDA declined 16.1% to US$713 million, and net income attributable to shareholders dropped 48.2% to US$125 million.
- The adjusted EBITDA margin decreased from 25.9% to 17.0% and net margin from 7.4% to 3.0%, driven largely by aircraft fuel expenses rising 93.1%.
- The average all‑in jet fuel price jumped 81.3% to US$194.5 per barrel, pushing CASK (ex‑fuel) higher and pressuring margins despite revenue growth.
Filing Explained
The five-year buyback is authorized, while first-half disclosures show no purchases and the fleet plan adds continuing aircraft commitments.
Form 6-K is an interim report used by a foreign private issuer to furnish material information published in its home market. LATAM reports that shareholders approved authority on
The approval creates repurchase capacity rather than documenting a completed reduction in shares: the first-half cash-flow statement reports no payments to acquire or redeem the company's shares. The filing does not state that the newly approved authority has been exercised.
The company reports contracted fuel hedges covering
LATAM also discloses fleet commitments with Airbus, Boeing, Embraer, and lessors, expects delivery of 28 aircraft during the remainder of 2026, and projects a total fleet of 410 aircraft at year-end. These are planned fleet additions and disclosed commitments, not a quantified purchase obligation in this filing. The company scheduled a results conference call for
Key Figures
Total Revenues: US$4,183 million
Adjusted Operating Margin: 5.4%
Net Income attributable to owners: US$125 million
+5 more
8 metrics
Total Revenues
US$4,183 million
For the second quarter ended June 30, 2026; up 27.6% vs 2Q25
Adjusted Operating Margin
5.4%
2Q26 adjusted operating margin; down from 12.9% in 2Q25
Net Income attributable to owners
US$125 million
Net income attributable to owners of the parent company in 2Q26; down 48.2% year over year
Adjusted EBITDA
US$713,025 thousand
2Q26 adjusted EBITDA; 16.1% lower than 2Q25
2026 Adjusted EBITDA Guidance
US$4.1–4.4 billion
Updated full‑year 2026 adjusted EBITDA guidance range, raised from US$3.8–4.2 billion
Liquidity
US$4,225,857 thousand
Cash, cash equivalents and undrawn RCF as of June 30, 2026; 26.2% of LTM revenues
Net Debt
US$6,374,391 thousand
Total net debt as of June 30, 2026; net debt/adjusted EBITDA (LTM) 1.5x
Average Jet Fuel Price (with hedge)
US$194.5 per barrel
2Q26 all‑in jet fuel price including hedges; up 81.3% vs 2Q25
Key Terms
Adjusted EBITDA, Adjusted Operating Margin, Adjusted Passenger CASK ex-fuel, load factor, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA (US$ million) | 713 | 850 | (16.1%)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted Operating Margin financial
"Adjusted Operating Margin | 5.4% | 12.9% | -7.5pp"
Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.
Adjusted Passenger CASK ex-fuel financial
"Adjusted Passenger CASK ex-fuel (US$ cents) | 4.5 | 4.3 | 5.6%"
load factor financial
"LATAM group achieved a healthy consolidated load factor of 81.8%"
Load factor is a measure of how efficiently a transportation service, such as a plane, train, or bus, fills its available seats or space over a period of time. It is calculated by dividing the actual number of passengers or usage by the total available capacity. A higher load factor indicates better utilization, which can lead to more profitable operations and is important for investors assessing the efficiency and profitability of transportation companies.
collar structures financial
"Hedges contracted through collar structures 1 | 37% | 27% | 12% | 7%"
Adjusted Levered FCF financial
"Adj. Levered FCF | 222,923 | 394,846 | (16.1%)"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did LATAM Airlines (LTM) perform financially in Q2 2026?
LATAM generated US$4,183 million in total revenues in Q2 2026, up 27.6% year over year, with an adjusted operating margin of 5.4% and net income attributable to shareholders of US$125 million, despite substantial jet fuel cost increases.
What drove revenue growth for LATAM Airlines (LTM) in Q2 2026?
Revenue growth was led by passenger revenues of US$3,613 million, up 27.9%, and cargo revenues of US$510 million, up 21.8%. Passenger RASK increased 17.5% and cargo yield 17.8%, helped by strong premium demand and a resilient freighter and belly network.
How did higher fuel prices affect LATAM Airlines (LTM) in Q2 2026?
Aircraft fuel expenses rose 93.1%, as the average all‑in jet fuel price increased 81.3% to US$194.5 per barrel. This significantly compressed margins, lowering the adjusted EBITDA margin to 17.0% even though revenues and traffic grew.
What is LATAM Airlines’ (LTM) updated 2026 adjusted EBITDA guidance?
LATAM raised its 2026 adjusted EBITDA guidance range to US$4.1–4.4 billion from US$3.8–4.2 billion. Management cited better visibility, strong demand, and the resilience of its diversified passenger, cargo and loyalty ecosystem despite ongoing fuel price volatility.
What is LATAM Airlines’ (LTM) liquidity and leverage position as of Q2 2026?
LATAM reported US$2.65 billion in cash and cash equivalents plus US$1.58 billion in undrawn revolving credit facilities, totaling liquidity of US$4.23 billion. Net debt was US$6.37 billion, with net debt/adjusted EBITDA at 1.5x.
How is LATAM Airlines (LTM) managing fuel and FX risk going into 2027?
LATAM hedged 45% of estimated 3Q26 fuel consumption and 27% for 4Q26 via collars and call options, and hedged 64% of BRL cash flow mismatch in 3Q26. These positions aim to stabilize cash flows amid fuel and exchange rate volatility.
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
August 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 | LATAM Airlines Group 2Q 2026 Results | |||||||
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: August 4, 2026 | LATAM AIRLINES GROUP S.A. | |||||||
| By: | /s/ Ricardo Bottas | |||||||
| Name: | Ricardo Bottas | |||||||
| Title: | Chief Financial Officer | |||||||
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2Q 2026 Results |  | ||||
LATAM reports a 5.4% Adj. Operating Margin, despite fuel price increase, with revenues up 28% YoY driven by a strong commercial execution
Santiago, Chile, August 4, 2026 – LATAM Airlines Group S.A. (NYSE: LTM; SSE: LTM) announced today its consolidated financial results for the second quarter ending June 30, 2026. References to "LATAM", "LATAM Airlines Group", the “Company” or the "parent company" pertain to LATAM Airlines Group S.A., and references to “LATAM group,” “we,” “us,” “our,” or the “group” refer to LATAM Airlines Group S.A. and its consolidated affiliates, both passenger and cargo affiliates. LATAM prepares its financial statements under IFRS as issued by the IASB, however, for ease of presentation and comparison, the Income Statement in this report is presented in an adapted US Format. On some occasions, adjustments to these Income Statement figures are made for Special Items. A table reconciling the figures adjusted for Special Items to their as-reported IFRS figures can be found at the end of the report. All figures in this report are expressed in U.S. dollars. Percentages and certain U.S. dollar, Chilean peso and Brazilian real amounts contained in this report have been rounded for ease of presentation. Any discrepancies in any table between totals and the sums of the amounts listed are due to rounding. The Brazilian real / U.S. dollar average exchange rate for the quarter was BRL 5.05 per USD (compared to BRL 5.66 per USD in 2Q 2025).
HIGHLIGHTS
"Second quarter results clearly demonstrate the group's structural strength and its capacity to navigate a volatile and uncertain environment," said Ricardo Bottas, CFO of LATAM Airlines Group. "LATAM group remains firmly committed to disciplined execution of its profitable growth strategy. LATAM's diversified business model — with resilient premium revenues, integrated cargo and loyalty businesses, and financial strength — provided the foundation to maintain profitability even through a seasonally weaker quarter under unprecedented fuel cost pressures."
| Key Financial Results and Indicators | 2Q26 | 2Q25 | Var. | ||||||||
| Total Revenues (US$ million) | 4,183 | 3,279 | +27.6% | ||||||||
Adjusted EBITDA (US$ million) | 713 | 850 | (16.1%) | ||||||||
Adjusted EBITDA Margin | 17.0% | 25.9% | -8.9pp | ||||||||
| Adjusted Operating Income (US$ million) | 227 | 423 | (46.3%) | ||||||||
| Adjusted Operating Margin | 5.4% | 12.9% | -7.5pp | ||||||||
| Net Income attributable to owners of the parent company (US$ million) | 125 | 242 | (48.2%) | ||||||||
| Net Income Margin | 3.0% | 7.4% | -4.4pp | ||||||||
| Diluted Earnings per ADS (US$) | 0.44 | 0.81 | (46.0%) | ||||||||
| Passenger RASK (US$ cents) | 8.1 | 6.9 | +17.5% | ||||||||
| Adjusted Passenger CASK ex-fuel (US$ cents) | 4.5 | 4.3 | +5.6% | ||||||||
| Key Financial Results and Indicators | 2Q26 | 4Q25 | Var. | ||||||||
Total liquidity1 (US$ million) | 4,226 | 3,725 | +13.4% | ||||||||
Adj. Net Leverage (Net Debt / LTM Adj. EBITDA) | 1.5x | 1.5x | 0.0x | ||||||||
1. Liquidity is defined as Cash and Cash Equivalents and undrawn, committed revolving credit facilities.
•LATAM group achieved a healthy consolidated load factor of 81.8% during the second quarter of 2026 while continuing to grow capacity year over year by 8.9%, reflecting the group's continued ability to capture passenger preference in a challenging and volatile external environment.
