Q2 2026 LATAM Airlines Group SA Earnings Call

Operator 2: Hello, everyone. Thank you for joining us, and welcome to the Q2 2026 LATAM Airlines Group earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Before I turn the call over to the management, I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations, and as such, constitute forward-looking statements. Any matters discussed today that are not historical facts, particularly comments regarding the company's future plans, objectives, and expected performance or guidance are forward-looking statements.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. Before I turn the call over to the management, I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations, and as such, constitute forward-looking statements.

Speaker #1: Any matters discussed today that are not historical facts, particularly comments regarding the company's future plans, objectives, and expected performance, or guidance, are forward-looking statements.

Speaker #1: These statements are based on a range of assumptions that LATAM believes are reasonable but are subject to uncertainties and risks that are discussed in detail in the published 20F 2026 guidance, earnings release, financial statements, and related CMF and SEC filings.

Operator 2: These statements are based on a range of assumptions that LATAM believes are reasonable, but are subject to uncertainties and risks that are discussed in detail in the published 20F 2026 guidance, earnings release, financial statements, and related CMF and SEC filings. The company's actual results may differ significantly from those projected or suggested, and any forward-looking statements due to a variety of factors, which are discussed in detail in our SEC filings. If there are any members of the press on the call, please note that for the media, this is a listen-only call. I will now hand the conference over to Ricardo Batas, CFO. Mr. Batas, please go ahead.

Speaker #1: The company's actual results may differ significantly from those projected or suggested, and any forward-looking statements, due to a variety of factors, which are discussed in detail in our SEC filings.

Speaker #1: And if there are any members of the press on the call, please note that for the media this is a listen-only call. I will now hand the conference over to Ricardo Batas, CFO, Mr. Batas, please go ahead.

Speaker #2: Thank you. Hello, everyone, and good morning. Welcome to our second quarter 2026 conference. And thank you all for joining us today. Here with me is Roberto Alvo, our CEO, Andrés del Valle, Corporate Finance Director, and Tory Craigs, Head of Investor Relations.

Ricardo Bottas Dourado: Thank you. Hello, everyone, and good morning. Welcome to our Q2 2026 conference. Thank you all for joining us today. Here with me is Roberto Alvo, our CEO, Andrés del Valle, Corporate Finance Director, and Tori Creighton, Head of Investor Relations, and we will present the highlights and results for the Q2 2026. I'll hand it over to Roberto to share his opening remarks. Roberto.

Speaker #2: And we will present the highlights and results for the second quarter 2026. I'll hand it over to Roberto to share his opening remarks. Roberto.

Speaker #3: Good morning. Thank you, Ricardo. The second quarter of 2026 was an important demonstration of the resilience of LATAM's group's business model. During this period, the industry faced one of the sharpest increases in jet fuel prices in recent years, creating a significant cost headwind across the sector.

Roberto Alvo: Good morning, and thank you, Ricardo. Q2 2026 was an important demonstration of the resilience of LATAM Group's business model. During this period, the industry faced one of the sharpest increases in jet fuel prices in recent years, creating a significant cost headwind across the sector. As we estimated back in May, alongside our Q1 publication, the impact of higher jet fuel prices was in excess of USD 700 million in Q2 alone. Yet despite this environment, LATAM delivered profitable results, reflecting an adjusted operating margin of 5.4%, which was also on the higher end of the estimate that we had made of mid to low single digits back then. These results are not explained by a single initiative. They are the outcome of a business that has been consistently strengthened over the last several years to perform across different environments.

Speaker #3: As we estimated back in May, alongside our first quarter publication, the impact of higher jet fuel prices was in excess of $700 million in addition to in the second quarter alone.

Speaker #3: Yet, despite this environment, LATAM delivered profitable results reflecting an adjusted operating margin of 5.4%, which was also on the higher end of the estimate that we had made of mid to low single digits back then.

Speaker #3: These results are not explained by a single initiative. They are the outcome of a business that has been consistently strengthened over the last several years to perform across different environments, which starts with a dedicated effort to care for our customers constantly improving their experience and making them willing to experience LATAM.

Roberto Alvo: Which starts with a dedicated effort to care for our customers, constantly improving their experience and making them willing to experience LATAM. In addition to this, a diversified business structure integrating our passenger, cargo, and LATAM Pass businesses, together with an effective commercial strategy, a competitive cost structure, a strong balance sheet, and above all, the commitment of more than 43,000 employees across the group, enable LATAM's agile response while maintaining a focus on profitability. Throughout the quarter, this ecosystem delivered exactly what it was designed to deliver. Customer preference remains strong across the network, particularly in the premium segment, which now accounts for 29% of the passenger revenues, allowing the group to partially offset higher fuel costs through deferred adjustments while preserving healthy demand. At the same time, cargo, loyalty, and other ancillary sources of revenue diversification reinforce the resilience of the model during a particularly challenging period.

Speaker #3: In addition to this, a diversified business structure integrating our passenger, cargo, and LATAM pass businesses together with an effective commercial strategy, a competitive cost structure, a strong balance sheet, and above all, the commitment of more than 43,000 employees across the group, enabled LATAM's agile response while maintaining a focus on profitability.

Speaker #3: Throughout the quarter, this ecosystem delivered exactly what it was designed to deliver. Customer preference remained strong across the network, particularly in the premium segment, which now accounts for 29% of the passenger revenues, allowing the group to partially offset higher fuel costs through the fair adjustments while preserving healthy demand.

Speaker #3: At the same time, cargo, loyalty, and other ancillary sources of revenue diversification reinforced the resilience of the model during a particularly challenging period. Diversification only becomes an asset when it's supported by effective execution, and LATAM has consistently demonstrated that capability.

Roberto Alvo: The diversification only becomes an asset when it is supported by effective execution, and LATAM has consistently demonstrated that capability. During the period, the group rapidly activated multiple commercial operation initiatives to mitigate the impact of higher fuel prices while continuing to invest in customer experience, operational reliability, and the long-term competitiveness of the business. Financial strength also remained a key enabler, particularly in such a volatile environment. A strong balance sheet and healthy liquidity, over 26% of last 12 months revenues, provided LATAM with the flexibility to navigate a period of heightened uncertainty without losing focus on its long-term strategy and value-creating objectives. As we enter H2 2026, the environment remains highly dynamic. The significant swings in jet fuel prices we have seen over the last few weeks are a clear reminder that volatility continues to be present.

Speaker #3: During the period, the group rapidly activated multiple commercial operational initiatives to mitigate the impact of higher fuel prices, while continuing to invest in customer experience, operational reliability, and the long-term competitiveness of the business.

Speaker #3: Financial strength also remained a key enabler, particularly in such a volatile environment. A strong balance sheet and a healthy liquidity over 26% of last 12 months' revenues provided LATAM with the flexibility to navigate a period of heightened uncertainty without losing focus on its long-term strategy and value-creating objectives.

Speaker #3: As we enter the second half of 2026, the environment remains highly dynamic. The significant swings in jet fuel prices we have seen over the last few weeks are a clear reminder that volatility continues to be present.

Speaker #3: The second quarter provided us with one of the most severe fuel crises in the industry has experienced in recent years, and we believe we have navigated it well.

Roberto Alvo: Q2 provided us with one of the most severe fuel crises the industry has experienced in recent years, and we believe we have navigated it well. We do not expect that price volatility to decrease during the remainder of the current quarter. In this sense, we remain cautious, although this quarter also reinforced our confidence in the group's ability to navigate these challenging environments. As we now enter what is seasonally a stronger half of the year for the business, we do so with the confidence that comes from having demonstrated the resilience of our business model. LATAM Group has commercial and financial tools, operational flexibility, and most importantly, the people and the mindset to continue adapting effectively, navigating volatility, and creating long-term value.

Speaker #3: We don't expect that price volatility to decrease during the remainder of the current quarter. In this sense, we remain cautious, us, although this quarter also reinforced our confidence in the group's ability to navigate these challenging environments.

Speaker #3: As we now enter what is seasonally a stronger half of the year for the business, we do so with the confidence that comes from having demonstrated the resilience of our business model.

Speaker #3: LATAM Group has commercial and financial tools operational flexibility, and most importantly, the people and the mindset to continue adapting effectively navigating volatility and creating long-term value.

Speaker #3: Finally, regarding guidance, given the information we gathered in the past quarter and therefore better visibility, we are reinstating our full list of parameters and we have improved our outlook for the year.

Roberto Alvo: Finally, regarding guidance, given the information we gathered during the past quarter, and therefore better visibility, we are reinstating our full list of parameters, and we have improved our outlook for the year. However, it is important to note that because of the high fuel price volatility, these numbers should not be only seen as our expectation given the stated assumptions, but also as an understanding of the resilience of the model in the current environment. With that said, I will hand it over to Ricardo to go over specifics of LATAM's performance during the quarter. Thank you.

Speaker #3: However, it is important to note that because of the highly high fuel price volatility, these numbers should not be only seen as our expectations given the stated assumptions, but also as an understanding of the resilience of the model in the current environment.

Speaker #3: With that said, I'll hand it over to Ricardo to go over specifics of LATAM's performance during the quarter. Thank you.

Speaker #2: Thank you, Roberto. Please join me on slide 4 to have a look at our overall results. As Roberto just explained, the second quarter was defined by an unprecedented increase in jet fuel prices.

