LATAM Airlines Group SA Q4 2022 Earnings Call Transcript

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

Question: Stephen Trent - Citi - Analyst : Hi. Good morning, everybody. Can you hear me okay?

Question: Stephen Trent - Citi - Analyst : I'm well. Thank you very much. Appreciate the time. And apologies as I did not have access to your slides, but that was my fault. I'm just trying to be -- curious in terms of your thoughts on expansion into other markets. So any high-level thoughts, for example, whether you'd be interested in entering Mexico's domestic market in the event that the AMLO administration approved cabotage or for example, going back to Argentina's domestic market? Would just love to hear your thoughts on that.

Question: Stephen Trent - Citi - Analyst : Hi, Roberto. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2023 / 1:00PM, LTM.SN - Q4 2022 LATAM Airlines Group SA Earnings Call

Question: Stephen Trent - Citi - Analyst : Great. I appreciate that. And apologies if I missed, but sort of any high-level view on the potential timing for a level 2 ADR listing?

Question: Stephen Trent - Citi - Analyst : Okay. Appreciate that, Tori. Thank you.

Question: Savi Syth - Raymond James - Analyst : Hey, good morning, everyone, and congrats on completing the restructuring and then this call. Can I ask you -- one of the things that was kind of newer since the pandemic that was introduced pre-pandemic, but not really executed on was the Delta JV. Could you talk a little bit about the developments there and how you expect that to contribute going forward?

Question: Savi Syth - Raymond James - Analyst : Appreciate that. And then if I might on the -- it looks like based on the unit revenue kind of contribution in the fourth quarter here by the various regions and the way you're growing capacity, it seems like a fairly good recovery across the different regions. But could you talk a little bit about what you're seeing in demand here. If there's corporate demand recovery, is it leisure demand? And just generally in the kind of three different entities, if there's any kind of more strength in one over the other?

Question: Savi Syth - Raymond James - Analyst : That's very helpful. Thanks again.

Question: Guilherme Mendes - JPMorgan - Analyst : Good morning, Roberto, Ramiro, Andres, Tori, and congrats on the first results post-Chapter 11. Two questions on our end. The first one, the competitive environment. So thinking in terms of the Brazilian market and take into account that GOL and Azul just announced a recent liability REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2023 / 1:00PM, LTM.SN - Q4 2022 LATAM Airlines Group SA Earnings Call management process. How do you see the competition in the region? And also in terms of Colombia, given the Viva Air situation, if there's any update and news regarding the potential consolidation in the market? And my second question is regarding the fleet management. So it has been seen some bottlenecks from the industry, OEMs delivering -- delaying some of the deliveries. If you see any risk on your current fleet plan going forward? Thank you.

Question: Guilherme Mendes - JPMorgan - Analyst : That's super clear. Thank you, Roberto and Ramiro. Have a good day. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 10, 2023 / 1:00PM, LTM.SN - Q4 2022 LATAM Airlines Group SA Earnings Call

Question: Neil Glynn - AIR Control Tower - Analyst : Oh, hello. If I can ask two questions, please? The first one with respect to cargo within your outlook for 2023, we've obviously seen a deceleration in growth rates in the fourth quarter of 2022 as cargo yields normalize So interested in your thoughts as to 2023's cargo revenues. And then the second question in the presentation you highlighted LATAM Pass membership is up 65% on 2017 levels, which is quite an impressive uplift. Interested in your thoughts on what benefits has this had already on revenues thus far? And any plans you have to leverage this critical mass further in the future? Thank you.

Question: Jopo Frizo - Goldman Sachs - Analyst : Yes. Thanks and good morning, everyone. Thanks for taking my question. I have a follow-up on the pricing environment. If you guys could please provide us with an overview on the pricing environment across the three segments in light of the falling jet fuel prices. Do you guys foresee you will be able to hold prices in order to improve margins? Or are you already seeing the need to reduce tariffs and therefore pass through those lower jet fuel prices -- jet fuel cost into prices? Thank you.

Question: Jopo Frizo - Goldman Sachs - Analyst : Thank you very much.