LATAM Airlines Group SA Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Guilherme Mendes - JPMorgan - Analyst : So good morning, everyone, Roberto, Ramiro, Andres, Tori. Thanks for taking my questions. I actually have two. The first one is on the guidance. It was a pretty strong performance in the first quarter, especially in terms of margins. And I understand that you reaffirm your guidance for the year, but just wondering if you see any kind of upside potential for the -- your current estimates? And the second question, which is kind of related questions in terms of tariffs. First, if you could explore, how was the performance between segments, leisure, and corporate and maybe between regions as well? And according to the first question, if you see some upside for you going forward over the coming few quarters. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 1:00PM, LTM.SN - Q1 2023 LATAM Airlines Group SA Earnings Call

Question: Shannon Doherty - Deutsche Bank - Analyst : Hi, there. This is actually Shannon Doherty on for Mike. Thank you for taking my question. Just my first one, are you guys facing issues, preparing new aircraft or seeing delays in the maintenance of your existing fleet like many other carriers are? And if so, how are you compensating for this?

Question: Shannon Doherty - Deutsche Bank - Analyst : That's great. And for my second question. It's sounds like the Board approved the future distribution of dividends. Can you remind us of what that dividend policy would be and is that a 2023 even or maybe 2024 and beyond? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 04, 2023 / 1:00PM, LTM.SN - Q1 2023 LATAM Airlines Group SA Earnings Call

Question: Victor Mizusaki - Bradesco BBI - Analyst : Hi. Thank you. So I have a -- just a quick question here. So basically, LATAM issues some -- I mean, the 2027 and the 2029 bonds as part of the plan to emerge from Chapter 11, but why do we take a look on your results and maybe the first quarter, actually, the numbers are improving really fast. So my question is, I mean, you do have end plans? Or if -- is there any kind of possibility to refinance these bonds?

Question: Victor Mizusaki - Bradesco BBI - Analyst : Okay. Thank you.

Question: Neil Glynn - AIR Control Tower - Analyst : Good morning. If I could ask two questions, please. The first one with respect to ex-fuel unit costs. You obviously highlighted there, I think 3.7% below pre-pandemic levels on the slide. Just interested, can you give us some color as to where you're experiencing the most difficulty preventing costs creeping back in about 2023 progressive. How do you think about getting comfortable with 2024 and keeping those unit costs below pre-pandemic levels? And then the second question with respect to Colombia, can you provide an update on your expectations for developments there? And with the two carrier failures in the local market, what is your latest ambition to grow in the market over the medium term? Thank you.

Question: Neil Glynn - AIR Control Tower - Analyst : Many thanks.

Question: Jonas Aida - - Analyst : Hi. Thank you very much. One question. Can you explain how your net debt from around $5 billion today is going to around $6.1 billion per guidance by the end of the year? Is that cash flow driven or it's just lease liabilities, non-cash driven by increase in number of aircraft? Thank you.

Question: Jonas Aida - - Analyst : So is it driven by just aircraft and non-cash movements? It's not so that you -- it's not you're burning cash?

Question: Jonas Aida - - Analyst : Thank you.