The following is a summary of the LATAM Airlines Group S.A. (LTMAY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• LATAM Group displayed a strong Q1 2024 performance, reporting revenues of $3.3 billion and an adjusted EBIT margin of 13.9%.

• The company posted an adjusted EBITDA of approximately $800 million and a net income of $258 million.

• Passenger ex-fuel cost remained steady at $0.043 per ASK.

• The group successfully lowered its adjusted net leverage to 1.9x and generated positive cash flow of $137 million.

• For 2024, the company expects a fleet cost of around $900 million due to the global aircraft shortage and the resultant increased prices.

• The 2024 guidance predicts a rise in adjusted EBITDA, with a midpoint of $2.9 billion.

Business Progress:

• The company transported a record-breaking 20.2 million passengers, obtained a robust load factor of 84.4%, and saw recovery in capacity to 2019 levels.

• LATAM Brazil achieved a record domestic market share of 41% in March, its highest in the last 11 years.

• Despite aircraft delivery delays and high fuel prices, operations remain strong.

• The airline is making strategic improvements to its offerings, remodeling premium cabins, improving onboard connectivity, and building a new VIP lounge in Lima Airport.

• Plans to reopen and release the New York Exchange, subject to market conditions, have been approved by LATAM's Board.

• The aim for 2024 is to finish the year with an adjusted net leverage between 1.6 to 1.8x.

• Rating agencies have positively recognized the company's performance: Moody's (BA3 with a stable outlook), S&P (B+ grade with a positive outlook), and local agency Seller (BBB with a positive outlook).

• The company is focusing on reviving operations in its Santiago, Lima, and Guarulhos hubs to pre-pandemic levels and is re-launching pre-pandemic routes.

• Progress is being made on its ADR listing, with the Board set to approve the timing of listing.

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