Ricardo Bottas Dourado: Thank you, Roberto. Please join me on slide four to have a look at our overall results. As Roberto just explained, Q2 was defined by an unprecedented increase in jet fuel prices. During the quarter, the all-in average fuel price, including hedges, increased by more than 80% year over year, resulting in a 93% increase in total fuel costs and creating one of the most significant cost headwinds the industry has faced in recent years. In response, LATAM rapidly implemented revenue management actions and targeted capacity adjustments. With these, total revenues increased almost 28% year over year, reaching nearly $4.2 billion. This was propelled by passenger revenues, which grew 28%, reflecting the consistent capacity growth together with the successful implementation of continued fare adjustments while preserving resilient demand across the network.

Speaker #2: During the quarter, the all-wheel average fuel price including heads, increased by more than 80% year over year, resulting in a 93% increase in total fuel costs and creating one of the most significant cost headwinds the industry has faced in recent years.

Speaker #2: In response, LATAM rapidly implemented revenue management actions and targeted capacity adjustments. With these, total revenues increased almost 28% year over year, reaching nearly $4.2 billion.

Speaker #2: This was propelled by passenger revenues, which grew 28%, reflecting the consistent capacity growth together with the successful implementation of continued fair adjustments while preserving resilient demand across the network.

Speaker #2: Cargo revenues increased almost 22%, benefiting from both high yield higher yields and continued growth in tons transported, which demonstrates the flexibility of this business to adjust pricing given its significantly shorter booking cycle.

Ricardo Bottas Dourado: Cargo revenues increased almost 22%, benefiting from both higher yields and continued growth in tons transported, which demonstrates the flexibility of this business to adjust pricing given its significantly shorter booking cycle. On the cost side, adjusted costs, excluding fuel, increased by 14%, broadly in line with the continued growth of the operation. It is worth noting that part of this increase reflect costs that are directly linked to higher passenger fares, together with the appreciation of local currencies, particularly the Brazilian real, which pressures the dollar-denominated cost base. Just as a reference, the Brazilian reference in Q2 2025 was 5.66 and now was 5.05. That said, passenger CASK ex-fuel remained sequentially in line at $0.0450.

Speaker #2: On the cost side, adjusted costs excluding fuel increased by 14%, broadly in line with the continued growth of the operation. It's worth noting that part of this increase reflects costs that are directly linked to higher passenger fares.

Speaker #2: Together with the appreciation of local currencies, particularly the Brazilian real, which pressures the dollar denominated cost base. Just as a reference, the Brazilian reference in Q2 2025 was $5.66, and now was $5.05.

Speaker #2: That said, passenger cask X fuel remained sequentially in line at $4.5. Despite these unprecedented fuel environment and wide growing capacity by 8.9% at a healthy 82% consolidated load factor level, LATAM remained profitable and delivered an adjusted operating margin as Roberto mentioned at 5.4% during what is seasonally the weakest quarter of the year.

Ricardo Bottas Dourado: Despite this unprecedented fuel environment and while growing capacity by 8.9% at a healthy 82% consolidated load factor level, LATAM remained profitable and delivered an adjusted operating margin, as Roberto mentioned, at 5.4% during what is seasonally the weakest Q2 of the year. This translated all the way to the bottom line, with the group generating a $+125 million net income. These results demonstrate that while the fuel shock had a significant impact on costs, the combination of effective execution, commercial flexibility, and the resilience of LATAM's diversified business model allowed the group to increase unit revenues this quarter, successfully mitigating a substantial portion of that impact. Let us now take a closer look at the commercial execution behind these results on the next slide number five.

Speaker #2: This translated all the way to the bottom line, with the group generating a positive net income of $125 million. These results demonstrate that while the fuel shock had a significant impact on costs and costs, the combination of effective execution, commercial flexibility, and the resilience of LATAM's diversified business model allowed the group to increase unit revenues this quarter, successfully mitigating a substantial portion of that impact.

Speaker #2: Let's now take a closer look at the commercial execution behind these results on the next slide, slide number 5. During the quarter, LATAM Group continued executing its profitable growth strategy, increasing consolidated capacity by 8.9% year over year, alongside some targeted capacity adjustments to mitigate the impact of higher fuel prices.

Ricardo Bottas Dourado: During the quarter, LATAM Group continued executing its profitable growth strategy, increasing consolidated capacity by 8.9% year over year, alongside some targeted capacity adjustments to mitigate the impact of higher fuel prices. These actions were selective, allowing LATAM to preserve profitability without compromising the strength, connectivity, or integrity of its overall network. Importantly, demand for LATAM Group remained resilient across all markets, even under a high fare environment. Consolidated load factors declined modestly from 83.5% to 81.8%, remaining at healthy levels across all markets where the group's affiliates operate during the quarter. It's worth mentioning that particularly in June, there was a higher impact on demand, reflecting the temporary impact of the FIFA World Cup on travel patterns across South America.

Speaker #2: These actions were selective, allowing LATAM to preserve profitability without compromising the strength, connectivity, or integrity of its overall network. Importantly, demand for LATAM Group remained resilient across all markets, even under a high fare environment.

Speaker #2: Consolidated load factors declined modestly from 83.5% to 81.8%, remaining at healthy levels across all markets, where the group's affiliates operate during the quarter. It's worth mentioning that, particularly in June, there was a higher impact on demand, reflecting the temporary impact of the FIFA World Cup on travel patterns across South America.

Speaker #2: This combination of effective capacity management, a differentiated value proposition, revenue actions, and resilient demand translated into a 17.5% increase in consolidated passenger RASK during the quarter, which allowed LATAM Group affiliates to successfully pass through a significant portion of the increase in fuel costs.

Ricardo Bottas Dourado: This combination of effective capacity management, a differentiated value proposition, revenue actions, and resilient demand translating to a 17.5% increase in consolidated passenger RASK during the quarter, which allowed LATAM Group affiliates to successfully pass through a significant portion of the increase in fuel costs. Looking at the different markets, LATAM's affiliates in the Spanish-speaking countries' domestic markets delivered a particularly strong performance, increasing passenger RASK by 15% in local currency or 20% in US dollars. For its part, LATAM Airlines Brasil and its domestic market also successfully increased its unit revenues, with passenger RASK growing 12% in local currency and almost 24% in US dollars, demonstrating its ability to implement fare adjustments while preserving healthy demand. Lastly, the international segment increased passenger RASK by almost 13%, even while expanding capacity by 12%. The quality of LATAM's revenues also play an important role.

Speaker #2: Looking at the different markets, LATAM's affiliates in the Spanish-speaking countries’ domestic markets delivered a particularly strong performance, increasing passenger RASK by 15% in local currency, or 20% in US dollars.

Speaker #2: For its part, LATAM Airlines Brazil and its domestic market also successfully increased unit revenues, with passenger RASK growing 12% in local currency and almost 24% in U.S. dollars, demonstrating its ability to implement fare adjustments while preserving healthy demand.

Speaker #2: Lastly, the international segment increased passenger RASK by almost 13%, even while expanding capacity by 12%. The quality of LATAM's revenues also played an important role.

Speaker #2: Premium demand continued to demonstrate greater resilience than the broader market, allowing the group to implement fair adjustments while preserving passenger preference across the network.

Ricardo Bottas Dourado: Premium demand continued to demonstrate greater resilience than the broader market, allowing the group to implement fare adjustments while preserving passenger preference across the network. Let's jump now to slide six to take a better view at this. LATAM's resilient revenue quality was particularly evident in two areas that continued to deliver exceptional results for the group, premium traffic and the LATAM Pass ecosystem. In a quarter as challenging as this one, these two elements once again proved to be especially valuable because they make up a part of the LATAM customer base that is structurally less elastic and more resilient. On the premium side, demand remained strong and continued to enhance the quality of the group's revenue mix, with premium revenues now representing 29% of the passenger revenues and growing at a rate faster than main cabin revenues.

Speaker #2: Let's jump now to slide 6 to take a better look at this. LATAM's resilient revenue quality was particularly evident in two areas that continue to deliver exceptional results for the group.

Speaker #2: Premium traffic and the LATAM Pass ecosystem. In a quarter as challenged as this one, these two elements once again proved to be especially valuable because they make up a part of the LATAM customer base that is structurally less elastic and more resilient.

Speaker #2: On the premium side, demand remained strong and continued to enhance the quality of the Group's revenue mix, with premium revenues now representing 29% of passenger revenues and growing at a rate faster than main cabin revenues.

Speaker #2: More importantly, this segment continued to respond positively to the differentiated value proposition LATAM has built over time, and reflected in net promoter score that remained 3 points above the overall passenger average in line with historically high levels.

Ricardo Bottas Dourado: More importantly, these segments continued to respond positively to the differentiated value proposition LATAM has built over time. Reflected in Net Promoter Score that remained three points above the overall passenger average, in line with historically high levels. This confirms that the investment made in product and services continued to strengthen customer preference. LATAM Pass also remained a key lever during the quarter. The program continued to deepen customer engagement and strengthen loyalty across the network while supporting a more resilient and higher quality revenue base. Over time, LATAM Pass has evolved well beyond the traditional frequent flyer program into a broader engagement ecosystem, allowing the group affiliates to strengthen their customers' relationship, both in and beyond the travel experience. Today, more than 67% of passenger revenues are generated by LATAM Pass members, up from 60% previously, reinforcing the growing importance of the program within the commercial ecosystem.