•The Company updated its full-year 2026 guidance, reinstating its full set of guidance parameters, including capacity and revenue projections. The updated guidance includes an increase in the adjusted EBITDA guidance range from US$3.8–4.2 billion to US$4.1–4.4 billion, despite continued elevated jet-fuel price volatility, reflecting the resilience of its business model.
•LATAM Airlines Brazil announced the initial network to be operated by its Embraer E195-E2 fleet. In the first phase, through March 2027, the E2 aircraft are expected to operate 42 domestic routes across Brazil, including eight new routes: four connecting the new destinations of Cabo Frio, Ji-Paraná, Rondonópolis and Macaé from Guarulhos, and four additional routes linking existing bases. In addition, the E2 fleet will be used to support increased frequencies or optimize fleet allocation on certain existing routes, further strengthening connectivity and profitability across the network. This deployment reinforces the LATAM Airlines Brazil's strategy to increase network capillarity in the
1
2Q 2026 Results | | ||||
domestic market. As a result, LATAM Airlines Brazil will reach 67 domestic destinations, compared to 44 in 2019, the largest network in its history.
•In an Extraordinary Shareholders’ Meeting held on August 3, 2026, shareholders approved a new share repurchase program for the acquisition of up to 5% of the Company's total subscribed and paid shares over a period of up to five years. As determined by the shareholders at the meeting, the authority to determine the launch, mechanism and conditions for the execution of such program was delegated to the Board of Directors, subject to applicable regulations.
MANAGEMENT COMMENTS - SECOND QUARTER 2026
The second quarter of 2026 demonstrated LATAM's ability to deliver a solid financial performance within the context of significant fuel cost pressures. LATAM maintained profitable operations with an adjusted operating margin of 5.4%, once again highlighting the structural strength of its business model even during one of the most challenging quarters in recent times. Behind this performance, more than 43,000 employees executed with dedication and discipline at every customer touchpoint, ensuring consistency and operational excellence across all areas of the business.
The group's diversified ecosystem —integrating passenger, cargo and loyalty businesses— proved essential to navigating the period. Passenger revenues grew 28%, reflecting the group's ability to pass through higher fuel costs to fares without compromising demand and supported by the strength of its premium revenue base. As a less price-sensitive segment, premium demand remained robust across the group's network, reaching 29% of passenger revenues during the quarter, up two percentage points from the first quarter of the year, and continuing to grow at a faster pace than the main cabin. Cargo revenues, in turn, increased 22% year-over-year, accompanied by higher tonnage transported. Its shorter sales cycle enabled fuel cost increases to be passed through more quickly and efficiently, making cargo a particularly valuable source of revenue diversification in the current environment. In addition, LATAM Pass continued its growth trajectory, reaching 56 million members during the quarter, up 9% year-over-year, while elite members grew by 26%. As a result, LATAM Pass members now account for 67% of total passenger revenues, reinforcing the importance of the loyalty program as a key pillar of LATAM group's diversified ecosystem.
Operational efficiency and flexibility were the second strength underpinning this performance. Traffic continued to grow despite the fare adjustments implemented across the network, while the LATAM affiliates carried out targeted capacity reductions. The focus was on preserving network integrity, while maintaining profitability without compromising investment in product or operational flexibility.
Financial strength remained another pillar and a strategic enabler. With liquidity at 26% of last twelve months' revenues and adjusted net leverage of 1.5x, LATAM maintained the financial flexibility to absorb the fuel price shock while continuing to invest in its business and execute its long-term growth strategy.
In addition, during the period, LATAM activated its Avión Solidario program, which leverages the group's assets to serve communities in need, to respond to the earthquake victims in Venezuela. LATAM group transported over 400 tons of emergency equipment and humanitarian aid, along with more than 170 rescue workers and medical specialists from the region.
Entering the second half of 2026, the macroeconomic context remains challenging, however, LATAM group remains positive having demonstrated during the quarter its business model absorbed an exceptional shock while continuing to deliver. Jet-fuel prices have moved to a more constructive level than assumed when the previous outlook was issued and, with the greater visibility gained over recent months, LATAM is reinstating its full set of guidance parameters. The group enters the second half confident in its ability to deliver solid results consistent with adjusted guidance, focused on the effective execution and structural strengths that continue to drive profitable growth.
MANAGEMENT DISCUSSION AND ANALYSIS OF SECOND QUARTER 2026 RESULTS
Total operating revenues amounted to US$4,183 million in the second quarter, an increase of 27.6% compared to the same period of 2025, explained by a 27.9% increase in passenger revenues and a 21.8% increase in cargo revenues. For
2
2Q 2026 Results | | ||||
the second quarter of 2026, passenger and cargo revenues represented 86.4% and 12.2% of total operating revenues, respectively.
•Passenger revenues amounted to US$3,613 million in the second quarter, increasing 27.9% versus the same period of 2025. Despite an 8.9% increase in capacity, passenger unit revenue (PRASK) reached US$8.1 cents, representing a 17.5% increase year over year, reflecting the quality of LATAM's revenues, which supported higher fares and strong yields across the network. Furthermore, the premium segment continued to outpace growth versus main cabin, now representing 29% of total passenger revenues.
•Cargo revenues amounted to US$510 million in the second quarter, increasing 21.8% versus the same period of 2025, primarily driven by a 17.8% increase in cargo yields, while cargo traffic (RTKs) increased 3.4%. The group transported 261 thousand tons, up 1.9%, reflecting continued strength in the freighter network and belly operations. During the quarter, the cargo business also delivered strong results in the Mother's Day season, transporting over 24 thousand tons of flowers from South America to key international markets.
•Other income amounted to US$59 million in the second quarter, up 63.9%, driven mostly by an increase in the LATAM Travel business and higher revenues from non-airline products within the LATAM Pass business.
Total adjusted operating expenses reached US$3,956 million in the second quarter of 2026, up 38.5% versus 2Q25 primarily reflecting higher jet fuel costs during the quarter, together with increased costs associated with an 8.9% capacity expansion to support the group's continued growth. Adjusted passenger CASK ex-fuel rose 5.6% to US$4.5 cents in the quarter, with local currency appreciation contributing approximately US$0.2 cents to the increase. The group maintained strong cost discipline while investing in commercial and operational capabilities to support sustained growth.
The changes in adjusted operating expenses during the quarter were mainly explained by:
•Wages and benefits rose 25.0% year-over-year, driven by a 9.3% increase in the average workforce, in support of the group's expansion of operations, and the appreciation of the Brazilian real and Chilean peso against the U.S. dollar.
•Aircraft fuel costs increased 93.1% versus the same period of 2025, largely driven by higher jet fuel prices triggered by geopolitical tensions in the Middle East. The average all-in jet fuel price (including hedges) increased 81.3% to US$194.5 per barrel, while fuel consumption increased 6.8% year over year.
•Commissions to agents increased 38.6% compared to 2Q25, reflecting resilient passenger demand with passenger revenues growing 27.9% and PRASK expanding 17.5%.
•Depreciation and amortization increased 13.8% versus 2Q25, primarily due to a higher average number of aircraft in the fleet. During the second quarter of 2026, LATAM group operated an average of 379 aircraft, up from 355 aircraft in the same period last year. The increase also reflects the incorporation of newer and higher-value aircraft as part of the fleet renewal strategy.
•Other rental and landing fees increased 4.8% year-over-year, impacted by higher operations and the appreciation of local currencies.
•Passenger services expenses rose 28.3% versus the same period of 2025, driven by growth in international passenger traffic and a growing premium traveler segment.
