LATAM Airlines Group SA Q4 2023 Earnings Call Transcript

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

Question: Guilherme Mendes - JPMorgan - Analyst : Morning. Roberto, Ramiro, Andres del Valle. Thanks for taking my question. I have two actually the first one is regarding the competitive environment, if you can comment how you see competition going forward, especially in Brazil, given the golden Chapter 11 process and also in Colombia, where you clearly have been gaining market share and it should still be the trend going forward. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 23, 2024 / 1:00PM, LTM.SN - Q4 2023 LATAM Airlines Group SA Earnings Call Second question regarding capital allocation. Congrats on generating cash in 2023. And then looking forward, can we start to think about a regular dividend policy or something on that front? Thank you.

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

Question: Savi Syth - Raymond James - Analyst : Hey, good morning, I was just wondering on the passenger unit cost, if you could talk a little bit about it looks like you're thinking flat to up. I was wondering if you can think of talk about like what the drivers are kind of headwinds and tailwinds on the passenger units of costs there? And and then also just on the fleet side, are you expecting kind of a balanced mix between the A320's and A321's? Or will you start to see maybe more up gauging?

Question: Savi Syth - Raymond James - Analyst : No, it's definitely impressive performance there and if I may take a step back on your margin, that's a really strong margin guide as well as curious if you could talk about maybe how much of that is driven by maybe a good industry supply demand dynamic versus perhaps some structural changes versus where you were kind of prior to the pandemic and may be a lifetime or the industry's faced kind of structural changes that are driving margins higher?

Question: Savi Syth - Raymond James - Analyst : That's all very helpful. Thank you.

Question: Neil Glynn - AIR Control Tower - Analyst : Good morning, everybody. And if I could ask three questions, please. And the first one following on from your comments on being able to act strategically, there's obviously been plenty of reports and commentary from yourselves on appetite for gold Boeing 737s. What can you say about the mechanics of how you might procure additional aircraft beyond your current fleet plan over the next few months. Then tied to that, I think I understand that you're not guiding on cash costs for 2024 possibly because of some uncertainty. But can you help us understand, based on the current fleet plan, how much higher cash fleet costs are likely to be in 2024 than 2023 at this point. And then a final question on the cargo side. Your cargo load factors were back to 53% in the fourth quarter. And as you continue to grow cargo capacity with belly space. I'm interested in what you think is the right long-term load factor on expanded cargo capacity. If you look back to the first half of the last cycle, you got nearer to 60%. So interested to see your views on whether you can better fill that belly space over time. Thank you.

Question: Neil Glynn - AIR Control Tower - Analyst : That's very helpful. Thank you.

Question: Andrea Ferraz - Bradesco BBI - Analyst : Good morning. Thank you for taking my question. I have two questions here. First, if you see an upside, do you see an upside for yields and for the 2024 guidance, given the capacity constraints in Brazil, especially considering the main competitor's situation. And myself, my second question is, what should be the CapEx for 2024 and 2025 with the new update (inaudible)? Thank you.

Question: Andrea Ferraz - Bradesco BBI - Analyst : Thank you.

Question: Jay Singh - Citi - Analyst : Yes. Good morning, everybody. I wanted to ask, do you have any update on when you can see a level two ADR program launch?

Question: Jay Singh - Citi - Analyst : And a follow-up I wanted to ask, are there any routes that you used to serve before the pandemic that you do serve now, but might return back to later?

Question: Jay Singh - Citi - Analyst : That's it me. Thank you so much guys.