Speaker #2: This confirms that the investment made in product and services continued to strengthen customer preference. LATAM Pass also remained a key lever during the quarter.

Speaker #2: The program continued to deepen customer engagement and strengthen loyalty across the network while supporting a more resilient and higher quality revenue base. Over time, LATAM Pass has evolved well beyond a traditional frequent flyer program into a broader engagement ecosystem, allowing the group affiliates to strengthen their customers' relationship both in and beyond the travel experience.

Speaker #2: Today, more than 67% of passenger revenues are generated by LATAM Pass members, up from 60% previously. Reinforcing the group, the growing importance of the program within the commercial ecosystem.

Speaker #2: The engagement of elite members also continues to deepen. While the numbers of elite members increased by 26% year over year, third-party sales generated by this segment grew 48% compared to the same period of 2025.

Ricardo Bottas Dourado: The engagement of elite members also continues to deepen. While the numbers of elite members increased by 26% year-over-year, third-party sales generated by this segment grew 48% compared to the same period of 2025, highlighting the increasing of relevance of these customers across the board, the broader LATAM Pass ecosystem, and their growing engagement with the partner network. Altogether, the trust in the LATAM brand by customers, the alignment with the premium customers, and the LATAM Pass ecosystem help explain why LATAM affiliates were able to preserve revenue quality and successfully pass through a significant portion of higher fuel costs during the quarter. More importantly, they represent the strategic pillars that create value across the cycle. Not only strengthening the group's resilience during periods of highs and volatility, but also structural growth drives that will continue to support LATAM's Group commercial performance as the operating environment improves over time.

Speaker #2: Highlighting the increasing relevance of these customers across the board, the broader LATAM Pass ecosystem, and their growing engagement with the partner network. Altogether, the trust in the LATAM brand by customers, the alignment with the premium customers, and the LATAM Pass ecosystem helped explain why LATAM affiliates were able to preserve revenue quality and successfully pass through a significant portion of higher fuel costs during the quarter.

Speaker #2: More importantly, they represent a strategic pillar that creates value across the cycle, not only strengthening the group's resilience during periods of heightened volatility, but also structural growth drivers that will continue to support LATAM's commercial performance as the operating environment improves over time.

Speaker #2: Let's move to slide 7. The differentiated value proposition we just discussed is not only reflected in Premium and LATAM Pass; it is the result of several complementary elements working together, with the network playing a central role.

Ricardo Bottas Dourado: Let's move to the slide seven. The differentiated value proposition we just discussed is not only reflected in Premium and LATAM Pass. It is the result of several complementary elements working together, with the network playing a central role. The incorporation of the Embraer E2 fleet is a key enabler of this strategy, allowing LATAM Group to further strengthen its premium offer, expanding connectivity and open new sources of profitable growth. The entry into service initiatives are advancing positively and are on track. The first aircraft have already been manufactured, cabin certification is currently underway, and the seventh aircraft is already in production. LATAM Airlines Brasil expects to receive the first 12 aircraft between October and December of this year, with commercial operations confirmed to begin on 3 November 2026. The network will increase capillarity while further strengthening LATAM Airlines Brasil connectivity.

Speaker #2: The incorporation of the Embraer's E2 split is a key enabler of this strategy, allowing LATAM Group to further strengthen its premium offer expanding connectivity and open new sources of profitable growth.

Speaker #2: The entry-into-service initiatives are advancing positively and are on track. The first aircraft have already been manufactured, cabin certification is currently underway, and the seventh aircraft is already in production.

Speaker #2: LATAM Airlines Brazil expect to receive the first 12 aircraft between October and December on this year, with commercial operations confirmed to begin on November 3rd, 2026.

Speaker #2: The network will increase capillarity while further strengthening LATAM Airlines Brazil connectivity. The initial deployment will cover a total of 42 domestic routes, within the Brazilian market, which includes eight new routes, four connecting Guarulhos with the new destinations of Cabo Frio de Paraná, Condonópolis, and Macaé, enabling LATAM Brazil Airlines Brazil to expand into markets that were previously not part of its network.

Ricardo Bottas Dourado: The initial deployment will cover a total of 42 domestic routes within the Brazilian market, which includes eight new routes: four connecting Guarulhos with the new destinations of Cabo Frio, Ji-Paraná, Rondonópolis, and Macaé, enabling LATAM Airlines Brasil to expand into markets that were previously not part of its network, and four additional routes linking existing bases. These aircraft provide the flexibility to expand the group's connectivity across Brazil, increasing capillarity and broadening access to regions with attractive corporate and leisure demand profiles while creating new opportunities. Altogether, LATAM Airlines Brasil will reach a total of 67 domestic destinations, the largest network in its history, compared to 44 in 2019. Looking ahead, the airline is also evaluating up to 18 potential new bases for the next phase of its Embraer E2 expansion, as additional aircraft are delivered beginning early 2027.

Speaker #2: And four additional routes linking existing bases. These aircraft provide the flexibility to expand the group's connectivity across Brazil, increasing capillarity and broadening access to regions with attractive corporate and leisure demand profiles, while creating new opportunities.

Speaker #2: Altogether, LATAM Airlines Brazil will reach a total of 67 domestic destinations. The largest network in its history, compared to 44 in 2019. Looking ahead, the airline is also evaluating up to 18 potential new bases for the next phase of its Embraer E2 expansion, as an additional aircraft are delivered beginning early 2027.

Speaker #2: Beyond the domestic market, while this network expansion significantly enhances connectivity within Brazil, the strategic value goes well beyond domestic travel. By connecting smaller regional markets into the main focus cities, the Embraer E2 will provide customers with access to LATAM Group's extensive network across South America, and the four continents, served by the group.

Ricardo Bottas Dourado: Beyond the domestic market, while this network expansion significantly enhanced connectivity within Brazil, the strategic value goes well beyond domestic travel. By connecting smaller regional markets into the main focus cities, the Embraer E2 will provide customers with access to LATAM Group extensive network across South America and the four continents served by the Group. They increase the connectivity of overall network, broaden LATAM Group's addressable market, and further enhance the Group's value proposition. From a product perspective, the Embraer E2 will feature both the economy and premium economy cabin, reinforcing consistency across the fleet and preserving the differentiated experience that LATAM Group customers expect. Even with a differentiated aircraft configuration, the Group will continue delivering a consistent product standard so that the new aircraft type does not mean a different customer experience.

Speaker #2: The increases the connectivity of overall network, broadening LATAM Group's addressable market and further enhancing the group's value proposition. From a product perspective, the Embraer E2 will feature both the economy and premium economy cabin, reinforcing consistence across the fleet and preserving the differentiated experience that LATAM Group customers expect.

Speaker #2: Even with a differentiated aircraft configuration, the Group will continue delivering a consistent product standard, so that a new aircraft type does not mean a different customer experience.

Speaker #2: Overall, the incorporation of the Embraer E2 is not only about adding aircraft. It's about reinforcing the network, improving connectivity through a more efficient and versatile aircraft, and continuing to build on the differentiated value proposition that LATAM Group has developed across the region.

Ricardo Bottas Dourado: Overall, the incorporation of the Embraer E2 is not only about adding aircraft, it's about reinforcing the network, improving connectivity through a more efficient and versatile aircraft, and continue to build on the differentiated value proposition that LATAM Group has developed across the region. Moving on to slide eight, let's get back into the quarter's performance and take a look on the cash generation. The Group's strong operating performance continued to translate into solid cash generation during this quarter. LATAM generated $476 million in adjusted operating cash flow, even considering the impact of high jet fuel prices, once again, demonstrating the business ability to consistently convert earnings into cash. As a result, the Group generated a positive change in cash close to $+150 million before dividend payments, and ended the quarter with a positive net cash variation of $+110 million.

Speaker #2: Moving on to slide 8, let's skip back into the quarter's performance and take a look on the cash generation. The group's strong operating performance continues to translate into solid cash generation during this quarter.

Speaker #2: LATAM generated 476 million dollars in adjusted operating cash flow, even considering the impact of high jet fuel prices. Once again, demonstrating the business ability to consistently convert earnings into cash.

Speaker #2: As a result, the group generated a positive cash change in cash close to 150 million dollars before dividend payments, and ended the quarter with a positive net cash variation of 110 million dollars.

Speaker #2: It's worth noting that this dividend payment corresponds only with the remaining balance required to complete the mandatory 30% dividend distributed based on 2025 net income.

Ricardo Bottas Dourado: It's worth noting that these dividend payments correspond only with the remaining balance required to complete the mandatory 30% dividend distributed based on 2025 net income. As you may recall, LATAM had already distributed $400 million in interest dividends during Q4 of 2025, with this payment simply reflecting the final remain. This consistent cash generation remains one of LATAM's key pillars, providing the financial flexibility to continue investing in the business, strengthening the balance sheet, and executing the group's long-term strategy. Moving to slide nine, see how this translates into continuing to strengthen the balance sheet and level of liquidities. The group closed the quarter with liquidity of more than $4.2 billion, equivalent to 26.2% of last 12 months revenues.

Speaker #2: As you may recall, LATAM had already distributed $400 million in interest dividends during the fourth quarter of 2025, with this payment simply reflecting the final remainder.

Speaker #2: This consistent cash generation remains one of LATAM's key pillars, providing the financial flexibility to continue investing in the business, strengthening the balance sheet, and executing the group's long-term strategy.