•Maintenance expenses totaled US$221 million, corresponding to a 24.2% increase versus 2Q25, mainly driven by increased operational activity and fleet expansion.
•Other operating expenses decreased 1.5% compared to 2Q25, and amounted to US$361 million.
•Other gains and losses totaled an US$8 million loss for the second quarter, primarily explained by labor contingencies in Argentina.
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2Q 2026 Results | | ||||
Non-operating results
•Interest income rose to US$40 million in 2Q26 from US$27 million in 2Q25, driven by a higher average cash balance than the prior year.
•Interest expense increased 5.9% versus 2Q25, to US$164 million. This was mainly driven by the financing of recently delivered aircraft as a part of LATAM group's ongoing fleet expansion.
•Foreign exchange gains and losses amounted to US$33 million in losses in the second quarter of 2026, primarily driven by the appreciation of local currencies compared to March 2026.
•Result of indexation units totaled US$0.64 million in the quarter.
Net income attributable to the owners of the parent company during the quarter amounted to US$125 million, a decrease of 48.2% year-over-year. Net income attributable to owners of the parent company serves as the basis for calculating dividend distributions.
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2Q 2026 Results | | ||||
LIQUIDITY AND FINANCING
In the first half of the year, LATAM Airlines Group cash position increased by US$501 million. LATAM ended the period with cash and cash equivalents of US$2,651 million (+23.3% vs December 31, 2025). Additionally, LATAM has US$1,575 million in available and fully undrawn revolving credit facilities (“RCF”). Liquidity as a percentage of revenues of last twelve months stood at 26.2%.
At the end of 2Q 2026, LATAM had a financial debt of US$4.8 billion and lease liabilities of US$4.2 billion, resulting in a total accounting debt of US$9.0 billion and net debt of US$6.4 billion. Accordingly, LATAM's adjusted net leverage stood at 1.5x, same as compared to December 31, 2025.
| Debt Composition | Nominal Debt (million) | Accounting Debt (million) | Interest Rate | Maturity | ||||||||||
| 2030 Senior Secured Notes | US$1,400 | US$1,401 | 7.875% | 2030 | ||||||||||
| 2031 Senior Secured Notes | US$800 | US$816 | 7.625% | 2031 | ||||||||||
| Spare Engine Facility | US$275 | US$276 | 5.71% | 2028 | ||||||||||
| UF Bond | US$166 | US$169 | UF + 2.0% | 2042 | ||||||||||
Pre-Delivery Payments Financing | US$168 | US$168 | 5.62% | 2028 | ||||||||||
| Fleet Financial Debt | US$1,972 | US$1,972 | 5.30% | — | ||||||||||
| Total Financial Debt | US$4,782 | US$4,802 | 6.44% | — | ||||||||||
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2Q 2026 Results | | ||||
MARKET RISKS MANAGEMENT
Fuel price risk
LATAM’s fuel hedging policy has the main objective of protecting against medium-term liquidity risk from fuel price increases, while benefiting from fuel price reductions. It seeks to provide stability amid normalized volatility of jet fuel prices. Accordingly, LATAM hedges a portion of its estimated fuel consumption with a strategy based on the projected booking curve and pass-through capacity, managing this exposure over the next 12 months. LATAM hedges on jet fuel directly, via US Gulf Coast 54, generally utilizing asymmetric hedge instruments (for example, capped collars) that provide protection within a limited range against higher prices, while allowing participation from declining fuel prices. During the first half of 2026, LATAM recognized gains of US$16.2 million for fuel hedging net of premiums (vs losses for US$18.5 million in 1H25).
Given the context of abnormally elevated jet fuel prices and seeking additional protection from further elevated fuel prices, LATAM supplemented its hedge positions with additional short-term instruments, through call options that provide unlimited protection for scenarios of significantly elevated prices and additional shocks. To date, the Company has not contracted new call options and has continued to add coverage through collars.
Hedge positions per quarter for the next 12 months, as of July 31, 2026, are shown in the table below:
Fuel hedging | 3Q26 | 4Q26 | 1Q27 | 2Q27 | ||||||||||
Hedges as percentage of estimated fuel consumption | ||||||||||||||
Hedges contracted through collar structures1 | 37% | 27% | 12% | 7% | ||||||||||
Hedges contracted through call options2 | 8% | 0% | 0% | 0% | ||||||||||
Total estimated fuel consumption hedged | 45% | 27% | 12% | 7% | ||||||||||
1Considering the forward curve for jet fuel prices, as of July 31, 2026, all the collar contracts are "in the money". For a better understanding of the effects of jet fuel price variations on LATAM’s financial results, please refer to Note 3 of the Financial Statements or Item 11 of the annual report on form 20-F for 2024 and 2025, which include a sensitivity analysis of jet fuel price fluctuations, net of hedges.
2Considering the forward curve for jet fuel prices as of July 31, 2026, the call options contracts are "in the money".
Exchange rate risk
LATAM’s foreign exchange risk mainly comes from operations in currencies other than its functional currency, the US dollar. The largest operational cash flow exposure comes from the concentration of businesses in Brazil by LATAM Airlines Brazil, which are mostly denominated in Brazilian real. To a lesser degree, LATAM is also exposed to other currencies like the Euro, British pound, and several Latin American currencies. BRL cash flow hedge positions per quarter for the next months, as of July 31, 2026, are shown in the table below:
FX hedging (BRL) | 3Q26 | 4Q26 | 1Q27 | 2Q27 | ||||||||||
| Hedge positions | ||||||||||||||
Estimated cash flow mismatch hedged | 64% | 42% | 0% | 0% | ||||||||||
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2Q 2026 Results | | ||||
LATAM FLEET PLAN
LATAM group’s fleet consists of 302 Airbus narrow-body aircraft, 2 Airbus wide-body aircraft under short-term leases, 59 Boeing wide-body aircraft and 20 Boeing cargo freighters, totaling 383 aircraft. During the second quarter, the group received 6 A320Neo, 1 A321Neo and 2 Boeing 787-9 aircraft, and expects the delivery of 28 aircraft throughout the remainder of the year.
As of the date of publication, LATAM group has fleet commitment agreements with Airbus, Boeing, and Embraer for new aircraft. Additionally, the group has signed several contracts with lessors to receive narrow-body aircraft and Boeing wide-body aircraft in the coming years, as detailed below:
| Fleet Plan | 2Q26 | Projected as of the end of each year | ||||||||||||
| 2026 | 2027 | 2028 | ||||||||||||
| Passenger Aircraft | ||||||||||||||
| Narrow Body | ||||||||||||||
| Airbus Ceo Family | 223 | 223 | 210 | 198 | ||||||||||
| Airbus Neo Family | 79 | 94 | 109 | 144 | ||||||||||
Embraer E2 Family | 12 | 24 | 24 | |||||||||||
| Total NB | 302 | 329 | 343 | 366 | ||||||||||
| Wide Body | ||||||||||||||
| Boeing 787 | 40 | 41 | 43 | 48 | ||||||||||
| Other | 21 | 21 | 19 | 19 | ||||||||||
| Total WB | 61 | 62 | 62 | 67 | ||||||||||
| TOTAL | 363 | 391 | 405 | 433 | ||||||||||
| Cargo Aircraft | ||||||||||||||
| Boeing 767-300F | 20 | 19 | 19 | 19 | ||||||||||
| TOTAL | 20 | 19 | 19 | 19 | ||||||||||
| TOTAL FLEET (end of the period) | 383 | 410 | 424 | 452 | ||||||||||
| AVERAGE FLEET | 379 | 386 | 418 | 434 | ||||||||||
Note: This fleet plan considers LATAM group's best estimates for committed arrivals, current decisions regarding aircraft sales, retirements and lease extensions. In the Financial Statements, Note 13 describes the aircraft that are currently held for sale.
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2Q 2026 Results | | ||||
2026 GUIDANCE
LATAM updated its 2026 full-year guidance, reinstating its full set of guidance parameters. Supported by the greater visibility gained over recent months, this update reflects a more constructive backdrop for the remainder of the year than anticipated when the previous guidance was issued, particularly with respect to jet fuel prices.
