LATAM Airlines plans to become profitable again on 2024

LATAM Airlines projects, al 2024, return to profitability at levels of 2019, and an increase in the operating income of the 78% al 2026, compared to the períI smell pre pandemic.

Within the process of Capíleakage 11 started in May 2020 LATAM, is advancing in the reorganization processón, renegotiationón and refinancingón that will allow youá go outóximately of this necessary stage to be able to face the current and futureówe challengeíos.

That is why the aerosolínea has presented púobligingly cóhow this process progresses and cómo será the final path to completing this stage that was forced to enter given the COVID-19 pandemic. COVID-19.

Business plan

The business plan includes a visionón of recoveryón of demand, The plan of fleet, financial and operational projections 2026, among others. Regarding the capacity (ASKs) projected, the group expects to return to pre-pandemic levels in the 2024 and to a growth of 7% al 2026, compared to 2019. This result can be explainedífor a recoveryótotal n of the sun marketéstic and from international to 2022 and 2024 respectively, subject to market changes.

This recoveryón isá supported by the operational increase in the domestic marketéLATAM Airlines Brasil look to date, that reachedó a capacity (measure in ASK) of the 77% in August, in comparisonón with 2019, and it is foreseené that exceeds the 100% of the levels of 2019 at the beginning of 2022. sun marketséaesthetics of the Colombian subsidiaries, Ecuador, Perú and Chile have already reached the 72% in August while the recoveryóinternational group, both regional and long range, continúand youébeing affected by travel restrictions.

Total revenue increaseían 13% al 2026; passenger cars growían 8% while the charging ones reachían increase of 59% in respect of 2019.

The reduction initiativesón of expenses during the Capíleakage 11, which include improved efficiency thanks to the transformationón digital, to renegotiateón with suppliers and restructuringófleet number addíover US$900 million annually.

Extension requestón of the període of exclusivity

You enter LATAMó una powerón that seeks to extend the períexclusivity mode to present your reorganization planón until the 15 October 2021 and request approvals from the same plan until 15 from December to 2021.

Updateón about the process of Capíleakage 11

Currently, It is wideá negotiating with various interest groupsés to agree on a reorganization planón and exit to successfully emerge from Capíleakage 11 in compliance with all applicable laws.

During the úlast months, as part of the Cap processíleakage 11, LATAM has developed and made availableósome informationón material no púpublicity for interested parties who are under confidentiality agreements.

Said informationón includes five to five projectionsños and an estimateóinitial n (with high and low stages) of all claims. This initial estimate amounts to approximately US$8 billion in the scenario under (US$14.2 billion including intercompa claimsñía) and US$9.9 billion in the high scenario (US$16 billion including intercompa claimsñía).

LATAM presentó a proposal for an indicative structure for its reorganizationón for US$5 billion of equity financing and contemplatesó a plan agreed upon by interest groupséyes it includedó, among other things, compromise of certain rights, by éstack, además of compliance with both the CóI say about United States Bankruptcies as the Chilean law.

In response to your presentationón, LATAM I receivedó various non-binding financing and exit capital proposals así like restructuringón of its main creditors and its majority shareholders. Each proposal contemplates raising más of US$5 billion throughés from emissionsón of new debt and equity in LATAM Airlines Group S.A., what to beísupported by the parties making the proposal. Además, in each proposal, The proponents consider that if éThis is approved and implemented, it will resultíin a dilutionón substantial of the currently existing shares of LATAM Airlines Group S.A.

LATAM maintenanceá informed its shareholders and the market about the progress of the Cap proceduresíleakage 11 and, further, contemplates calling its shareholders to an extraordinary meeting of shareholders when appropriate according toún the progress of negotiations with the various interested parties that are pending today.

As recovery progressesón of your destination network, where for example in Ecuador was reachedó ya el 100% of sun routesépre-pandemic statics, the airínea searchá close the añor with good news driven by the peak travel season.