Speaker #2: Moving on to slide 9, see how this translates into continued strengthening the balance sheet and level of liquidity. The group closed the quarter with liquidity of more than 4.2 billion dollars, equivalent to 26.2% of last 12 months' revenues.

Speaker #2: On the leveraged side, adjusted net leverage remained at 1.5 times, comfortably below the company's financial policy target and consistent with the planned capital management that has characterized LATAM over the last several years.

Ricardo Bottas Dourado: On the leverage side, adjusted net leverage remained at 1.5x, comfortably below the company's financial policy target and consistent with the planned capital management that has characterized LATAM over the last several years. This liquidity and net leverage position, together with management's perception that the stock is undervalued at the current prices, supported the board's decisions to propose a new share repurchase program, which was approved by shareholders early this week. The new program contemplates a duration of no more than five years and allows for the repurchase up to 5% of the company's total subscribed and paid shares. With this, shareholders have delegated to the board of directors the authority to determine the terms of the program's execution, including time, mechanisms, price, and other relevant conditions.

Speaker #2: This liquidity and net leverage position, together with management's perception that the stock is undervaluated at the current prices, supported the board's decision to propose a new shareholder purchase program, which was approved by shareholders early this week.

Speaker #2: The new program contemplates a duration of no more than five years and allows for the repurchase of up to 5% of the company's total subscribed and paid shares.

Speaker #2: With this, shareholders have delegated to the Board of Directors the authority to determine the terms of the program's execution, including its timing, mechanisms, pricing, and other relevant conditions.

Speaker #2: With this, we remain confident that the strengths and fundamentals of LATAM business model the commercial strategy and execution capacity both commercial and operationally combined with the strength of the capital structure maintain the solid foundations of the aspiration contained in the financial policy.

Ricardo Bottas Dourado: With this, we remain confident that the strength and fundamentals of LATAM business model, the commercial strategy and execution capacity, both commercial and operationally, combined with the strength of this capital structure, maintain the solid foundations of the aspiration contained in the financial policy. The policy, which considers the preservation of liquidity ratios between 21% and 25%, and a net leverage below 2x, allow us to continue on the path of improving LATAM's credit ratings. Now let's move to slide number 10. Following Q2, and as also as Roberto mentioned, we see a more constructive outlook for jet fuel prices over the remainder of the year. LATAM is updating its full-year guidance for 2026, reincorporating the full set of metrics, including capacity, with year-over-year growth between 9% and 10%, and revenue projections between $17.3 and $17.7 billion, among others.

Speaker #2: The policy which considers the preservation of liquidity ratios between 21 and 25 percent and a net leverage below two times, allow us to continue on the path of improving LATAM's credit ratings.

Speaker #2: Now let's move to slide number 10. Following the second quarter, and as Roberto also mentioned, we see a more constructive outlook for jet fuel prices over the remainder of the year.

Speaker #2: LATAM is updating its two-year guidance for 2026, reincorporating the full set of metrics, including capacity, with year-over-year growth between 9% and 10%, and revenue projections between $17.3 and $17.7 billion, among others.

Speaker #2: The updated guidance reflects a more constructive backdrop for the remainder of the year than the one anticipated when the prior guidance was issued. Particular with respect to fuel prices.

Ricardo Bottas Dourado: The updated guidance reflects a more constructive backdrop for the remainder of the year than the one anticipated when the prior guidance was issued, particularly with respect to fuel prices. Based on the assumptions incorporated today, LATAM expected Q2 to have represented the most challenged operating environment of the year. As the group enters a seasonally stronger H2 of the year under more favorable fuel assumptions, the updated outlook also incorporates what LATAM demonstrated during this quarter, its ability to execute the discipline and deliver solid results even under challenging conditions. Turning first to the assumptions behind the updated guidance. In the prior guidance, LATAM assumed an average fuel price of $107 per barrel for Q3 and $150 for Q4.

Speaker #2: Based on the assumptions incorporated today, LATAM expected the second quarter to have represented the most challenged operating environment of the year, as the group enters a seasonally stronger second half of the year under more favorable fuel assumptions the updated outlook also incorporates what LATAM demonstrated during the quarter.

Speaker #2: Its ability to execute with discipline and deliver solid results even under challenged conditions. Turning first to the assumptions behind the updated guidance, in the prior guidance, LATAM assumed an average fuel price of $170 per barrel for the third quarter and $150 per barrel for the fourth quarter.

Speaker #2: Today, reflecting the evolution of the market, the company now expects average fuel prices of 147 per barrel in third quarter and 130 dollars per barrel in the fourth quarter.

Ricardo Bottas Dourado: Today, reflecting the evolution of the market, the company now expects average fuel prices of $147 per barrel in Q3 and $130 per barrel in Q4. Based on these updated assumptions, LATAM now expects adjusted EBITDA between $4.1 billion and $4.4 billion, improving the midpoint of the prior guidance by $250 million. Passenger CASK ex-fuel is expected to remain in line with the prior guidance, between $0.045 and $0.047, as the assumption of BRL exchange rate stays at the same level of 5.15 reais per dollar. In terms of the balance sheet, liquidity is expected to end the year of at least $4.7 billion, while adjusted net leverage is projected to be equal to or below 1.6x.

Speaker #2: Based on this updated assumptions, LATAM now expects adjusted EBITDA between 4.1 billion and 4.4 billion dollars, improving the midpoint of the prior guidance by 250 million dollars.

Speaker #2: Passenger CASC ex-fuel is expected to remain in line with the prior guidance, between 4.5 and 4.7 cents, as the assumption of the BRL exchange rate stayed at the same level of 5.15.

Speaker #2: Per dollar, 5.15 reais per dollar. In terms of the balance sheet, liquidity is expected to end the year at at least $4.7 billion, while adjusted net leverage is projected to be equal to or below 1.6 times.

Speaker #2: Overall, the updated guidance reflects a business that has multiple levers to deliver results and that's now supported by a more constructive macroeconomic backdrop, despite the level of uncertainty and the fuel price volatility.

Ricardo Bottas Dourado: Overall, the updated guidance reflects a business that has multiple levers to deliver results, and that's now supported by a more constructive macroeconomic backdrop, despite the level of uncertainty and the fuel price volatility. Lastly, let's move on to slide 11 for a few closing remarks. First, Q2 did not change our strategy. It validated. In one of the most challenged operating environments in recent years, LATAM once again demonstrated that the business has built and planned to perform across different macro and market conditions, with now even more solid and tested foundations. Second, the group showed that it has multiple levers to deliver results. Effective execution, commercial flexibility, and the group diversified ecosystem allowed LATAM to preserve profitability, increase unit revenues, and mitigate a substantial portion of the fuel shock.

Speaker #2: Lastly, let's move on the slide 11 for a few closing remarks. First, the second quarter did not change our strategy. It validated. In one of the most challenged operating environments in recent years, LATAM once again demonstrated that the business has built and planned to perform across different macro and market conditions, with now even more solid and tested foundations.

Speaker #2: Second, the group showed that it has multiple levers to deliver results. Effective execution, commercial flexibility, and the group diversified ecosystem allowed LATAM to preserve profitability, increase unitary revenues, and mitigate a substantial portion of the fuel shock.

Speaker #2: Third, the high level of trust from customers and the quality of the group's revenue base continue to be among LATAM's key elements. Premium customers and the LATAM Pass ecosystem, once again supported by a more resilient demand profile, allowed the group to preserve revenue quality even in a significantly higher fare environment, supporting the profitable growth strategy.

Ricardo Bottas Dourado: Third, the high level of trust from customers and the quality of the group's revenue base continue to be among LATAM's key elements. Premium customers and LATAM Pass ecosystem, once again, supported by a more resilient demand profile, allowing the group to preserve revenue quality, even in a significantly higher fare environment, holding the profitable growth strategy, combining capacity increase with healthy load factor levels. Finally, LATAM is updating its full-year guidance for 2026 to reflect a more constructive outlook for the remainder of the year, having demonstrated the ability to deliver solid results during what we expect to have been

Speaker #2: Combining capacity increase with healthy load factor levels. And finally, LATAM is updating its full-year guidance for 2026 to reflect a more constructive outlook for the remainder of the year. Having demonstrated the ability to deliver solid results during what we expect to have been the most challenging quarter of the year, the group now enters a more favorable operating backdrop while remaining focused on disciplined execution, risk, and revenue management.

Roberto Alvo: To have been the most challenging quarter of the year, the group now enters a more favorable operating backdrop while remaining focused on discipline execution, risk, and revenue management. Thank you. Let's open the line for the questions.

Speaker #2: Thank you, and let's open the line for the questions.

Speaker #1: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand.

Operator 2: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first call comes from Michael Linenberg from Deutsche Bank. Your line is now open. Please go ahead.

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first call comes from Michael Lindenberg from Deutsche Bank.

Speaker #1: Your line is now open. Please go ahead.

Speaker #3: Oh, yeah. Hey, good morning, everyone. And well done. The fact that we're now back to an EBITDA guide for the year that is within spitting distance of where you were prior to the war even beginning.

Michael Linenberg: Oh, yeah. Hey, good morning, everyone, and well done. The fact that we're now back to an EBITDA guide for the year that is within spitting distance of where you were prior to the war even beginning. Well done on the revenue recapture, revenue recovery. I have two questions here. Just more specifically on the international, where the PRASK was up just under 13%. Can you just give me a better feel for how that looked via geography? I don't care about Oceania or Africa, I care more about Europe, North America, and just regional, how those may have differed, the trends in those various key markets.