Guidance for the full year 2026
| Guidance | Original 2026E Guidance (December 3, 2025) | Prior 2026E Guidance (May 5, 2026) | Updated 2026E Guidance (August 4, 2026) | ||||||||||||||||||||||||||
| Total ASK Growth vs 2025 | 8.0 | % | - | 10.0% | 9.0 | % | - | 10.0% | |||||||||||||||||||||
| Domestic Brazil ASK Growth vs 2025 | 6.0 | % | - | 8.0% | 8.0 | % | - | 9.0% | |||||||||||||||||||||
| Domestic Spanish Speaking Countries ASK Growth vs 2025 | 5.0 | % | - | 7.0% | 4.0 | % | - | 5.0% | |||||||||||||||||||||
| International ASK Growth vs 2025 | 11.0 | % | - | 13.0% | 11.0 | % | - | 12.0% | |||||||||||||||||||||
| Total ATK Growth vs 2025 | 5.0 | % | - | 7.0% | 5.0 | % | - | 6.0% | |||||||||||||||||||||
| Revenues (US$ billion) | 15.5 | - | 16.0 | 17.3 | - | 17.7 | |||||||||||||||||||||||
Adjusted CASK ex fuel1 (US$ cents) | 4.75 | - | 4.95 | 5.00 | - | 5.20 | |||||||||||||||||||||||
Adjusted Passenger CASK ex fuel1 (US$ cents) | 4.30 | - | 4.50 | 4.50 | - | 4.70 | 4.50 | - | 4.70 | ||||||||||||||||||||
Adjusted Operating Income2 (US$ billion) | 2.35 | - | 2.65 | 2.10 | - | 2.30 | |||||||||||||||||||||||
Adjusted Operating Margin2 | 15.0 | % | - | 17.0% | 12.0% | - | 13.0% | ||||||||||||||||||||||
Adjusted EBITDA2 (US$ billion) | 4.20 | - | 4.60 | 3.80 | - | 4.20 | 4.10 | - | 4.40 | ||||||||||||||||||||
Adjusted EBITDA Margin2 | 27.0 | % | - | 29.0% | 23.0% | - | 25.0% | ||||||||||||||||||||||
Adjusted Levered Free Cash Flow3 (US$ billion) | >1.7 | ≥1.3 | |||||||||||||||||||||||||||
Liquidity4 (US$ billion) | >5.0 | ≥4.5 | ≥4.7 | ||||||||||||||||||||||||||
Total Net Debt5 (US$ billion) | <6.2 | ≤6.8 | |||||||||||||||||||||||||||
Total Net Debt5/Adjusted EBITDA2 (x) | ≤1.4x | ≤1.8x | ≤1.6x | ||||||||||||||||||||||||||
| Assumptions | |||||||||||||||||||||||||||||
| Average exchange rate (BRL/USD) | 5.5 | 5.15 | 5.15 | ||||||||||||||||||||||||||
Jet fuel price6 (US$/bbl) | 90 | Q2:170 | Q3:170 | Q4:150 | Q3:147 | Q4:130 | ||||||||||||||||||||||||||
1) Adjusted CASK ex-fuel includes adjustments to add back the effect of other gains and losses and employee compensations associated with the Corporate Incentive Plan. Adjusted Passenger CASK ex fuel is further adjusted to exclude cargo costs associated with belly and freighter operations.
2) Adjusted EBITDA excludes other gains and losses and employee compensations associated with the Corporate Incentive Plan, and is further adjusted to exclude foreign exchange gains and results of indexation units.
3) Adjusted Levered Free Cash Flow calculated as the sum of net cash (outflow) inflow from operating and investing activities, adding payments from lease liabilities (amortization and interest) and financing predelivery payments, excluding amounts raised from the sale of property, plant and equipment, adding aircraft and non-aircraft financing interest.
3) Adjusted Levered Free Cash Flow calculated as the sum of net cash (outflow) inflow from operating and investing activities, adding payments from lease liabilities (amortization and interest) and financing predelivery payments, excluding amounts raised from the sale of property, plant and equipment, adding aircraft and non-aircraft financing interest.
4) Liquidity is defined as Cash and Cash Equivalents and undrawn, committed revolving credit facilities. Assumes a minimum statutory dividend distribution equivalent to 30% of net income.
5) Total Net Debt includes operating lease liabilities, finance leases and other financial debt, and net of Cash and Cash Equivalents. Assumes a minimum statutory dividend distribution equivalent to 30% of net income.
6) The jet fuel price projection does not include into-wing cost. For Q3, it considers a real fuel price in July of US$142 per barrel and projections for August and September of US$150 per barrel.
Note on forward-looking assumptions, outlooks and expectations are not facts but rather a good faith estimate of reality based on selected information believed to be reasonable. However, reality may differ from assumptions, outlooks and expectations. This report also contains forward-looking statements. Such statements may contain words such as “could,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “believe” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on LATAM's current plans, estimates and projections and, therefore, you should not place undue reliance on such statements or the estimates arising from them. Forward-looking statements involve known and unknown inherent risks, uncertainties and other
8
2Q 2026 Results | | ||||
factors, many of which are beyond LATAM's control and are difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. The financial information contained herein does not constitute or replace in any way the submission of the corresponding financial statements of the Commission for the Financial Market (CMF) and the market, in terms of their content requirements, applicable procedures and deadlines of submission corresponding to the CMF in accordance with current regulations. These factors and uncertainties include in particular those described in documents we have filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update any of them, whether as a result of new information, future events or any other factor. Our results may not be indicative of future performance, which remains subject to a number of uncertainties, including the risks disclosed in our annual report on Form 20-F, which was filed on March 3, 2026, and in our Annual Integrated Report filed April 2026, and especially the risks and uncertainties associated with global developments, including the conflicts in the Middle East. In addition, as disclosed in our annual report on Form 20-F, our business is seasonal and our passenger revenues are generally higher in the first and fourth quarters of each year, during the Southern Hemisphere’s spring and summer. Finally, demand for air travel and cargo services is influenced by a number of factors beyond our control, including global, regional and national political and socioeconomic developments as well as changes in our competitive landscape, all of which could have a material impact on our ability to achieve the guidance disclosed herein.
FINANCIAL STATEMENTS PUBLICATION AND CONFERENCE CALL
LATAM Airlines Group S.A. filed its financial statements for the period ended June 30, 2026 with the Comisión para el Mercado Financiero (CMF) of Chile on August 4, 2026. These financial statements are available in Spanish and English at ir.latam.com For further inquiries, please contact the Investor Relations team at InvestorRelations@latam.com.
The Company will hold a conference call to discuss the second quarter 2026 financial results on August 5, 2026, at 9:00 am ET /Santiago.
Webcast Link: Click here
Participant Call Link: Click here
About LATAM Airlines Group S.A.:
LATAM Airlines Group S.A. and its affiliates are the principal group of airlines in Latin America present in five domestic markets in the region: Brazil, Chile, Colombia, Ecuador and Peru, in addition to international operations within Latin America and to / from Europe, the United States, Oceania, Africa and the Caribbean.
The group has a fleet of Boeing 767, 777, 787, Airbus A321, A321Neo, A320, A320Neo, and A319 aircraft. Additionally, the Airbus 330, operated under short-term leases, is also part of the current operations.
LATAM Cargo Chile, LATAM Cargo Colombia and LATAM Cargo Brazil are the LATAM group cargo subsidiaries. In addition to having access to the bellies of the passenger affiliates's aircraft, they have a fleet of 20 freighters. They operate on the LATAM group network as well as international routes that are exclusively operated by freighters. They offer modern infrastructure, a wide variety of services and protection options to meet all customer needs.
For LATAM press inquiries, please write to comunicaciones.externas@latam.com. Additional financial information is available at ir.latam.com.
