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·         LATAM Airlines Group reported operating income of US$ 120.6 million for the third quarter 2015, with operating margin reaching 4.8%, an increase of 1.0 percentage point compared to the third quarter of 2014. Profitability improvements this quarter were driven by cost efficiencies as a result of lower fuel prices, as well as by the Company’s ongoing cost savings initiatives. Excluding fuel, cost per ASK equivalent decreased by 13.7% as compared to third quarter 2014.

·         As a result of a weaker macroeconomic environment in South America and the significant devaluations of Latin American currencies during the period, especially the 55.5% depreciation of the Brazilian real, total revenues for the Group during the third quarter 2015 declined by 19.9% as compared to third quarter 2014.

·         LATAM reported a net loss of US$113.3 million in third quarter 2015, similar to the net loss of US$107.8 million in third quarter 2014. Non-operating results include a non-cash foreign exchange loss of US$241.1 million mostly recognized at TAM as a result of the 27.2% devaluation of the Brazilian real during the quarter. The Company has been able to mitigate this foreign exchange loss over time by reducing its balance sheet exposure to the Brazilian real.

·         Considering the challenging economic scenario in Brazil and the resulting slowdown in the airline industry, TAM reduced domestic capacity in Brazil by 5.9% in September 2015 and, as previously announced, it is reducing capacity during the fourth quarter 2015 by approximately 8% to 10% as compared to 2014. As a result, the Company has already shown improvements in revenues per ASK, which increased by 10.7% as compared to the previous quarter, and by 6.0% as compared to third quarter 2014, when measured in Brazilian reais.

·         In order to adjust to weaker expected demand conditions, LATAM Airlines Group is revising its fleet capital expenditures for the next three years. The Company has undertaken a plan to restructure its delivery schedule for 2016–2018, aiming to reduce fleet commitments for the period by approximately 40%, equivalent to a reduction of approximately US$3.0 billion, through deferrals and sales of both wide body and narrow body aircraft. This restructuring seeks primarily to adjust capacity to the prevailing market conditions in Latin America, and is in line with our focus on maintaining a healthy balance sheet and adequate liquidity by reducing capex and pre-delivery payments. During this year, the Company has already successfully accomplished a significant portion of this plan, achieving a reduction of approximately US$1.8 billion in fleet commitments for the period, including the deferral of certain aircraft originally scheduled for delivery in 2017 and 2018. In addition to these ongoing negotiations, the Company is planning the redelivery of 20 aircraft for 2016, including the phase out of its 10 remaining Airbus A330s. Furthermore, the Company continues to rationalize freighter capacity, having finalized the sublease of one of its four 777-200Fs to a third party.

·         LATAM seeks to maintain an adequate level of liquidity, which we consider to be in the range of US$1.5 billion. As of September 30, 2015, the Company had US$1,542.3 million in cash and cash equivalents, which represents 14.2% of last twelve months revenue. Regarding our fleet commitments, we have completed approximately 80% of our fleet financing requirements for 2016.