Speaker #3: So well done on the revenue recapture, revenue recovery. I have two questions here. Just more specifically on the international, where the Prask was up just under 13 percent.

Speaker #3: Can you give me a better sense of what that looked like geographically? I’m not interested in Oceania or Africa; I care more about Europe and North America. Regionally, how did those areas differ, and what were the trends in those key markets?

Speaker #4: Hi, Mike. And thanks for the comments.

Roberto Alvo: Hi, Mike. Thanks for the comments.

Speaker #3: Oh, hey, Robert.

Michael Linenberg: Oh, hey, Roberto.

Speaker #4: Yeah. Across the board international was solid. In the previous quarters, I mentioned that we saw a little bit of weakness from South America to the US, linked at some point in time with potential visa restrictions, also with the announcements and policies of the US government in general.

Roberto Alvo: Yeah. Across the board, international was solid. In the previous quarters, I mentioned that we saw a little bit of weakness from South America to the US, linked at some point in time with potential visa restrictions, also with the announcements and policies of the US government in general. We have seen, I would say, a little bit of an improvement in those lines vis-a-vis what we had seen in previous quarters. Europe remains very solid. We had a little bit of a slowdown in demand generally for the World Cup, actually a little bit more than what we expected. We know that these events always have a little bit of an impact, and this, I think also had some impact on the Q2 results. Otherwise, probably would have been a little bit better. Regardless of that, the demand remains very solid.

Speaker #4: We have seen I would say a little bit of an improvement in those lines vis-à-vis what we had seen in previous quarters. Europe remains very solid.

Speaker #4: We had a little bit of a slowdown in demand generally for the World Cup. Actually, a little bit more than what we expected. We know that these events always have a little bit of an impact, and this, I think, also had some impact on the second quarter results.

Speaker #4: So, that probably would have been a little bit better. But regardless of that, the demand remains very solid. In the regional, I would divide it—I would say that Argentina is a little bit slower, and this is probably a function of the economic situation of Argentina at this point in time.

Roberto Alvo: In the regional, I would divide it into, I would say that Argentina is a little bit slower. This is probably a function of the economic situation of Argentina at this point in time. It was very strong in the beginning of the year, a little bit weaker in that sense. The northern part of South America is in a good place. I wouldn't mark any specific large concerns with respect to how we're seeing international demand. Oceania, even though you don't want to hear, it's also in a good place.

Speaker #4: It was very, very strong in the beginning of the year, so a little bit weaker in that sense. The northern part of South America is in a good place.

Speaker #4: But I wouldn't mark any specific large concerns with respect to how we're seeing international demand in Oceania, even though you don't want to hear that.

Speaker #4: It's also in a good place.

Speaker #3: Okay, good. Okay, thank you. And then just my second question. To Ricardo, I did see that you took a tax credit in the quarter what drove that?

Michael Linenberg: Okay, good. Okay, thank you. Just my second question to Ricardo. I did see that you took a tax credit in the Q2. What drove that, and what's a good tax rate that we should use for the H2 2026? Thanks for taking my question.

Speaker #3: And what's a good tax rate that we should use for the back half of 2026? Thanks for taking my question.

Speaker #4: Hey. Hello, Michael. That mention and the tax credit, it's I call a regular business as usual situation because remember that we have a different tax environment in each country.

Ricardo Bottas Dourado: Hello, Michael. That mention in the tax credit, I call a regular business as usual situation because remember that we have a different tax environment in each country. In some countries, we could have, in some moments, some additional provisions or some tax credits that could take in some local administrative or even the judicial decision. That was the reason that we have that situation today in one affiliate. I think the best way to see, Michael, because I mentioned there is not a one-off itself, I think is to have last 12 or 24 months average tax rate, and I think it could be a good driver for you.

Speaker #4: So in some countries, we could have in some moments some additional provisions or some tax credits that could take in some local administrative or even the judicial decision.

Speaker #4: So that was the reason that we have that situation today in one affiliate. And I think the best way to see it, Michael, as I mentioned, is that this is not a one-off itself.

Speaker #4: I think it's to have last 12 or 24 months average tax rate. And I think it could be a good driver for you.

Speaker #3: Okay, great. Okay, thank you.

Michael Linenberg: Okay, great. Okay, thank you.

Speaker #4: Go ahead.

[Company Representative] (LATAM Airlines Group): Hello, guys. Can you hear me?

Speaker #5: Hey, hello, guys. Can you hear me?

Speaker #4: Now we can hear you, yes.

Roberto Alvo: Now we can hear you, yes.

[Company Representative] (LATAM Airlines Group): Okay. Yeah, sorry, it was mute for me. Thanks so much for taking the time. Hi, Roberto, Ricardo, André, Tori. My question is, think about 2027 now that the visibility is gradually improving. In looking at your fleet plan, the average number suggests that it should be increasing by mid to high single digits into next year. Just wondering if that is a fair assumption for capacity growth into 2027. Think about this fuel environment that we are seeing, given the fuel spike. Is it fair to assume that once fuel comes down, LATAM and the rest of the industry should be able to keep most of that price increases that we saw throughout 2026 for 2027? Thank you so much.

Speaker #5: Okay. Yeah, sorry. It was mute for me. Thanks so much for taking the time. Hi. Roberto, Ricardo, Andrea's story. My question is, think about 2027.

Speaker #5: Now that the disability is gradually improving, and looking at your fleet plan, the average number suggests that the fleet should be increasing by mid- to high-single digits into next year. Just wondering if that's a fair assumption for capacity growth into 2027.

Speaker #5: And think about this field environment that we are seeing given the few spike. Is it fair to assume that once fuel comes down, LATAM and the rest of the industry should be able to keep most of that price increases that we saw throughout 2026 for 2027?

Speaker #5: Thank you so much.

Speaker #4: Thank you, Guilherme. Let me see if I understood your fleet question correctly. So yes, we have on the fleet plan that increase in fleet that you see in 2027.

Roberto Alvo: Thank you, Guilherme. Let me see if I understood your fleet question correctly. Yes, we have on the fleet plan that increase in fleet that you see in 2027. Do remember that we are receiving a significant number of Embraers in the last two months of the year. Even though the count for the end of the year of 410 accounts for a dozen Embraers, they basically will not fly almost anything in 2026. We will see the impact of the Embraer fleet most significantly in 2027. We have not finalized our capacity plans for 2027, so we do not have a figure for you. We have the potential of growing significantly with this part of the fleet. Also remember that we have a number of old aircraft that we have decided to keep, these A319s, that are the flexibilities that we have downwards in case of need.

Speaker #4: Do you remember that we're receiving significant number of Embraers in the last two months of the year? So even though the count for the end of the year of 410 accounts for a dozen Embraers, they basically will not fly almost anything in 2026.

Speaker #4: So we'll see the impact of the Embraer fleet most significantly in 2027. We haven't finalized our capacity plans for 2027, so we don't have a figure for you but we have the potential of growing significantly with this part of the fleet and also remember that we have a number of old aircraft that we have decided to keep these 319s that are the flexibilities that we have downwards in case of need.

Speaker #4: Regarding your fair question for 2027, I mean, I would love to know I'd love to have a crystal ball here. I think that the comment here is demand is strong and stable.

Roberto Alvo: Regarding your fare question for 2027, I would love to have a crystal ball here. I think that the comment here is, demand is strong and stable. Premium revenues are growing. We see a lot of premium leisure, we see a lot of corporate. Ultimately, I think that the fare environment in 2027, let us assume that fuel goes down to something that looks a little bit more like 2024 or 2025. It will end up being, I guess, a function of industry capacity, probably. What we have seen in the past is that normally you see fares sticking a little bit longer when they are high before coming down than going the other way around. Let us see how the environment behaves for the time being and for the rest of the year.

Speaker #4: Premium revenues are growing. We see a lot of premium leisure. We see a lot of corporate ultimately, I think that the fair environment in 2027 let's assume that fuel goes down to something that looks a little bit more like 24, 2025.

Speaker #4: It'll end up being, I guess, a function of industry capacity probably. But what we have seen in the past is that normally you see fair sticking a little bit longer when they're high before coming down than going the other way around.

Speaker #4: But let's see how the environment behaves. For the time being and for the rest of the year, we have a good outlook in terms of demand and the capacity we are deploying matches well what we believe is what we can serve on what the passengers want to fly for the remainder of the year.

Roberto Alvo: We have a good outlook in terms of demand, and the capacity we are deploying matches well what we believe is what we can serve and what the passengers want to fly for the remainder of the year.

Speaker #5: Very clear. Thank you, Roberto.

[Company Representative] (LATAM Airlines Group): Very clear. Thank you, Roberto.

Speaker #2: Your next call comes from the line of Andre Ferrera with Bradesco BBI. Your line is now open. Please go ahead.

Operator 2: Your next call comes from the line of André Ferreira with Bradesco BBI. Your line is now open. Please go ahead.

Speaker #6: Hi, good morning. I'm Rex on the results. Thanks for taking my questions. So one is recently the Brazil development bank approved the credits for airlines using the typical Asian funds and attracted rates.