9
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Operational Statistics
| For the three month period ended June 30 | For the six month period ended June 30 | ||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
| System | |||||||||||||||||||||||
| Costs per ASK (US$ cents) | 8.9 | 7.0 | 27.9% | 8.1 | 6.9 | 16.9% | |||||||||||||||||
| Adjusted Costs per ASK (US$ cents) | 8.9 | 7.0 | 27.2% | 8.1 | 6.9 | 16.7% | |||||||||||||||||
| Costs per ASK ex fuel (US$ cents) | 5.1 | 4.8 | 5.5% | 5.1 | 4.7 | 8.2% | |||||||||||||||||
| Adjusted Costs per ASK ex fuel (US$ cents) | 5.0 | 4.8 | 4.6% | 5.0 | 4.7 | 7.9% | |||||||||||||||||
Adjusted Passenger CASK ex fuel (US$ cents) | 4.5 | 4.3 | 5.6% | 4.5 | 4.2 | 8.7% | |||||||||||||||||
| Fuel Gallons Consumed (millions) | 371 | 347 | 6.8% | 754 | 695 | 8.5% | |||||||||||||||||
| Fuel Gallons Consumed per 1,000 ASKs | 8.3 | 8.5 | (1.9%) | 8.4 | 8.5 | (1.0%) | |||||||||||||||||
| Fuel Price (with hedge) (US$ per gallon) | 4.63 | 2.55 | 81.3% | 2.71 | 2.80 | (3.3%) | |||||||||||||||||
Fuel Price (with hedge) (US$ per barrel) | 194.5 | 107.1 | 81.3% | 113.8 | 117.6 | (3.2%) | |||||||||||||||||
| Fuel Price (without hedge) (US$ per gallon) | 4.61 | 2.51 | 83.8% | 2.77 | 2.79 | (0.8%) | |||||||||||||||||
Fuel Price (without hedge) (US$ per barrel) | 193.6 | 105.4 | 83.8% | 116.3 | 117.2 | (0.8%) | |||||||||||||||||
| Average Trip Length (km) | 1,724 | 1,655 | 4.2% | 1,640 | 1,698 | (3.4%) | |||||||||||||||||
| Total Number of Employees (average) | 43,082 | 39,430 | 9.3% | 42,400 | 39,129 | 8.4% | |||||||||||||||||
| Total Number of Employees (end of the period) | 43,341 | 39,657 | 9.3% | 43,341 | 39,657 | 9.3% | |||||||||||||||||
| Passenger | |||||||||||||||||||||||
| ASKs (millions) | 44,489 | 40,863 | 8.9% | 90,027 | 82,120 | 9.6% | |||||||||||||||||
| RPKs (millions) | 36,390 | 34,103 | 6.7% | 75,235 | 68,486 | 9.9% | |||||||||||||||||
| Passengers Transported (thousands) | 21,098 | 20,592 | 2.5% | 43,978 | 41,561 | 5.8% | |||||||||||||||||
| Load Factor (based on ASKs) % | 81.8% | 83.5% | (1.7pp) | 83.6% | 83.4% | 0.2pp | |||||||||||||||||
| Yield based on RPKs (US$ cents) | 9.9 | 8.3 | 19.9% | 9.7 | 8.4 | 14.8% | |||||||||||||||||
| Revenues per ASK (US$ cents) | 8.1 | 6.9 | 17.5% | 8.1 | 7.0 | 15.1% | |||||||||||||||||
| Cargo | |||||||||||||||||||||||
| ATKs (millions) | 2,158 | 2,053 | 5.1% | 4,313 | 4,068 | 6.0% | |||||||||||||||||
| RTKs (millions) | 1,146 | 1,108 | 3.4% | 2,243 | 2,177 | 3.0% | |||||||||||||||||
| Tons Transported (thousands) | 261 | 256 | 1.9% | 512 | 499 | 2.5% | |||||||||||||||||
| Load Factor (based on ATKs) % | 53.1% | 54.0% | (0.9pp) | 52.0% | 53.5% | (1.5pp) | |||||||||||||||||
| Yield based on RTKs (US$ cents) | 44.5 | 37.8 | 17.8% | 41.4 | 37.9 | 9.4% | |||||||||||||||||
| Revenues per ATK (US$ cents) | 23.6 | 20.4 | 15.9% | 21.5 | 20.3 | 6.4% | |||||||||||||||||
Note: Adjusted figures include adjustments to add back the effect of other gains and losses, variable Aircraft Rental expenses (non-cash P&L effect) and employee compensation associated with the Corporate Incentive Plan. Adjusted Passenger CASK ex fuel also excludes cargo costs associated with belly and freighter operations.
10
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Financial Results for the Second Quarter 2026 (in thousands of US Dollars)
| For the three month period ended June 30 | |||||||||||||||||
| 2026 | Adjustments | 2026 Adjusted | 2025 Adjusted | % Change | |||||||||||||
| REVENUE | |||||||||||||||||
| Passenger | 3,613,485 | — | 3,613,485 | 2,824,314 | 27.9% | ||||||||||||
| Cargo | 510,009 | — | 510,009 | 418,641 | 21.8% | ||||||||||||
| Other Income | 59,144 | — | 59,144 | 36,087 | 63.9% | ||||||||||||
| TOTAL OPERATING REVENUE | 4,182,638 | — | 4,182,638 | 3,279,042 | 27.6% | ||||||||||||
| EXPENSES | |||||||||||||||||
| Wages and Benefits | (558,919) | 215 | (558,704) | (446,860) | 25.0% | ||||||||||||
| Aircraft Fuel | (1,712,179) | — | (1,712,179) | (886,803) | 93.1% | ||||||||||||
| Commissions to Agents | (78,852) | — | (78,852) | (56,904) | 38.6% | ||||||||||||
| Depreciation and Amortization | (486,059) | — | (486,059) | (427,252) | 13.8% | ||||||||||||
| Other Rental and Landing Fees | (428,128) | — | (428,128) | (408,363) | 4.8% | ||||||||||||
| Passenger Services | (109,856) | — | (109,856) | (85,634) | 28.3% | ||||||||||||
| Aircraft Maintenance | (220,948) | — | (220,948) | (177,923) | 24.2% | ||||||||||||
| Other Operating Expenses | (360,946) | — | (360,946) | (366,497) | (1.5%) | ||||||||||||
| Other gains/(losses) | (8,428) | 8,428 | — | — | n.m | ||||||||||||
| TOTAL OPERATING EXPENSES | (3,964,315) | 8,643 | (3,955,672) | (2,856,236) | 38.5% | ||||||||||||
| OPERATING INCOME/(LOSS) | 218,323 | 8,643 | 226,966 | 422,806 | (46.3%) | ||||||||||||
| Operating Margin | 5.2% | 0.2pp | 5.4% | 12.9% | -7.5pp | ||||||||||||
| Interest Income | 39,607 | — | 39,607 | 26,975 | 46.8% | ||||||||||||
| Interest Expense | (164,465) | — | (164,465) | (155,324) | 5.9% | ||||||||||||
| Foreign exchange gains | (32,968) | 32,968 | — | — | n.m | ||||||||||||
| Result of indexation units | 643 | (643) | — | — | n.m | ||||||||||||
| INCOME/(LOSS) BEFORE TAXES | 61,140 | 40,968 | 102,108 | 294,457 | (65.3%) | ||||||||||||
| Income Taxes | 56,774 | — | 56,774 | (11,480) | n.m | ||||||||||||
| NET INCOME/(LOSS) | 117,914 | 40,968 | 158,882 | 282,977 | (43.9%) | ||||||||||||
| Attributable to: | |||||||||||||||||
| Owners of the parent company | 125,219 | 40,968 | 166,187 | 282,745 | (41.2%) | ||||||||||||
| Non-controlling interest | (7,305) | — | (7,305) | 232 | n.m | ||||||||||||
| NET INCOME/(LOSS) attributable to the owners of the parent company | 125,219 | 40,968 | 166,187 | 282,745 | (41.2%) | ||||||||||||
| Net Margin attributable to the owners of the parent company | 3.0% | 1.0pp | 4.0% | 8.6% | -4.6pp | ||||||||||||
| Effective Tax Rate | 92.9% | (37.3pp) | 55.6% | (3.9%) | 59.5pp | ||||||||||||
Financial Metrics for the Second Quarter 2026 | |||||||||||||||||
| For the three month period ended June 30 | |||||||||||||||||
| 2026 | 2025 | Change (%) | |||||||||||||||
Diluted Earnings per ADS (US$) | 0.44 | 0.81 | (46.0)% | ||||||||||||||
Diluted Earnings per Share (US$) | 0.000218 | 0.000404 | (46.0)% | ||||||||||||||
| Adjusted EBITDA (in thousands of US Dollars) | 713,025 | 850,058 | (16.1%) | ||||||||||||||
| Adjusted EBITDA Margin | 17.0% | 25.9% | -8.9pp | ||||||||||||||
Note: Adjustments include adjustments to add back the effect of other gains and losses, employee compensation associated with the Corporate Incentive Plan, foreign exchange gains and results of indexation units.
