The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Guilherme Mendes - JPMorgan Chase & Co - Analyst
: Yes. Thank you and good morning, Roberto, Ricardo, Andres, and Tori. Two questions. The first one is on the growth outlook. You mentioned the
release on the on the intro that you see growth fraternities for the next two or three years. But what does it mean in terms of ASK growth? I know
there's no formal guidance beyond 2025, but any color on how each of the markets could grow would be appreciated.
And the second point is on the capital location and leverage. It's clear that the company continues to generate free cash flow, reduce leverage.
And although we saw dividend payments and the ongoing buyback program, should we think that any gap between the current leverage and
what you said as the 2 times financial target could be distributed as dividends going forward? Thank you.
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JULY 29, 2025 / 1:00PM, LTM.SN - Q2 2025 LATAM Airlines Group SA Earnings Call
Question: Guilherme Mendes - JPMorgan Chase & Co - Analyst
: That's very clear. Thank you, both, for the answers.
Question: Michael Linenberg - Deutsche Bank AG - Analyst
: Hey. Good morning, Roberto, Ricardo, Tori. Very good results. I guess two questions here in revenue, you can see how well your Cargo revenues
held up despite the Liberation Day announcements and, obviously, we've heard other carriers talk about some cargo softness. But your other
revenue was down pretty meaningfully. I know it's not a big number, but what was driving that other piece? What's in there?
Question: Michael Linenberg - Deutsche Bank AG - Analyst
: Okay. No. That's good. I didn't know if there's a loyalty piece in there or some sort of reclassification. That's all I was getting to.
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JULY 29, 2025 / 1:00PM, LTM.SN - Q2 2025 LATAM Airlines Group SA Earnings Call
Question: Michael Linenberg - Deutsche Bank AG - Analyst
: Okay. Great. And then just my second question, and this is more big picture. I mean, the June quarter historically was always the tough quarter
when you think about LATAM from a seasonal perspective. And the margin that you just put up in that June quarter, that's eye opening. And I have
to go back many years, that may be one of your best June quarters ever from a profitability standpoint.
And I just -- as it speaks to seasonality and it may be just as your network has just grown and expanded, and also, the strength that you have within
your domestic markets. Are we at a point where -- the June quarter, I guess, will still always be maybe a seasonally more challenging quarter for
LATAM, but when we think about the balance of your network today, is it just -- is it going to be less of an impact that we would have seen in the
past?
I mean, it feels like you've moved into this next level. It's like the next chapter of LATAM where you've now found enough markets and you have
such a diversified revenue stream that you've basically mitigated the seasonal impact that we used to see. I mean, there was a time where you
would actually lose money in the June quarter.
And this margin, this is going to be one of the -- among some of the best margins for carriers that the June quarter, seasonally, one of the strongest
quarters. So I'm just -- if you can speak to that because it does feel like there's some structural changes underway that may be permanent that are
helping your overall full-year profitability. Thanks for taking my question.
Question: Michael Linenberg - Deutsche Bank AG - Analyst
: Great. Thank you.
Question: Gabriel Rezende - Banco Itau BBA SA - Analyst
: Hi, Roberto. Hi, Ricardo. Thanks for taking my questions. I just wanted to do a follow up over your guidance update. So just trying to understand
what is underpinning your higher than anticipated capacity for the full year? Just trying to break this down on LATAM's ability to receive the aircraft,
maybe, at a faster pace than anticipated?
Or whether this is solely related to a better anticipated demand across the board for your geography? Again, trying to understand how strong
these demand at this point and that it might also have benefited from aircraft being delivered earlier than you thought.
And just trying to follow up, again, on the discussions for the coming quarters. If you could help us to understand where you're seeing more upside
for cost projections. I understand that you're benefiting from a good mix on the topline but just trying to understand what are the other opportunities
Question: Gabriel Rezende - Banco Itau BBA SA - Analyst
: Yes, I can hear you. Yeah, the line was breaking a little bit but I can hear you.
Question: Gabriel Rezende - Banco Itau BBA SA - Analyst
: Thank you. (multiple speakers)
Question: Gabriel Rezende - Banco Itau BBA SA - Analyst
: Yes. It was breaking a little bit, but I could hear you, yeah.
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JULY 29, 2025 / 1:00PM, LTM.SN - Q2 2025 LATAM Airlines Group SA Earnings Call
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