André Ferreira: Hi, good morning. Congrats on the results. Thanks for taking my questions. I have two here. One is, recently, the Brazilian Development Bank approved the credits for airlines using the National Civil Aviation Fund at attractive rates. My question is, if you plan on using it, and what is the latest on when the credit will actually be disbursed? My second question, in the guidance, LATAM raised domestic Brazil CASK guidance to 89%, continuing the rates compared to the December guidance, right? While cutting domestic Spanish-speaking countries to 4% to 5%. Looking at RASK in the two regions year-over-year, they are somewhat similar. My question is better relative demand strength, capacity discipline by competitors, fuel-driven economics? What was the driving force in that decision? Thank you.

Speaker #6: My question is if you plan on using it and what's the latest on when the credit will actually be disbursed? And my second question, in the guidance, there's domestic Brazil ISK down to 89%.

Speaker #6: Continue rates compared to the December guidance, right? While cutting domestic Spanish-speaking countries to 4 to 5, looking at risk in the two regions, year over year, they are somewhat similar.

Speaker #6: So my question is, if it's better relative demand strength, capacity discipline by competitors, field-driven economics, so what was the driving force in that decision?

Speaker #6: Thank you.

Speaker #4: Sorry, the audio was quite bad. So I think we understood your questions. So the first one regarding NAC, I'll pass it to Ricardo, and I'll take the capacity question on the domestic Brazil for the guidance.

Roberto Alvo: Sorry, the audio was quite bad. I think we understood your questions. First one regarding FNAC, I will pass it to Ricardo, and I will take the capacity question on the domestic Brazil for the guidance.

Speaker #6: Okay, regarding Fenac, I think it was public that there was a line of credit provided to the Brazilian airlines. So we are taking part of the access of that line of credit.

Ricardo Bottas Dourado: Okay, regarding FNAC, I think it was public that was a line of credit provided to the Brazilian airlines. We are taking part of the access of that line of credit. Yes, we are still having some ongoing conversations with the BNDES in terms of the ways that we should execute that line. So far, it's the information we have in terms of the line available for the entire market in Brazil until the end of this year. Okay?

Speaker #6: And yes, we are still having some ongoing conversations with the BNDS in terms of the ways that we should execute that line. But so far, it's the information we have in terms of the line available for the entire market in Brazil until the end of this year.

Speaker #6: Okay?

Roberto Alvo: Regarding capacity for domestic Brazil, I think I understood you were comparing it to the guidance for domestic Spanish-speaking countries. Remember again that we have the Embraer fleet coming into domestic Brazil specifically, we're accounting for that in the guidance. We see very healthy demand in Brazil in general. We see a number of opportunities to continue growing our network, as it was explained before. Domestic Brazil capacity is a little bit higher in this guidance than what we published in the beginning of the year when we gave the first outlook of 2026. This is basically a function of the robustness that we see in demand and the solidity of our network and our presence in Brazil. Also remember that our fleet has a lot of flexibility, we can move capacity around within the network.

Speaker #4: And regarding capacity for domestic Brazil and I think I understood you were comparing it to the guidance for domestic Spanish-speaking countries, remember again that we have the Embraer fleet coming into domestic Brazil specifically.

Speaker #4: So we're accounting for that in the guidance. We see very healthy demand in Brazil in general. We see a number of opportunities to continue growing our network as it was explained before.

Speaker #4: Domestic Brazil capacity is a little bit higher in this guidance than what we published at the beginning of the year, when we gave the first outlook for 2026.

Speaker #4: This is basically a function of the robustness that we see in demand and the solidity of our network and our presence in Brazil. Also, remember that our fleet has a lot of flexibility.

Speaker #4: So we can move capacity around within the network. And the current spread of capacity that you see between Spanish-speaking Brazil is basically a function on where we see the opportunities.

Roberto Alvo: The current spread of capacity that you see between Spanish-speaking Brazil is basically a function on where we see the opportunities. I think it's fair to say, finally, on domestic Spanish-speaking, that we are seeing a little bit of a weak domestic Chile environment. Actually, the economy hasn't grown for the last six or seven months, if you see the reports on the economy altogether. That has a little bit of an impact on the average that we see in Spanish-speaking. The position we have in domestic Chile is very healthy, still 65% market share. The outlook still is positive for the remainder of the year. I hope we answered your questions.

Speaker #4: I think it's fair to say, finally, on domestic Spanish-speaking, that we are seeing a little bit of a weak domestic Chile environment. Actually, the economy hasn't grown for the last six or seven months, if you see the reports.

Speaker #4: On the economy, altogether, and that has a little bit of an impact on the average that we see in Spanish-speaking, the position we have in domestic Chile is very healthy still, 65% market share.

Speaker #4: But the outlook is still positive for the remainder of the year. I hope we answered your questions, because we could hear them pretty badly.

Roberto Alvo: Perfect

Roberto Alvo: we could hear them pretty bad. Okay.

Speaker #4: Okay.

Speaker #5: Yeah. Sorry for the audio, but you answered it perfectly. Thank you.

André Ferreira: Yeah. Sorry for the audio, you answered it perfectly. Thank you.

Speaker #2: A reminder: if you would like to ask a question, please press star one. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Operator 2: A reminder, if you would like to ask a question, please press star one. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your next question comes from Jen Spies from Morgan Stanley. Your line is now open. Please go ahead.

Speaker #2: And if you are muted locally, please remember to unmute your device. Your next question comes from Jen Spies from Morgan Stanley. Your line is now open.

Speaker #2: Please go ahead.

Speaker #5: Yes, hello. Congrats on the results. Considering the challenging environment, quite impressive. So I just have two questions, basically. One, on your hedging and the hedging results for the quarter.

Jen Spies: Yes. Hello. Congrats on the results concerning the challenging environment. Quite impressive. I have two questions, basically. One, on your hedging and the hedging results for the quarter. You had a negative fuel hedging result. Just trying to understand how to forecast it into the future. At the end of the day, I do understand that your hedging strategy protects up to a certain range, we're still a bit surprised to see a negative result on that line specifically, just want to have a better understanding on how we can do a better job in forecasting that line going forward. Also considering that you're now incorporating more downside protection without limits. My second question goes to, in general, the Brazilian market environment. How are you seeing the competitive environment evolving? Not just in terms of capacity, prices.

Speaker #5: You had a negative fuel hedging result. So I'm just trying to understand how to forecast that into the future, because at the end of the day, I do understand that your hedging strategy protects up to a certain range.

Speaker #5: But we're still a bit surprised to see a negative result on that line specifically, and just want to have a better understanding of how we can do a better job in forecasting that line going forward.

Speaker #5: And also, considering that you're now incorporating more downside protection without limits. My second question relates to the Brazilian market environment. How are you seeing the competitive environment evolving, not just in terms of capacity but also prices?

Speaker #5: I mean, you've been very successful in raising prices. So just wondering, what's your sense of how things are heading? Thank you.

Jen Spies: You've been very successful in raising prices. Just wondering what's your sense of how things are heading. Thank you.

Speaker #6: Okay. Thank you, Jen. It's Ricardo speaking. Remember that the last quarter, we have closed that we have higher some additional calls together with the callers, the traditional callers that regular LATAM use to protect against the fuel price volatility.

Ricardo Bottas Dourado: Thank you, Jen. It's Ricardo speaking. Remember that the last quarter, we have disclosed that we have hired some additional calls, together with the traditional callers that regular LATAM use to protect against the fuel price volatility. After all, the negative impact on this quarter came from the premiums that we paid for those calls. Because of the positive evolution in terms of prices, we have a relevant concentration about the negative impact from the premiums, much more than the positive impact that will come from the settlement of the hedge. If you see the disclosure that we have for the next quarter, we have close to 80% of the protection in terms of volumes for Q3 in terms of calls. That was also higher at the beginning of the crisis. Everything that you should project is connected with this.

Speaker #6: And after all the negative impact on this quarter came from the premiums that we pay for those calls. And because of the positive evolution in terms of prices, we have a relevant concentration about the negative impact from the premiums, much more than the positive impact that will come from the settlement of the hedge.

Speaker #6: And also, if you see the disclosure that we have for the next quarter, we have close to 8% of the protection in terms of volumes for Q3, in terms of calls.

Speaker #6: That was also higher at the beginning of the crisis. So everything that you should project, it's connected with this. The level of calls that we used to have in the Q2 was higher than the level of calls that we have for Q3.

Ricardo Bottas Dourado: The level of calls that we used to have in the Q2 was higher than the level of calls that we have for Q3. Because of that, the level of premium should be lower. That's the way that you should forecast. Yes, we do see and continue to use the callers. In some ways, we could widen the range in terms of protection to capture more protection in terms of that four-way structures under the same hedge policy. We just now need to wait and see the market conditions to understand the way that we should move forward.

Speaker #6: And because of that, the level of premiums should be lower. That's the way that you should forecast. And yes, we do see and continue to use the callers in some ways.

Speaker #6: We could widen the range in terms of protection to capture more protection in terms of that four-way structures. Under the same hedge policy. So we just now need to wait and see the market conditions to understand the way that we should move forward.

Speaker #4: Okay. Regarding your question on the competitive environment in domestic Brazil, 2025 domestic Brazil out of the 10 largest domestic market in the world was the one that grew the most.

Roberto Alvo: Okay. Regarding your question on the competitive environment in domestic Brazil. 2025, domestic Brazil, out of the 10 largest domestic market in the world, was the one that grew the most. This year, the trend, despite of the fuel situation, continues. In general, we see a good development of the market. We have taken a leading position on the most important market in Brazil, which is Guarulhos Airport. Today, our relative frequency share in that airport is around 2.5 times, versus the second. Remember that Guarulhos is basically the entry point for international travel to Brazil. 65% of international capacity to Brazil flies into the airport.