11
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Financial Results for the six-month period ended June (in thousands of US Dollars)
| For the six month period ended June 30 | |||||||||||||||||
| 2026 | Adjustments | 2026 Adjusted | 2025 Adjusted | Var. % | |||||||||||||
| REVENUE | |||||||||||||||||
| Passenger | 7,274,688 | — | 7,274,688 | 5,767,202 | 26.1% | ||||||||||||
| Cargo | 929,423 | — | 929,423 | 824,231 | 12.8% | ||||||||||||
| Other Income | 129,319 | — | 129,319 | 98,210 | 31.7% | ||||||||||||
| TOTAL OPERATING REVENUE | 8,333,430 | — | 8,333,430 | 6,689,643 | 24.6% | ||||||||||||
| EXPENSES | |||||||||||||||||
| Wages and Benefits | (1,108,761) | 4,402 | (1,104,359) | (876,999) | 25.9% | ||||||||||||
| Aircraft Fuel | (2,749,119) | — | (2,749,119) | (1,860,766) | 47.7% | ||||||||||||
| Commissions to Agents | (161,018) | — | (161,018) | (110,555) | 45.6% | ||||||||||||
| Depreciation and Amortization | (978,315) | — | (978,315) | (816,154) | 19.9% | ||||||||||||
| Other Rental and Landing Fees | (881,980) | — | (881,980) | (791,460) | 11.4% | ||||||||||||
| Passenger Services | (221,855) | — | (221,855) | (169,985) | 30.5% | ||||||||||||
| Aircraft Maintenance | (448,203) | — | (448,203) | (363,986) | 23.1% | ||||||||||||
| Other Operating Expenses | (739,093) | — | (739,093) | (703,703) | 5.0% | ||||||||||||
| Other gains/(losses) | (15,440) | 15,440 | — | — | n.m | ||||||||||||
| TOTAL OPERATING EXPENSES | (7,303,784) | 19,842 | (7,283,942) | (5,693,608) | 27.9% | ||||||||||||
| OPERATING INCOME/(LOSS) | 1,029,646 | 19,842 | 1,049,488 | 996,035 | 5.4% | ||||||||||||
| Operating Margin | 12.4% | 0.2pp | 12.6% | 14.9% | -2.3pp | ||||||||||||
| Interest Income | 76,598 | — | 76,598 | 60,033 | 27.6% | ||||||||||||
| Interest Expense | (328,471) | — | (328,471) | (307,049) | 7.0% | ||||||||||||
| Foreign exchange gains | (87,114) | 87,114 | — | — | n.m | ||||||||||||
| Result of indexation units | 983 | (983) | — | — | n.m | ||||||||||||
| INCOME/(LOSS) BEFORE TAXES | 691,642 | 105,973 | 797,615 | 749,019 | 6.5% | ||||||||||||
| Income Taxes | 3,963 | — | 3,963 | (19,086) | n.m | ||||||||||||
| NET INCOME/(LOSS) | 695,605 | 105,973 | 801,578 | 729,933 | 9.8% | ||||||||||||
| Attributable to: | |||||||||||||||||
| Owners of the parent company | 701,208 | 105,973 | 807,181 | 728,352 | 10.8% | ||||||||||||
| Non-controlling interest | (5,603) | — | (5,603) | 1,581 | n.m | ||||||||||||
| NET INCOME/(LOSS) attributable to the owners of the parent company | 701,208 | 105,973 | 807,181 | 728,352 | 10.8% | ||||||||||||
| Net Margin attributable to the owners of the parent company | 8.4% | 1.3pp | 9.7% | 10.9% | -1.2pp | ||||||||||||
| Effective Tax Rate | 0.6% | -0.1pp | 0.5% | (2.5%) | 3.0pp | ||||||||||||
Financial Metrics for the six-month period ended June | |||||||||||||||||
| For the six month period ended June 30 | |||||||||||||||||
| 2026 | 2025 | Change (%) | |||||||||||||||
Diluted Earnings per ADS (US$) | 2.44 | 1.99 | 23.0% | ||||||||||||||
Diluted Earnings per Share (US$) | 0.001221 | 0.000993 | 23.0% | ||||||||||||||
| Adjusted EBITDA (in thousands of US Dollars) | 2,027,803 | 1,812,189 | 11.9% | ||||||||||||||
| Adjusted EBITDA Margin | 24.3% | 27.1% | -2.8pp | ||||||||||||||
Note: Adjustments include adjustments to add back the effect of other gains and losses, employee compensation associated with the Corporate Incentive Plan, foreign exchange gains and results of indexation units.
12
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Balance Sheet (in thousands of US Dollars)
As of June 30, | As of December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | 2,650,857 | 2,150,113 | ||||||
| Other financial assets | 102,591 | 70,544 | ||||||
| Other non-financial assets | 258,686 | 236,071 | ||||||
| Trade and other accounts receivable | 1,636,452 | 1,381,869 | ||||||
| Accounts receivable from related entities | 1,604 | 7 | ||||||
| Inventories | 565,004 | 458,566 | ||||||
| Current tax assets | 128,184 | 75,704 | ||||||
| Total current assets other than non-current assets (or disposal groups) classified as held for sale | 5,343,378 | 4,372,874 | ||||||
| Non-current assets (or disposal groups) classified as held for sale | 10,338 | 10,338 | ||||||
| Total current assets | 5,353,716 | 4,383,212 | ||||||
| Other financial assets | 41,543 | 52,139 | ||||||
| Other non-financial assets | 98,525 | 93,517 | ||||||
| Accounts receivable | 13,816 | 13,950 | ||||||
| Intangible assets other than goodwill | 1,217,194 | 1,129,961 | ||||||
| Property, plant and equipment | 12,895,303 | 11,947,014 | ||||||
| Deferred tax assets | 27,945 | 21,098 | ||||||
| Total non-current assets | 14,294,326 | 13,257,679 | ||||||
| Total assets | 19,648,042 | 17,640,891 | ||||||
| Liabilities and shareholders' equity | ||||||||
| Other financial liabilities | 992,016 | 745,303 | ||||||
| Trade and other accounts payables | 2,756,314 | 2,684,846 | ||||||
| Accounts payable to related entities | 3,433 | 7,707 | ||||||
| Other provisions | 7,102 | 8,413 | ||||||
| Current tax liabilities | 23,020 | 31,950 | ||||||
| Other non-financial liabilities | 4,156,396 | 3,816,175 | ||||||
| Total current liabilities | 7,938,281 | 7,294,394 | ||||||
| Other financial liabilities | 8,036,085 | 7,343,223 | ||||||
| Accounts payable | 528,507 | 471,208 | ||||||
| Other provisions | 672,109 | 674,611 | ||||||
| Deferred tax liabilities | 353,171 | 338,674 | ||||||
| Employee benefits | 133,624 | 181,579 | ||||||
| Total non-current liabilities | 9,723,496 | 9,009,295 | ||||||
| Total liabilities | 17,661,777 | 16,303,689 | ||||||
| Share capital | 4,418,110 | 4,418,110 | ||||||
| Retained earnings | 2,661,126 | 2,170,280 | ||||||
| Other equity | — | 39 | ||||||
| Other reserves | (5,077,978) | (5,242,835) | ||||||
| Parent’s ownership interest | 2,001,258 | 1,345,594 | ||||||
| Non-controlling interest | (14,993) | (8,392) | ||||||
| Total equity | 1,986,265 | 1,337,202 | ||||||
| Total liabilities and equity | 19,648,042 | 17,640,891 | ||||||
13
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Statement of Cash Flow – Direct Method (in thousands of US Dollars)
As of June 30, | As of June 30, | |||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Cash collection from operating activities | ||||||||
| Proceeds from sales of goods and services | 8,846,582 | 7,151,738 | ||||||
| Other cash receipts from operating activities | 132,017 | 88,864 | ||||||
| Payments for operating activities | ||||||||
| Payments to suppliers for the supply goods and services | (5,859,621) | (4,514,461) | ||||||
| Payments to and on behalf of employees | (1,256,737) | (895,660) | ||||||
| Other payments for operating activities | (231,669) | (211,464) | ||||||
| Income taxes (paid) | (69,985) | (37,724) | ||||||
| Other cash inflows (outflows) | (17,675) | (40,322) | ||||||
| Net cash (outflow) inflow from operating activities | 1,542,912 | 1,540,971 | ||||||
| Cash flows from investing activities | ||||||||
| Amounts raised from sale of property, plant and equipment | — | 27,031 | ||||||
| Purchases of property, plant and equipment | (673,760) | (934,050) | ||||||
| Purchases of intangible assets | (62,165) | (47,936) | ||||||
| Interest received | 71,235 | 55,762 | ||||||
| Other cash inflows (outflows) | 39,611 | 28,715 | ||||||
| Net cash (outflow) inflow from investing activities | (625,079) | (870,478) | ||||||
| Cash flows inflow (out flow) from financing activities | ||||||||
| Payments to acquire or redeem the entity's shares | — | (151,997) | ||||||
