LATAM Airlines Group SA Q3 2025 Earnings Call Transcript

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

Question: Guilherme Mendes - JPMorgan Chase & Co - Analyst : And congrats on another pretty strong results. My question is on the international front. When compared to Brazil, domestic and Spanish-speaking countries, it looks like the past performance was relatively weaker, although it's still growing on a year-over-year basis. Can you share more details on how international is tracking, maybe on a per-region basis, which other routes have been pressuring the overall results and which are doing relatively better?

Question: Guilherme Mendes - JPMorgan Chase & Co - Analyst : Very clear, Robert. Thank you. When you say softer into the US, this is more leisure related or even corporate related?

Question: Michael Linenberg - Deutsche Bank AG - Analyst : I have a couple here. I guess, Roberto, can you just update us on this measure in Brazil to potentially force airlines to offer up a free bag? Is that just domestic? Is that domestic and international? And where is that in the legislative process right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 17, 2025 / 1:00PM, LTM.SN - Q3 2025 LATAM Airlines Group SA Earnings Call

Question: Michael Linenberg - Deutsche Bank AG - Analyst : The reason I ask is, and you mentioned international, is that, all right, domestic is one thing, but international, from the perspective, I know at least from the US, they may view it as a potential tax or additional cost that's unilateral and therefore in violation of the bilateral. So I just wonder how they implement it internationally when international carriers have different ways and how they price their product and obviously are protected by the bilateral arrangements between Brazil and those countries.

Question: Michael Linenberg - Deutsche Bank AG - Analyst : Great. Just my second on capital allocation. And this is, Roberto, to you or Ricardo, how you think about it longer term. You've had a nice balance. Obviously, the dividend is, you know, statutory, but you pay the dividend, you've been paying down debt, you've also been buying back stock. As we think about the sort of the various levers going forward, should we expect to see, say, regular reductions in shares outstanding or was that more of just an opportunistic initiative on your part?

Question: Gabriel Rezende - Banco Itau BBA SA - Analyst : And congrats on these very strong results. I would like to follow up on your comments regarding the investments and the efforts you have been putting into bringing a more premium experience to the customers and just trying to understand how relevant it has been so far in terms of your revenue growth as well as your profitability. If you could maybe provide some color on how relevant these premium revenues are at this point. You mentioned that it has grown by 15% year on year. Just trying to understand how much it represents out of total passenger revenue at this point and how much could it represent in the future as you bring more efforts into this. .

Question: Ewald Stark - BICE Inversiones AGF SA - Analyst : I want to know if you can provide any color behind what is driving the lower percentage of hedge fuel during this quarter. Especially as I would like to focus on if there is anything on booking going forward that is driving this lower percentage of hedge fuel or maybe you're looking at something different about forecast of oils.

Question: Ewald Stark - BICE Inversiones AGF SA - Analyst : Financial statements say that it says you have a 26% hedge fuel for the next 12 months. Starting from quarter one, first quarter of 2026, every quarter is below 30%.

Question: Guilherme Mendes - JPMorgan Chase & Co - Analyst : Regarding the pallet strike in Chile, can you share some potential expected impact for the fourth quarter? I understand it should be material, but I just wanted to hear your thoughts on what you expect on this negotiation.