• Additionally, the group achieved a positive EBITDAR for the fourth consecutive quarter (earnings before interest, taxes, amortization and depreciation and aircraft rentals).
• In September 2022, LATAM operated a total of 142 destinations, equivalent to 98% of what was flown before the pandemic, which was 145 destinations in December 2019.
• Operating revenues totaled US$2.587 billion, representing an increase of 97% versus the same period of 2021.

Santiago, November 8, 2022. LATAM released its financial results for the third quarter, reporting its first positive operating result of the year, reaching US$63.1 million in a challenging macroeconomic context and just days after exiting its Chapter 11 proceeding. At the same time, it reached a positive EBITDAR (earnings before interest, taxes, amortization and depreciation and aircraft rentals) for the fourth consecutive quarter, reaching US$399.4 million.

"This is a quarter that accompanies the recovery path. We have achieved improved financial results in terms of both passenger and cargo businesses, with total revenues very much in line with pre-pandemic figures, along with a significant operational recovery. We also reported a fourth consecutive quarter of positive EBITDAR. We remain cautiously optimistic for the future as we monitor fuel prices and macroeconomic variables," said Ramiro Alfonsin, CFO of LATAM Group.

LATAM reported a net loss of US$296 million during the quarter, compared to a net income of US$86.3 million in 2019. The loss is mainly due to Chapter 11 reorganization expenses and to the costs associated with the DIP financing.

Operating capacity reached 81% of 2019 levels as of the third quarter, compared to a 72.6% recovery of the second quarter of 2022. Domestic markets achieved a near 100% recovery compared to pre-pandemic levels; meanwhile, the international and corporate segments experienced a strong increase in recent months.

In September 2022, LATAM operated a total of 142 destinations, equivalent to 98% of what was flown before the pandemic, which was 145 destinations in December 2019.

During the period, operating revenues totaled US$2,587 million, in line with 2019 levels, reaching an increase of 97% versus the same period in 2021.

In addition, operating expenses reached US$2,524 million (+5.3% versus 2019), which is mainly explained by the price of fuel, which increased 88.4% compared to the same quarter of 2019. However, the operating expenses, ex fuel, decreased by 15.8% compared to the same period of 2019.

It is worth mentioning that on November 3, 2022, the group successfully completed its restructuring process in the United States, which it voluntarily entered into in May 2020 to reduce its debt, access new sources of financing and transform its business in response to the global pandemic. LATAM emerged from Chapter 11 strengthened with over US$2.2 billion in liquidity (approximately US$1.1 billion in cash plus US$1.1 billion in undrawn revolving credit facilities), US$10.3 billion in additional issued equity and US$6.8 billion in debt.

A notable milestone in the period was the approval of the Joint Venture (JV) between Delta and LATAM that will allow passengers to access more than 300 destinations between the US/Canada and South America (Brazil, Chile, Colombia, Paraguay, Peru and Uruguay). The agreement will make it easier for the airlines to increase their level of cooperation in the aforementioned markets, which will translate into a greater number of routes, more and better connections and the strengthening of the benefits of frequent flyer programs.