| Amounts raised from long-term loans | 221,828 | 445,020 | ||||||
| Amounts raised from short-term loans | 139,745 | — | ||||||
| Loans repayments | (126,446) | (124,965) | ||||||
| Payments of lease liabilities | (244,977) | (202,369) | ||||||
| Dividends paid | (127,288) | (293,396) | ||||||
| Interest paid | (302,044) | (294,430) | ||||||
| Other cash (outflows) inflows | (15,603) | 1,170 | ||||||
| Net cash inflow (outflow) from financing activities | (454,785) | (620,967) | ||||||
| Net (decrease) increase in cash and cash equivalents before effect of exchanges rate change | 463,048 | 49,526 | ||||||
| Effects of variation in the exchange rate on cash and cash equivalents | 37,696 | 61,244 | ||||||
| Net (decrease) increase in cash and cash equivalents | 500,744 | 110,770 | ||||||
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 2,150,113 | 1,957,788 | ||||||
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 2,650,857 | 2,068,558 | ||||||
14
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Adjusted Free Cash Flow (in thousands of US Dollars)
| Adjusted Free Cash Flow | For the three month period ended June 30 | For the six month period ended June 30 | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Adjusted EBITDA | 713,025 | 850,058 | 2,027,803 | 1,812,191 | |||||||||||||
| Changes in working capital | (45,823) | 82,960 | (290,961) | (146,530) | |||||||||||||
| Cash taxes | (16,578) | (15,731) | (69,985) | (37,724) | |||||||||||||
| Operating lease payments | (211,174) | (189,270) | (403,649) | (345,798) | |||||||||||||
| Interest Income | 37,023 | 24,734 | 71,235 | 55,762 | |||||||||||||
| Adj. Operating cash flow | 476,472 | 752,749 | 1,334,443 | 1,337,900 | |||||||||||||
| Maintenance CapEx | (160,296) | (181,981) | (327,614) | (310,050) | |||||||||||||
| CapEx for growth & Fleet CapEx Net of Financing | (7,883) | (49,182) | (131,072) | (285,166) | |||||||||||||
| Adj. Investment cash flow * | (168,179) | (231,163) | (458,686) | (595,216) | |||||||||||||
| Adj. Unlevered FCF | 308,293 | 521,586 | 875,757 | 742,684 | |||||||||||||
| Interest on financial debt | (62,258) | (109,591) | (100,157) | (117,497) | |||||||||||||
| Interest on finance leases | (23,112) | (17,149) | (43,215) | (33,504) | |||||||||||||
| Adj. Levered FCF | 222,923 | 394,846 | 732,385 | 591,683 | |||||||||||||
| Finance lease amortization | (64,609) | (57,742) | (126,405) | (124,965) | |||||||||||||
| Non-Fleet Financial debt net amortization | (41) | — | (41) | — | |||||||||||||
| Dividends paid | (37,995) | (293,092) | (127,288) | (293,396) | |||||||||||||
| Other (Incl. Asset Sale, Fx and others) | (10,173) | 30,244 | 22,093 | 89,445 | |||||||||||||
| Share repurchases | — | (151,997) | — | (151,997) | |||||||||||||
| Adj. Financing & Others cash flow | (198,188) | (599,327) | (375,013) | (631,914) | |||||||||||||
| Change in cash | 110,105 | (77,741) | 500,744 | 110,770 | |||||||||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 2,540,752 | 2,146,299 | 2,150,113 | 1,957,788 | |||||||||||||
| CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 2,650,857 | 2,068,558 | 2,650,857 | 2,068,558 | |||||||||||||
| Fleet Cash Cost | (286,368) | (254,080) | (548,247) | (484,081) | |||||||||||||
*Adjusted Investment cash flow is equivalent to total CapEx net of financing. A reconciliation table can be found on page 19.
Notes:
1) Adjusted EBITDA includes adjustments to add back the effect of other gains and losses, employee compensation associated with the Corporate Incentive Plan, foreign exchange gains and results of indexation units.
2) Operating lease payments include and Operational Leases under IFRS 16 including amortization and interest (both fleet and non-fleet).
3) Maintenance CapEx primarily includes engine shop visits, aircraft c-checks and restocking of parts for existing operation, as well as CapEx associated with fleet projects that do not contribute additional capacity to the group's operations or add new features to the existing offered product.
4) Growth & Fleet CapEx (net of financing) includes CapEx associated with additional spare parts and engines, engine shop visits, aircraft c-checks and restocking of parts for additional operation, PDPs, fleet projects that contribute additional capacity or new features to the existing offered product and certain other strategic projects that add value, and fleet arrivals net of their financing.
5) Fleet Cash cost includes Finance lease amortization, interest on finance leases and operating lease payments (Excluding Non-fleet lease liabilities). Calculation can be found on page 17.
15
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Balance Sheet Indicators (in thousands of US Dollars)
As of June 30, | As of December 31, | |||||||
| 2026 | 2025 | |||||||
| Total Assets | 19,648,042 | 17,640,891 | ||||||
| Total Liabilities | 17,661,777 | 16,303,689 | ||||||
| Total Equity* | 1,986,265 | 1,337,202 | ||||||
Total Liabilities and Shareholders' equity | 19,648,042 | 17,640,891 | ||||||
| Fleet lease liabilities | 4,002,406 | 3,574,031 | ||||||
| Fleet financial debt | 1,971,809 | 1,696,566 | ||||||
| Total Fleet Debt | 5,974,215 | 5,270,597 | ||||||
| Total Non-Fleet Debt (includes non-fleet lease liabilities and non-fleet financial debt) | 3,051,033 | 2,817,929 | ||||||
| Total Gross Debt | 9,025,248 | 8,088,526 | ||||||
| Cash, cash equivalents and liquid investments | (2,650,857) | (2,150,113) | ||||||
| Total Net Debt | 6,374,391 | 5,938,413 | ||||||
*Includes non-controlling interest.
LATAM Airlines Group S.A.
Main Financial Ratios
| As of June 30, | As of December 31, | |||||||
| 2026 | 2025 | |||||||
| Cash, cash equivalents and liquid investments | 2,650,857 | 2,150,113 | ||||||
| Revolving Credit Facilities (RCF) | 1,575,000 | 1,575,000 | ||||||
| Liquidity (US$ thousands) | 4,225,857 | 3,725,113 | ||||||
| Liquidity as % of LTM revenues | 26.2% | 25.7% | ||||||
| Gross Debt (US$ thousands) | 9,025,248 | 8,088,526 | ||||||
| Gross Debt / Adjusted EBITDA (LTM) | 2.1x | 2.0x | ||||||
| Net Debt (US$ thousands) | 6,374,391 | 5,938,413 | ||||||
| Net Debt / Adjusted EBITDA (LTM) | 1.5x | 1.5x | ||||||
Note: Adjusted EBITDA (LTM) refers to Adjusted EBITDA (Last Twelve Months) (US$ thousands). For the ratios as of June 30, 2026, and December 31, 2025, it is calculated using the last twelve months as of June 30, 2026 (US$4,306,661) and the full twelve months in 2025 (US$4,091,049).
16
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Consolidated Fleet
| As of June 30, 2026 | |||||||||||
| Aircraft on Property, Plant & Equipment | Aircraft on Right of Use under IFRS16 | Total | |||||||||
| Passenger Aircraft | |||||||||||
| Boeing 767-300ER | 9 | — | 9 | ||||||||
| Boeing 777-300ER | 10 | — | 10 | ||||||||
| Boeing 787-8 | 6 | 4 | 10 | ||||||||
| Boeing 787-9 | 2 | 28 | 30 | ||||||||
| Airbus A319-100 | 11 | 28 | 39 | ||||||||
| Airbus A320-200 | 86 | 49 | 135 | ||||||||
| Airbus A320-Neo | 12 | 46 | 58 | ||||||||
| Airbus A321-200 | 30 | 19 | 49 | ||||||||
| Airbus A321-Neo | 5 | 16 | 21 | ||||||||
| TOTAL | 171 | 190 | 361 | ||||||||
| Short-term leases | |||||||||||
| Airbus A330-200 | — | 2 | 2 | ||||||||
| TOTAL | — | 2 | 2 | ||||||||
| Cargo Aircraft | |||||||||||
| Boeing 767-300F | 19 | 1 | 20 | ||||||||
| TOTAL | 19 | 1 | 20 | ||||||||
| TOTAL FLEET | 190 | 193 | 383 | ||||||||
Note: This table includes 1 Boeing 767-300F that was reclassified from Property, Plant and Equipment to Assets Held for Sale.
