LATAM Airlines Group SA Q2 2023 Earnings Call Transcript

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

Question: Guilherme Mendes - JPMorgan - Analyst : Thank you. Good morning, Roberto Ramiro. Andres, Tori. Thanks for taking my question. I have two questions. One is a follow-up on the guidance. We see the capacity was slightly revised downwards but still revenues and margins were revised upwards. I guess part of that is related to yields, which has been surprising to the upside over the past few quarters. Just wondering what is the outlook for yields for the second half of this year and which region you are seeing most upside on. And the second question is regarding Colombia. What is the outlook for the situation? We are seeing that you are adding more capacity in the region. If I'm not mistaken, on the previous call you mentioned about getting to 35% market share or so. It seems we're pretty close to it. Just wondering what the additional capacity addition we should see over the next few quarters. Thank you.

Question: Guilherme Mendes - JPMorgan - Analyst : Many thanks, Roberto. Just one follow-up on the yield side. See if you see any upside on the new guidance.

Question: Guilherme Mendes - JPMorgan - Analyst : Super clear. Thank you.

Question: Andre Ferreira - Bradesco BBI - Analyst : Hi. Good morning, guys. Thank you for taking my question. Can you provide a little more color on the international markets? So first, how is demand in the different markets? And second, related to the capacity expansion, in what region should your focus be and where do you see the most opportunities? Thank you.

Question: Andre Ferreira - Bradesco BBI - Analyst : Perfect. Thank you.

Question: Khalil Abumanneh - Barclays - Analyst : Hey, good morning. Congratulations on the quarter. I have two quick questions. When I look at the guidance for net debt at the end of the year, obviously a decent amount of growth from net debt here today, $900,000 to $1 billion. Curious if you can help us understand the drivers behind the increase in net debt between now and the end of the year. And the second question I have is related to cash flows. Non-fleet -- or fleet CapEx and non-maintenance CapEx, you're tracking about $100 million a year to date in your business plan coming out of bankruptcy. That number for the year was, a lot higher than on the full year. Is this just a timing issue where you're seeing a reduction in the need? Or is this kind of a new run rate that's slower than what you guys expected initially? Thank you.

Question: Khalil Abumanneh - Barclays - Analyst : Okay, thank you very much. And then one last question, if you don't mind. The CASK ex-fuel guide higher versus the last guidance. Can you just help us understand the drivers behind that? 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. AUGUST 03, 2023 / 1:00PM, LTM.SN - Q2 2023 LATAM Airlines Group SA Earnings Call

Question: Khalil Abumanneh - Barclays - Analyst : Understood. Thank you.

Question: Neil Glynn - AIR Control Tower - Analyst : Oh, good morning, everybody. The first one, you've obviously reported a record second quarter, and this is becoming an increasing theme in Europe, APAC, the US, almost everywhere. And I'm wondering, how does this make you think about sustainable margin levels beyond such a strong 2023? How do you think about this period as an exceptional period as capacity comes back versus the permanent effects of the strength you're seeing? And then the second question, I realize it's early in the stage of life of your joint venture with Delta. And Delta obviously has an expansive network of fellow partners around the world. I'm interested how you think about the opportunity of leveraging this on flows that don't touch the US as you continue to grow your international and intercontinental businesses.