Speaker #4: And this year, the trend, despite of the few situations, continues. So in general, we see a good development of the market. We have taken a leading position on the most important market in Brazil, which is the Guarulhos Airport.

Speaker #4: Today, our relative frequency share in that airport is around 2.5 times versus the second. And also remember that Guarulhos is basically the entry point for international travel to Brazil.

Speaker #4: Sixty-five percent of international capacity to Brazil flies into the airport. So today, the combination of the hub we have in Guarulhos, together with Brasília and our hub in the northeast in Fortaleza, and the presence we have in Congonhas, are a very solid footprint with respect to how we can serve the corporate business and the leisure business in Brazil.

Roberto Alvo: Today, the combination of the hub we have in Guarulhos together with Brasilia and our hub in the Northeast in Fortaleza and the presence we have in Congonhas are a very solid footprint with respect to how we can serve the corporate business and the leisure business in Brazil. Of course, this is going to be reinforced with the addition of the routes that Ricardo talked about on the E2s. Capacity in the market is in the high single digits if you account for everybody here. What we see in terms of capacity is, I would say, a level consistent with the dynamism of the domestic market in Brazil. In general, we have a good and positive outlook for the remainder of the year for the Brazilian market.

Speaker #4: And of course, this is going to be enforced, reinforced with the addition of the routes that Ricardo talked about on the A2s. Capacity in the market is in the high single digits.

Speaker #4: If you account for everybody here, but what we see in terms of capacity is, I would say, a level consistent with the dynamism of the domestic market in Brazil.

Speaker #4: So in general, we have a good and positive outlook for the remainder of the year for the Brazilian market.

Speaker #5: Perfect.

Jen Spies: Perfect. Thank you.

Speaker #2: Your next question.

Operator 2: Your next question.

Jen Spies: All right. Thank you.

Speaker #5: All right. Thank you.

Speaker #2: Your next question comes from the line of Felipe Nielsen, with City. Your line is now open. Please go ahead.

Operator 2: Your next question comes from the line of Filipe Nielsen with Citi. Your line is now open. Please go ahead.

Speaker #7: Hey. Hello, everyone. Thanks for taking my question. I do just have one question regarding the issues strategy. I think it was quite clear about this first phase on how you're deploying the aircraft, what are the routes, and etc.

Filipe Nielsen: Hey. Hello, everyone. Thanks for taking my question. I do just have one question regarding the E2 strategy. I think it was quite clear about this first phase on how you're deploying the aircraft, what are routes, and et cetera. I just wanted to understand a little bit better the strategy behind choosing the markets and choosing the routes here. Is it a strategy more focused on opening new markets, or are you targeting any specific gaps or regions that should enable more feed for your main cabin or international. How's the strategy behind choosing the markets? A follow-up to this one. Just wondering, how are you seeing the profitability regarding CASK and the margins profile compared to the other aircraft and the other routes that you're already serving in the country? Thank you.

Speaker #7: I just wanted to understand a little bit better the strategy behind choosing the markets and choosing the routes here. Is it a strategy more focused on opening new markets, or are you targeting any specific gaps or regions that should enable more feed for your main cabin or international?

Speaker #7: How does the strategy behind choosing the markets work? And as a follow-up to this, just wondering, how are you seeing the profitability and, regarding task and the margins profile, compared to the other aircraft and the other routes that you're already serving in the country?

Speaker #7: Thank you.

Speaker #4: Thanks. So on the umbrella, let me separate for a second the existing routes from new routes. So, on existing routes, the E2 allows us to do two things.

Roberto Alvo: Thanks. On the Embraer, let me separate for a second existing routes with new routes. On existing routes, the E2 allows us to do two things. One is to right-size the aircraft to the demand on specific times of the day, where probably the A320 is a little bit big for that particular time of the day. We're, in some cases, replacing frequencies of A320s with frequencies of E2s. The second thing we can do on those existing routes is add new times on parts of the day where the demand is a little bit lower. What you're seeing in some routes is more frequencies than the ones that we would have with only an A320 specific fleet. This improves the product on those routes. On new routes, you have kind of two possibilities.

Speaker #4: One is to right-size the aircraft to the demand on specific times of the day where probably the 320 is a little bit big. For that particular time of the day.

Speaker #4: So we're in some cases replacing frequencies of 8320s with frequencies of E2s. The second thing we can do on those existing routes is add new times on parts of the day where the demand is a little bit lower.

Speaker #4: So what you're seeing in some routes is more frequencies than the ones that we would have with only a 320 specific fleet. So this improves the product on those routes.

Speaker #4: And then on new routes, you have kind of two possibilities. One is operate airports where the E2, from an operational perspective, can fly and the 320 or the 319 cannot fly just because of airport infrastructure runway, whatever.

Roberto Alvo: One is operate airports where the E2, from an operational perspective, can fly, and the A320 or the A319 cannot fly just because of airport infrastructure, runway, whatever. Two, airports where we do operate today with the A320 fleet, and A319s in particular, but because these are less efficient, they're older aircraft and heavier aircraft, the economics of operating E2s is much better than the economics of operating A319. Those are the drivers on how we deploy E2s across the network, whether it's for current routes or for your new routes. We haven't yet flown the E2, so I can't give you a sense of the reality of the operation. We're very confident on it. It looks like a great airplane. We have seen the experience of other operators, all of them very happy.

Speaker #4: And two, airports where we do operate today with the A320 fleet, and A319s in particular, because these are less efficient. They're older aircraft and heavier aircraft.

Speaker #4: The economics of operating E2s is much better than the economics of operating 319s, so those are the drivers on how we deploy E2s across the network, whether it’s for current routes or for new routes.

Speaker #4: We haven't yet flown the E2, so I can't give you a sense of the reality of the operation. But we're very confident on it.

Speaker #4: It looks like a great airplane. We have seen the experience of other operators, all of them very happy. So we are actually very excited, anxious for November to arrive and to have our first flight with the Embraer planes in Brazil.

Roberto Alvo: We are actually very excited, anxious for November to arrive and have our first flight with the Embraer planes. That was the first question. What was the second question?

Speaker #4: That was the first question. There was a second question. Thank you.

Filipe Nielsen: Thank you.

Roberto Alvo: Thank you.

Speaker #7: Now, the second one was regarding the economics. But I think it was already answered. Thank you.

Filipe Nielsen: No, the second one was regarding the economics, but I think it was already answered. Thank you.

Speaker #4: Okay. Thank you.

Roberto Alvo: Okay. Thank you.

Speaker #2: Your next question comes from the line of Gabriel Resende, with Itaú Bank. Your line is now open. Please go ahead.

Operator 2: Your next question comes from the line of Gabriel Rezende with Itaú BBA. Your line is now open. Please go ahead.

Speaker #5: Hi, good morning. Two questions here on our side. First, if you could remind us a little bit more about the company's dividend policy.

Gabriel Rezende: Hi, good morning. Two questions here on our side. Just if you could remind us a little bit more about the company's dividend policy, and also how you're thinking about shareholders remuneration when you're deciding between share buybacks versus dividend announcements. Just trying to understand what's the possibility here for the coming quarters on top of the share buyback you have already announced. On a second point here, it's a little bit tricky for us to calculate what's your actual CASK growth because of all the different effects components into the equation. Just trying to understand how are you seeing operational leverage improving and potentially diluting CASK, as we look into this capacity expansion you are planning for the coming quarters under constant effects.

Speaker #5: And also, how you're thinking about shareholders remuneration when you're deciding between share buybacks versus dividend announcements. Just trying to understand what's the possibility here for the coming quarters on top of the share buyback.

Speaker #5: You have already announced it. Also, on a second point here, it's a little bit tricky for us to calculate your actual CASC growth because of all the different effects and components in the equation.

Speaker #5: So just trying to understand, how are you seeing operational leverage improving and potentially diluting CASC as we look into these capacity expansion airplanes for the coming quarters?

Speaker #5: Under cost and effects.

Speaker #4: Okay. Do you want to take the. And I take the. So we have shareholders meeting on the third approving a buyback for up to 5% of our shares.

Roberto Alvo: Okay. You want to take the CASK? We had shareholders meeting on the third, approving a buyback for up to 5% of our shares. Remember that in Chile, buybacks need to be first approved by the shareholders, and they have certain limits. You can only buy up to 5%, and you have up to 5 years eventually to buy the shares. What we actually approved was the program. Now the board has the ability to take the decision on how to execute on this program. I think that the important line here is we first prioritize the growth of the business, and if we see profitable growth that makes sense for what we're doing, that's the first priority. On top of that, we look at the financial policy, and that we meet the guidance of the policy that you know well.

Speaker #4: Remember that in Chile, buybacks need to be, first, approved by the shareholders, and they have certain limits. You can only buy up to 5%, and you have up to five years eventually to buy the shares.

Speaker #4: So what we actually approved was the program. Now the board has the ability to take the decision on how to execute on this program.

Speaker #4: And I think that the important line here is: we first prioritize the growth of the business. If we see profitable growth that makes sense for what we're doing, that's the first priority.

Speaker #4: On top of that, we look at the financial policy and ensure that we meet the guidance of the policy that you know well. Any excess cash after these two points is considered in terms of capital allocation.