17
2Q 2026 Results | | ||||
LATAM Airlines Group S.A.
Reconciliation of Reported Amounts to Non-GAAP Items (in thousands of US Dollars)
LATAM Airlines Group S.A. ("LATAM" or "the Company") prepares its financial statements under “International Financial Reporting Standards” (“IFRS”) as issued by the IASB, however, for ease of presentation and comparison, the Income Statement in this report is presented in an Adapted by Nature Format. On some occasions, adjustments to these Income Statement figures are made for Special Items. These adjustments to include or exclude special items allows management an additional tool to understand and analyze its core operating performance and allow for more meaningful comparison in the industry. Therefore, LATAM believes these non-GAAP financial measures, derived from the consolidated financial statements but not presented in accordance with IFRS, may provide useful information to investors and others. In this table, you can find a reconciliation of the IFRS and the Adapted by Nature Format as LATAM reports its Income Statement in this earnings release for ease of comparison and further disclosure, as well as the adjustments made for Special Items.
These non-GAAP items may not be comparable to similarly titled non-GAAP items of other companies and should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show these reconciliations:
| For the three month period ended June 30, | For the six month period ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
| Cost of sales | (3,452,618) | (2,366,330) | 45.9% | (6,255,993) | (4,766,212) | 31.3% | |||||||||||||||||
| Distribution costs | (163,438) | (128,998) | 26.7% | (330,291) | (264,028) | 25.1% | |||||||||||||||||
| Administrative expenses | (211,726) | (206,141) | 2.7% | (427,771) | (397,919) | 7.5% | |||||||||||||||||
| Other expenses | (128,105) | (158,668) | (19.3%) | (274,289) | (290,189) | (5.5%) | |||||||||||||||||
| Other gains/(losses) | (8,428) | 12,679 | (166.5%) | (15,440) | 18,583 | (183.1%) | |||||||||||||||||
| TOTAL OPERATING EXPENSES | (3,964,315) | (2,847,458) | 39.2% | (7,303,784) | (5,699,765) | 28.1% | |||||||||||||||||
| Other gains/(losses) | 8,428 | (12,679) | (166.5%) | 15,440 | (18,583) | (183.1%) | |||||||||||||||||
| Adjustments for Corporate Incentive Plan | 215 | 3,901 | (94.5%) | 4,402 | 24,740 | (82.2%) | |||||||||||||||||
| ADJUSTED TOTAL OPERATING EXPENSES | (3,955,672) | (2,856,236) | 38.5% | (7,283,942) | (5,693,608) | 27.9% | |||||||||||||||||
| TOTAL OPERATING EXPENSES | (3,964,315) | (2,847,458) | 39.2% | (7,303,784) | (5,699,765) | 28.1% | |||||||||||||||||
| Aircraft fuel expenses | 1,712,179 | 886,803 | 93.1% | 2,749,119 | 1,860,766 | 47.7% | |||||||||||||||||
| Operating Expenses (Ex-Fuel) | (2,252,136) | (1,960,655) | 14.9% | (4,554,665) | (3,838,999) | 18.6% | |||||||||||||||||
| ASKs (millions) | 44,489 | 40,863 | 8.9% | 90,027 | 82,120 | 9.6% | |||||||||||||||||
| CASK (Ex-Fuel) | (5.1) | (4.8) | 5.5% | (5.1) | (4.7) | 8.2% | |||||||||||||||||
| ADJUSTED TOTAL OPERATING EXPENSES | (3,955,672) | (2,856,236) | 38.5% | (7,283,942) | (5,693,608) | 27.9% | |||||||||||||||||
| Aircraft fuel expenses | 1,712,179 | 886,803 | 93.1% | 2,749,119 | 1,860,766 | 47.7% | |||||||||||||||||
| Adjusted Operating Expenses (Ex-Fuel) | (2,243,493) | (1,969,433) | 13.9% | (4,534,823) | (3,832,842) | 18.3% | |||||||||||||||||
| ASKs (millions) | 44,489 | 40,863 | 8.9% | 90,027 | 82,120 | 9.6% | |||||||||||||||||
| ADJUSTED CASK Ex-Fuel (US$ cents) | (5.0) | (4.8) | 4.6% | (5.0) | (4.7) | 7.9% | |||||||||||||||||
| Operating lease payments | (211,174) | (189,270) | 11.6% | (403,649) | (345,798) | 16.7% | |||||||||||||||||
| Interest on finance leases | (23,112) | (17,149) | 34.8% | (43,215) | (33,504) | 29.0% | |||||||||||||||||
| Finance lease amortization | (64,609) | (57,742) | 11.9% | (126,405) | (124,965) | 1.2% | |||||||||||||||||
| Non-fleet lease liabilities | 12,527 | 10,081 | 24.3% | 25,022 | 20,186 | 24.0% | |||||||||||||||||
| FLEET CASH COSTS | (286,368) | (254,080) | 12.7% | (548,247) | (484,081) | 13.3% | |||||||||||||||||
| NET INCOME/(LOSS) | 117,914 | 241,801 | (51.2%) | 695,605 | 598,438 | 16.2% | |||||||||||||||||
| Income Taxes | (56,774) | 11,480 | (594.5%) | (3,963) | 19,086 | (120.8%) | |||||||||||||||||
| Interest Expense | 164,465 | 155,324 | 5.9% | 328,471 | 307,049 | 7.0% | |||||||||||||||||
| Interest Income | (39,607) | (26,975) | 46.8% | (76,598) | (60,033) | 27.6% | |||||||||||||||||
| Depreciation and Amortization | 486,059 | 427,252 | 13.8% | 978,315 | 816,154 | 19.9% | |||||||||||||||||
| EBITDA | 672,057 | 808,882 | (16.9%) | 1,921,830 | 1,680,694 | 14.3% | |||||||||||||||||
| Other gains/(losses) | 8,428 | (12,679) | (166.5%) | 15,440 | (18,583) | (183.1%) | |||||||||||||||||
| Foreign exchange gains/(losses) | 32,968 | 50,903 | (35.2%) | 87,114 | 126,048 | n.m | |||||||||||||||||
| Results of indexation units | (643) | (949) | (32.2%) | (983) | (710) | 38.5% | |||||||||||||||||
| Adjustments for Corporate Incentive Plan | 215 | 3,901 | (94.5%) | 4,402 | 24,740 | (82.2%) | |||||||||||||||||
| ADJUSTED EBITDA | 713,025 | 850,058 | (16.1%) | 2,027,803 | 1,812,189 | 11.9% | |||||||||||||||||
18
2Q 2026 Results | | ||||
| For the three month period ended June 30, | For the six month period ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||
| Purchases of property, plant and equipment | (353,779) | (563,779) | (37.2)% | (673,760) | (934,050) | (27.9)% | |||||||||||||||||
| Purchases of intangible assets | (37,127) | (22,831) | 62.6% | (62,165) | (47,936) | 29.7% | |||||||||||||||||
| Reconciled by: | |||||||||||||||||||||||
| Leased Maintenance Capitalizations | (40,866) | (54,659) | (25.2%) | (123,945) | (86,965) | 42.5% | |||||||||||||||||
| Capital raised for fleet related financing | 79,165 | 395,520 | (80.0)% | 193,165 | 445,020 | (56.6)% | |||||||||||||||||
| Financing of Pre delivery payments | 168,408 | — | n.m | 168,408 | — | n.m | |||||||||||||||||
| Recoveries of credits and Guarantee deposit received from assets | 16,020 | 14,586 | 9.8% | 39,611 | 28,715 | 37.9% | |||||||||||||||||
| Insurance recovery | — | — | n.m | — | — | n.m | |||||||||||||||||
| TOTAL CAPEX NET OF FINANCING | (168,179) | (231,163) | (27.2%) | (458,686) | (595,216) | (22.9%) | |||||||||||||||||
Net income attributable to owners of the parent company | 125,219 | 241,569 | (48.2%) | 701,208 | 596,857 | 17.5% | |||||||||||||||||
| Weighted average number of shares, diluted | 574,217,144 | 598,065,302 | (4.0%) | 574,218,512 | 601,235,931 | (4.5%) | |||||||||||||||||
| DILUTED EARNINGS PER SHARE (US$) | 0.00022 | 0.00040 | (46.0%) | 0.00122 | 0.00099 | 23.0% | |||||||||||||||||
| DILUTED EARNINGS PER ADS (US$) | 0.44 | 0.81 | (46.0%) | 2.44 | 1.99 | 23.0% | |||||||||||||||||
19