Roberto Alvo: Any excess cash after these two points is for consideration in terms of capital allocation. Now with the buyback, we have another tool. We have dividends, and we have now this. We also look at reprofiling eventually or changing the debt. As the weeks and months progress, and we have a better outlook of the next quarters and years, the board will have the ability to eventually execute on the share buyback program. Maybe an important just addition to this is the Chilean stock exchanges. They revamped, and what is the word? Probably made more current their procedures in terms of how to buy shares. It was a little bit cumbersome. We had to wait at least 20 days. I mean, the whole process was a little bit more complicated. Now it's much more streamlined. It looks a little bit more like what the US does.

Speaker #4: And now with the buyback, we have another two. So we have dividends, and we have now this. We also look at reprofiling eventually or changing the debt.

Speaker #4: So as the weeks and months progress and we have better outlook of the next quarters and years, the board will have the ability to eventually execute on the buyback share buyback program.

Speaker #4: Maybe an important just addition to this is the Chilean stock exchanges they revamped and what is the word? Probably made more current their procedures in terms of how to buy shares.

Speaker #4: It was a little bit cumbersome. We had to wait at least 20 days. I mean, the whole process was a little bit more complicated.

Speaker #4: Now it's much more streamlined. It looks a little bit more like what the US does. So that, I think, increases the ability of companies in general in Chile to execute on those programs, because the procedure is simpler than what it was in the past.

Roberto Alvo: That, I think, increases the ability of companies in general in Chile to execute on those programs because the procedure is simpler than what it was in the past.

Speaker #6: Gabriel, it's Ricardo. Regarding your question about CASC, and because we are not providing any guidance for next years, I will try to answer your question by referencing two different considerations.

Ricardo Bottas Dourado: Gabriel, it's Ricardo. Regarding your question about CASK, and because we are not providing any guidance for next years, I will try to answer a question regarding two different considerations. Yes, we do have an impact from the inflation and escalation over the cost that we have, but we also have the operational leverage that we could dilute part of this increase in terms of cost with the capacity and the way that we manage our business through an efficient agenda. Remember, if you see the way that we updated, actually, the guidance for this year for CASK ex-fuel passengers, it's almost the same that we updated last time in Q1. Was higher than the original guidance that we disclosed to the market late on December, mainly because the change in the FX assumption.

Speaker #6: Yes, we do have an impact from the inflation and escalation over the costs that we have, but we also have the operational leverage that allows us to dilute part of this increase in terms of costs with the capacity and the way that we manage our business through an efficient agenda.

Speaker #6: But remember, if you see the way that we updated the—actually, the guidance for this year for CASC, ex-fuel on passengers, it's almost the same as what we updated last time in Q1.

Speaker #6: But was higher than the original guidance that we disclosed to the market late on December, but mainly because the change in the FX assumption.

Speaker #6: It's also important to bear in mind that you have to have your forecast for the FX assumption, as that could have an impact.

Ricardo Bottas Dourado: It's also important to bear in mind that you have to also have your forecast for the FX assumption that could have an impact. It's still not answered your question for the future, but the way that you could take some drivers, not as a guidance. If you see the level of CASK from the group since 2019, we are having a very intense agenda in efficient way, also through digitalization and all leverage that we could take to hold in that capacity, to hold the same level of CASK for years, and years mean more than six years. Having said that, I think it's fair to think that we are working hard to hold the CASK as a real advantage for the group.

Speaker #6: And it still does not answer your question for the future, but the way that you could take some guidance, if you see the level of CASK from the group since 2019, we have been having a very intense agenda in an efficient way, and also through digitalization and all the leverage that we could take to hold that capacity—to hold the same level of CASK for years.

Speaker #6: And years mean more than six years. So having said that, I think it's fair to think that we are working hard to hold the cost as a real advantage for the group.

Speaker #4: And just one additional clarification because you asked about the mix of currencies. We have, of course, cost in Chilean pesos in soles in Peru, in Colombian pesos, and so on.

Roberto Alvo: Just one additional clarification because you asked about the mix of currencies. We have, of course cost in Chilean pesos, in soles in Peru, in Colombian pesos and so on. The real one that matters is the real, and this is why when we provide guidance, we basically focus there. I think that you can simplify the model by assuming that the real is what matters in terms of FX changes in the cost. The others are relatively small. They're not very significant. As Ricardo said, a significant amount, a most significant portion, almost all of the difference between the guidance we gave in December and the guidance we have today, the change in the cost ex-fuel is related to the appreciation of the real. That gives you, I think, one data point in terms of how to model this.

Speaker #4: But the real one that matters is the real. And this is why, when we provide guidance, we basically focus there. So I think you can simplify the model by assuming that the real is what matters in terms of FX changes in the cost.

Speaker #4: The others are relatively small. They're not very significant. So as Ricardo said, a significant amount, a significant and most significant portion, almost all of the difference between the guidance we gave in December and the guidance we have today, the change in the cost ex fuel is related to the appreciation of the real.

Speaker #4: So that gives you, I think, one data point in terms of how to model this.

Ricardo Bottas Dourado: Sorry, just another side comment. Do not forget to also look the impact from this FX situation over the RASK, because we also have an impact from these variations in terms of FX over the RASK. After all, it is important to see the evolution of RASK in the CASK.

Speaker #6: And sorry, just another side comment. Don't forget to also look at the impact from these FX situations over the rest, because we also have an impact from these variations in terms of FX over the rest.

Speaker #6: And after all, it's important to see the evolution of risk and the CASC.

Speaker #4: And that's why we provide the two figures in terms of risk in domestic markets.

Roberto Alvo: That is why we provide the two figures in terms of RASK in domestic markets.

Speaker #5: Thank you very much. That was very clear.

Gabriel Rezende: Thank you very much. Very clear.

Speaker #7: Reminder: If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again.

Operator 2: Reminder. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your next question comes from Joao Friso with Goldman Sachs. Your line is now open. Please go ahead.

Speaker #7: We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you muted locally, please remember to unmute your device.

Speaker #7: Your next question comes from Zhao Friso with Goldman Sachs. Your line is now open. Please go ahead.

Speaker #8: Yes. Hey, good morning, everyone. Thanks for taking my question. I have a quick follow-up on the guidance for leverage. You mentioned you're expecting leverage to be below 1.6 times for year-end.

Joao Friso: Yes. Hey, good morning, everyone. Thanks for taking my question. I have a quick follow-up on the guidance for leverage. You guys mentioned you're expecting leverage to be below 1.6 times for the year-end. I wanted to hear your thoughts on what the leverage, excluding the planes that are expected to come in towards the end of this year. Leverage comes first, right? Then EBITDA comes afterwards. I wanted to hear about what's leverage without the planes that are only going to generate EBITDA towards the end of this year, beginning of 2027. Thank you very much.

Speaker #8: I just wanted to hear your thoughts on what the leverage would be, excluding the planes that are expected to come in towards the end of this year.

Speaker #8: Leverage comes first, right? And then EBITDA comes afterwards. So I just wanted to hear about what's leveraged without the planes that are only going to generate EBITDA towards the end of this year, beginning of 2027.

Speaker #8: Thank you very much.

Speaker #6: Okay, thank you. I think we're not providing any guidance in terms of the breakdown that you are asking, but I think it's important to mention that all—and it doesn't matter the way that we decide to finance the fleet.

Ricardo Bottas Dourado: Okay. Thank you. I think we're not providing any guidance in terms of the breakdown that you are asking. I think it's important to mention that it doesn't matter the way that we decide to finance the fleet, if it's going to be through finance lease or operational lease. After all, it's everything accounted as debt. I think it's also important to note that this updated guidance to be below or equal to 1.6 times, it's also including our decisions to finance the fleet and when we will finance the fleet. Also in the earnings release, you can see that we have added some additional facilities in this quarter. Also it's including the net leverage in the way that we are forecasting the leverage.

Speaker #6: If it's going to be through finance lease or operating lease, after all, it's everything accounted as debt. And I think it's also important to notion that to note that this updated guidance to be below or equal to 1.6 times, it's also including our decisions to finance the fleet and when we will finance the fleet.

Speaker #6: And also, in the earnings release, you can see that we have added some additional facilities in this quarter. And also, it's included in the net leverage and the way that we are forecasting the leverage.

Speaker #6: But I think it's complicated to split that level of leverage, not including, but it's quite easy to make the calculation having a list of that, that we have in the attachment of the earnings release.

Ricardo Bottas Dourado: I think it's complicated to split that level of leverage. It's quite easy to make the calculation having a list of debt that we have in the attachment of the earnings release. I don't know if I help you. That's the way that I should answer your question.

Speaker #6: I don't know if I can help you, but that's the way that I should answer your question.

Speaker #5: Yeah, that's helpful. Thank you very much.

Joao Friso: Yeah, that's helpful. Thank you very much.

Speaker #7: There are no further questions at this time. I will now turn the call back to Ricardo Botas for closing remarks.

Operator 2: There are no further questions at this time. I will now turn the call back to Ricardo Bentes for closing remarks.

Speaker #6: Thank you all again for participating in today's call. If you have any further questions, please reach out to our Investor Relations team. Thank you again, and have a nice day.

Ricardo Bottas Dourado: Thank you all again for participating in today's call. If you have any further questions, please reach out to our investor relations team. Thank you again, and have a nice day.

Speaker #7: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 2: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 1: This event has now concluded. Thank you for joining Q2 2026 LATAM Airlines Group earnings conference call. The line will disconnect automatically.